Having already implemented major layoffs for a second year in a row, EA CEO John Riccitiello needs to start cutting more nitty-gritty costs. Following up on previous statements about cutting the number of releases per year, the executive tells Reuters that the company will have 40 releases in the next fiscal year, but that around 30 releases a year "wouldn't shock [him] at some point in the future." Focusing on fewer, quality titles sounds like the THQ gambit.
Another way EA can reduce costs is by cutting down on its packaged goods manufacturing and distribution. Riccitiello believes packaged games like Madden NFL will always have a following, but that digital distribution will account for half the industry in 2010, up from 40 percent. He states that EA's "goal" for the publisher's digital distribution operation is to become "as important as, and over time maybe more important than, our packaged goods business."