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EA CEO John Riccitiello Resigns

By Brian P Rubin | 19 March 2013 | 5 Comments   

riccitiello

Yesterday, it was reported that Electronic Arts’ CEO, John Riccitiello, was resigning from his position effective March 30—apparently as a result of lower-than-projected financial predictions for the end of the fiscal year. Riccitiello’s resignation letter explains how he came to the decision to step down from the position he’s held since 2007:

“This is a tough decision, but it all comes down to accountability. The progress EA has made on transitioning to digital games and services is something I’m extremely proud of. However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA’s shareholders and employees expect better and I am accountable for the miss.”

A post on Polygon points the way to a press release published on EA’s investor site, which explains that Riccitiello’s resignation will bring in former CEO and current Board of Directors Chairman Larry Probst as the interim CEO while the company searches for a permanent replacement. Said Probst on Riccitiello’s departure:

“We thank John for his contributions to EA since he was appointed CEO in 2007, especially the passion, dedication and energy he brought to the Company every single day. John has worked hard to lead the Company through challenging transitions in our industry, and was instrumental in driving our very significant growth in digital revenues. We appreciate John’s leadership and the many important strategic initiatives he has driven for the Company. We have mutually agreed that this is the right time for a leadership transition.”

While EA’s financial outlook may be below expectations, it’s still been one of the most consistently successful companies under Riccitiello’s guidance—though, from a public relations standpoint, the company’s had more than its share of troubles. Last year, EA was named “Worst Company in America” by the Consumerist, while there was an uproar over the end of Mass Effect 3 shortly after that game’s early 2012 release. And, obviously, the recent debacle regarding SimCity’s launch can’t be ignored when looking to compare EA’s recent successes and failures.

And those are just the ones I can think of off the top of my head. Some of our readers and commenters tend to have some pretty unfavorable opinions regarding EA, despite the fact that they publish some of the best and most highly regarded games around. That never enters into it for many video game fans: EA’s size and business practices leaves a lot of fans feeling uncharitable toward the company, and that’s got to be a tough uphill battle for its management to fight.

So, to me, Riccitiello’s resignation raises the question: was it totally voluntary? Or was it “suggested” by the board of directors, the chairman of which will be taking over once the current CEO exits?

Just a thought…

Source: EA and Polygon

5 Comments

  1. Posted by Mark on 19 March 13 at 10:09am

    It’s a shame, even if the last few years were kinda shaky for EA, gotta admit that they did made some nice innovations for old series and made some solid new games, controversy aside.

    Now if they would only get rid of Origin, (And since that’s wishful thinking, at least have the decency to update older games to reflect Origin, so that it doesn’t appear redundant) I might find a place in my heart to love them again.

    • Posted by Brian P Rubin on 19 March 13 at 11:23am

      I am shocked that one of our readers posted a reasoned, non-insane comment about EA. Congratulations to you, to us, and the entire human race!

  2. Posted by Adam on 19 March 13 at 12:33pm

    I still dont understand why people think the mass effect 3 ending was lacking, and even if i did think so, it wouldnt be EA’s fault, it would be biowares. And while the whole sim city thing sounds absolutely ridiculous, and whoever forced the ge to be on servers should be fired, i doubt that he made this call. Its sad to see him leave because the rest of EA’s management is at fault, although im sure hes contributed to at least some of the bad decisions in the past 6 years.

  3. Posted by Whinterfell on 19 March 13 at 12:53pm

    I can see this being a bit more then ‘voluntary’ on his part. Never seen a company that gets as much flak and have as many issues as they had with fans and consumers and not have something like this happen sooner.

    I enjoyed the games they produce, regardless of some of their more shady practices, and still play them. Like many I just simple skipped over the DRM style games they messed up with. I like origin, it has grown on me much like Steam did when it first started years and years ago. And it has improved as well with time.

    Am I sad it is happening. Not really, I saw this coming at one point or another. But I do see that this may help in the long run for both consumers and EA itself. John Riccitiello had some interesting ideas, but had far more harmful ideas it he long run. With a change it may lead into a new path which works better for all involved.

  4. Posted by DAT ZUPA KOOL GUYE on 19 March 13 at 9:34pm

    I don’t think that EA will get rid of origin ever, THEY WANT TO WATCH US!! and btw Adam you spelled biower wrong

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