John Riccitiello, Chief Executive Officer of Electronic Arts, the second largest producer of video games in the U.S. announced his resignation from the company. His last day in office will be March 30.
“This is a tough decision, but it all comes down to accountability. The progress EA has made on transitioning to digital games and services is something I’m extremely proud of. However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA’s shareholders and employees expect better and I am accountable for the miss,” Riccitiello said in the resignation letter.
“He lasted a pretty long time, given that the company hasn’t really performed that well,” said Edward Woo, an analyst at investment bank Ascendiant Capital Markets in California. Many new games launched during the reign of Riccitiello, such as “Medal of Honour” or “Star Wars” did not achieve the desired results. Sales of video game in retail stores in America fell by 22% last year to $13.3 billion, according to research firm NPD Group.
Chairman Larry Probst, CEO of EA until 2007, when Riccitiello took over as CEO, will lead the company until the board members will find a replacement for John Riccitiello, according to a statement from the company. “We thank John for his contributions to EA since he was appointed CEO in 2007, especially the passion, dedication, and energy he brought to the company every single day,” said Probst in a statement. Peter Moore, EA’s COO (Chief Operating Officer) is on the list of those who might be selected to fill the position of CEO, said Edward Woo.
EA shares, number two on the U.S. video game market fell to its lowest level in three years after the announcement of resignation and the drop, again, of estimates on financial results in the current quarter, according to Bloomberg.
The message from John Riccitiello announcing his departure from Electronic Arts is on the official EA blog.
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