Analyst expects EA to kill franchises

News - Mirror's Edge and co not selling as hoped

EA's games aren't performing as well as the publisher might have expected this Christmas, and as a result the giant game maker is likely to cut jobs and kill off franchises in the new year as they look to cut costs - that's the expectation of Lazard Capital's Colin Sebastian.

Apparently, while Dead Space, FIFA 09 and Left 4 Dead are doing rather well, Sebastian sees Mirror's Edge, Rock Band 2 and - most notably, perhaps - Need for Speed Undercover failing to sell in the numbers expected.

"We believe further cost and franchise reductions are likely," the suit continues.

"Importantly, we believe EA is continuing to review its cost structure and franchise base, and it is possible that management will announce further cuts in headcount and the development pipeline (including existing franchises) over the coming quarters."