EA reorganizes, Lee left out?
Electronic Arts has recently reorganized its top-ranking officials and made some key changes to its administrative roster. The maneuver was welcomed by a lot of observers, but one analyst made an interesting observation.
Wedbush Morgan analyst Michael Pachter says that the reorganization was a good move and a necessary one for the publisher, but someone seems to be missing in the equation: R&D head Paul Lee. “In our view, the most important item in the press release is the omission of any mention about Paul Lee, the current head of R&D. It appears to us that Mr. Lee may have been reorganized out of a job,” he says. Pachter continues:
He has been in his position for about a year, following the departure of Don Mattrick last year, and in that brief period, we believe that EA game quality has improved. However, we think that Mr. Riccitiello is laser focused on cost control, given that the R&D budget has doubled during his three-year hiatus from EA, while revenues have grown by only around 5%.
According to the analyst, one reason why EA is reorganizing may be because the administration has decided not to go all-out on research and development. He says he expects EA to begin talking more about its plans and policies soon.
For one, Colin Sebastian of Lazard Capital Markets agrees with Pachter on the necessity of restructuring. “We believe the restructuring was a necessary byproduct of EA’s rapid growth over the last video game cycle compounded by operational challenges evident during the recent console transition period,” he says.
No official word from EA has been released regarding Lee’s status and what the new policy on research and development is. A statement is expected by many to come out any time soon. We’ll keep you posted for more.
Via Game Daily
Electronic Arts has recently reorganized its top-ranking officials and made some key changes to its administrative roster. The maneuver was welcomed by a lot of observers, but one analyst made an interesting observation.
Wedbush Morgan analyst Michael Pachter says that the reorganization was a good move and a necessary one for the publisher, but someone seems to be missing in the equation: R&D head Paul Lee. “In our view, the most important item in the press release is the omission of any mention about Paul Lee, the current head of R&D. It appears to us that Mr. Lee may have been reorganized out of a job,” he says. Pachter continues:
He has been in his position for about a year, following the departure of Don Mattrick last year, and in that brief period, we believe that EA game quality has improved. However, we think that Mr. Riccitiello is laser focused on cost control, given that the R&D budget has doubled during his three-year hiatus from EA, while revenues have grown by only around 5%.
According to the analyst, one reason why EA is reorganizing may be because the administration has decided not to go all-out on research and development. He says he expects EA to begin talking more about its plans and policies soon.
For one, Colin Sebastian of Lazard Capital Markets agrees with Pachter on the necessity of restructuring. “We believe the restructuring was a necessary byproduct of EA’s rapid growth over the last video game cycle compounded by operational challenges evident during the recent console transition period,” he says.
No official word from EA has been released regarding Lee’s status and what the new policy on research and development is. A statement is expected by many to come out any time soon. We’ll keep you posted for more.
Via Game Daily