Capcom Reports Major Losses

More economic bad news in the gaming industry - Capcom has reported that their net income has dropped a whopping 95 percent since last year.

Personally, I don't really understand how their net income dropped so far since their net sales are only down 13.4 percent.

All of these gaming companies posting such losses recently could be bad news for gamers. With profits down, companies tend to be less willing to try new IPs which means more sequels and more franchise games.

EA Loses Money

Electronic Arts has posted a significant loss for their third Quarter - $641 million! Last year, EA posted a $33 million loss in their third quarter.

With the loss, EA plans to lay off 1,100 workers(11% of its employees) and close 12 of its facilities.

Analysts say that EA actually made more money this year than last, but they had predicted a much bigger gain and had increased their spending as well - leading to the loss.