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Which -- a cautious consumer weighing on electronics arts as the company -- is on second quarter earnings estimates.
John -- hello is the CEO of electronic arts -- with us this morning good to see John.
Good morning great to be her -- So you -- a lot in this quarter he didn't -- on the earnings per share you did beat on the revenue but you announced more restructuring.
Walk me through some of those announcements.
What -- first up I think.
One of the challenges in interpreting electronic arts these days is it we change some of our -- in terms of revenue recognition so.
If we selling game in this quarter we recognize this revenue over the next two quarters -- -- a little hard to interpret so first -- when we sat out that the stage for him.
I'm so far this year electronic arts is the number one game publisher globally very strong revenue growth in a market where.
The industry has in -- contract a little bit -- revenue up fiscal year -- up 13%.
We're number one on the PlayStation 3 of them on the Xbox number one on the -- to number one overall.
Record market shares our most recent quarter when we just reported.
-- fact beat street expectations on revenues and -- feeling good going into the holiday.
We've got Madden on the shelves need for speed on the shelves we've got.
A great game coming in my forget who we just launched that the number one game in the country right now which is Dragon Age -- yourself.
On the package could -- it feels pretty good.
But to your question.
We see the marketplace of all things.
From being one where consumers buy discs to a place where there find downloadable content can't work content they consume on mobile phones etc.
So what we announced on our -- -- quarter.
Was an investment and play fish which is one of the social networking companies -- a leader on FaceBook platform.
And we've cut back further and some of our core operations.
Which is where we're seeing a little bit of a slow down at a market bubble we're gaining share -- -- market level for packaged -- that.
-- -- And and I presume that's why John Ewing announced that you're gonna -- the number of titles next year to forty titles.
From sixty pre existing titles this year and you're investing much more aggressively.
In things like social networking an on -- gaming.
Is that because you're seeing a massive sea change in the business or because at the end of the day.
People are not gonna pay sixty dollars for a video game.
Actually the interesting thing is I think you capture that -- look at the issue conveying it.
Is that there is a transition going.
For years now there's been about 250 million consumers globally.
That will pay sixty dollars per game is getting great experience on their Xbox-360 PlayStation 3 -- -- PC.
It in fact I don't see that going -- to pricing error historically held together well.
And they're getting great value for the money -- getting a hundred hours of game experience for sixty dollars compared to other forms of media hits a bargain.
But in the past two years three years we've -- 800 million new consumers across North America Europe and Asia come into the marketplace.
And participate by game companies like -- session on FaceBook.
-- an entirely new audience and -- model -- they often play things first can pay for them later in an interest filling out those that are paying their often paying more than 59 dollars and sixty dollars for the game experiences.
But they're paying it by touch trucks.
And so we see massive opportunity on the second side of the marketplace that we're after -- and you know I've been a -- -- which is why we announced the -- its acquisition of.
You know John at your II -- your critics will say two things he'll say number one.
Late to do some of the restructuring efforts and know that you've announced more layoffs in the quarter as many as 15117%.
Of the workforce.
And you'll take some charges for that but also late to make this move.
Into online gaming -- how do you respond to those critics.
We don't let your theories what do companies going through transitions there's there's always a lot of voices sometimes voices when they don't quite track as close enough to be.
Able to assess what's going on but.
Just the point -- -- -- we've been talking about the move into direct consumer gaming for the better part of two years.
This past quarter we recorded -- 138.
Million dollars in direct to consumer gaming.
And you know that's really unlike most any of our competitors that's the highest quarter company's history it's a big number.
A big part of this direct consumer marketplace for example of on the iPhone.
In terms of -- we had seven of the top.
Ten revenue generating titles on the iPhone that's not wait to the party that is absolutely leading the parade.
On Verizon one of America's largest carriers we -- eight out of the top hat.
And so you know -- a perspective I think people that are looking closely enough might miss that but it is in fact where we are driving ground.
And it turned to restructuring what it is half he and hard.
-- -- Take -- poison have been looking for awhile and have to recognize the shift in the marketplace and restructure.
We took a step earlier this year -- we're finished now with the staff we're announcing tired early yesterday.
It's hard it's the right thing to do the -- business forward on -- sets -- -- for the future so.
On one hand we're reshaping our package -- its business in a way that they have to suffer great profitable growth for the future.
And we have been and continue to make investments on the direct to consumer digital side.
Which is why were a leader MySpace already in the fight this acquisition makes -- even greater -- Well I just want you to know that my oldest son turned eight years old on Saturday we scoured for the children toys -- we couldn't find any till 2000 -- And then we thank you did at GameStop.
And it was the number one gift they got this weekend so John I they've got a lot of great games out there the the -- boys are playing them regularly thanks so much for taking the time.
Thank you and good luck advantage out all right thanks so much.
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