Once considered impervious to a stormy economy, the video-game sector is starting to show signs of strain.
Electronic Arts Inc., which produces such franchises as “The Sims” and “Madden NFL,” said last week it would likely miss sales and profit targets for its fiscal year because of disappointing holiday sales in North America and Europe.
The world’s largest game publisher also said it would find ways to cut costs, including canceling some projects and making deeper job cuts than the 6 percent reduction announced in October.
“While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations,” said EA chief executive John Riccitiello.
The news came as Sony Corp., which makes the PlayStation 3 game console and many other consumer electronics, said it would eliminate more than 8,000 jobs, or 5 percent of its workforce, and let go at least that many seasonal and temporary workers to cope with an “acute downturn in the economic climate.”
Sony also said it plans to slash investments in its electronics business by 30 percent in its next fiscal year.
Many still expect the industry’s overall revenue to grow in 2008, but with less consumer wealth to go around, companies are feeling the pinch.
