Shares of
EA, which is based in Redwood City, Calif, fell $148, or 85 percent, to $16 in extended trading after the earnings report
EA said in November it was cutting its work force by 17 percent, or 1,500 people, as it tries to align its business with transformations in the industry Game development costs are skyrocketing, forcing publishers to sell blockbuster amounts of games to justify the expenses In turn,
EA is creating fewer games â?? cutting out projects it is less certain can become big hits
"They are certainly not passing through all of the cost savings," Wedbush Morgan analyst Michael Pachter said in a telephone interview
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Electronic Arts Inc. (ERTS)