EA CEO John Riccitiello steps down, takes responsibility for company’s poor financial performance
Gaming giant, Electronic Arts has announced that CEO John Riccitiello will be stepping down at the end of this month. The company has appointed Larry Probst as the Executive Chairman for the time being till the Board of Directors hunt for a suitable candidate to take Riccitello’s place.
Riccitiello, who joined the company in 2007 and led it through a transformation period when game developers were fast shifting towards mobile devices, revealed the company’s financial shortcomings as the reason for his resigning. “My decision to leave EA is really all about my accountability for the shortcomings in our financial results this year,” he said in a statement. “It currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued to the Street, and we have fallen short of the internal operating plan we set one year ago. And for that, I am 100 percent accountable,” he added.
Another reason for the resignation could also be the server issues plaguing SimCity, the company’s biggest launch in recent times. Since day one, players are having a hard time logging in to the always-connected single-player game.
EA also added that the company’s revenues had fallen and the net revenue is expected to be around the lower-end of the estimation for this quarter around $1.115 to $1.215 billion. The company hopes that the new CEO will bring in fresh ideas and help it ride out this financial crisis.