Despite depressing news of a 9-percent decrease in video game sales during June, the second largest video game publisher in the world, Electronic Arts, has apparently decided to take a pass on the current gaming recession, reporting a surprising $96 million in profit in the second quarter.
The results defied the expectations of doom-sayer analysts, who had predicted a loss for the company of $32.2 million, based on the average of 13 separate estimates, following a strong first quarter. A slew of new games coming out this holiday season, including Medal of Honor, FIFA 11 and Madden 11, has analysts cautiously predicting another strong quarter for EA, despite having been almost universally wrong.
The news isn’t all good, though. Part of the profitability is a result of lowering expenses, which included cutting over 2,500 jobs since 2008. That does not seem encouraging for job seekers, and it could indicate that future cuts could happen if needed. The financial report also comes after EA sold off its 15-percent share in Ubisoft.
On the positive side, EA has begun to invest heavily in online gaming, as well as developing mobile games for devices like the iPad. In November, EA purchased Playfish, the second-largest game maker on Facebook, to increase its reach into the growing casual, online gaming market.
