The Chief of video game giant Electronic Arts John Riccitiello has resigned from his position, taking complete blame for not being able to meet the expected target for the current quarter. Riccitiello will no longer work in the capacity from next month. In Riccitiello’s absence, former CEO and current chairman of the board Larry Probst will serve as the company’s interim chief.
Riccitiello took the helm at the company in April 2007. During his tenure, the company’s share value has decline considerably, but it is not his fault, not entirely at least. After the global financial crisis, the entire gaming industry, along with other major industries, had to suffer huge losses, and just like EA, many companies are still struggling to regain the glory they used to enjoy in the pre-crisis era.
In his resignation letter, Riccitiello mentioned the company’s achievement of making a name in the digital industry and wrote, via Guardian:
“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.”
Probst has accepted the resignation. He said of Riccitiello:
“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. John has worked hard to lead the company through challenging transitions in our industry, and was instrumental in driving our very significant growth in digital revenues. We appreciate John’s leadership and the many important strategic initiatives he has driven for the company. We have mutually agreed that this is the right time for a leadership transition.”
When the company released its quarterly report for the holiday season earlier this year, the report was not very much pleasing for the investors as the company had fallen behind expectations. Riccitiello’s resignation has come in the line of the fact that the company is expected to once again fall below expectations when it releases report for its current quarter.
Photo: GamingGrad
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