14 DAY TRIAL // Electronic Arts CEO John Riccitiello stepped down from his position yesterday and Wedbush Securities analyst Michael Pachter believes that decision was forced by the board of directors due to recent events that happened within EA.
EA boss John Riccitiello has been the company's CEO since 2007 and has prompted a new innovation spree within the different internal studios that resulted in all sorts of successful or less successful games.
Yesterday, the executive confirmed that he's stepping down from his position as CEO due to the lower-than-expected sales results of which he is completely accountable, according to his resignation letter.
According to Wedbush Securities analyst Michael Pachter, that excuse is quite weak and most certainly isn't the true reason why Riccitiello is stepping down.
Pachter says that the resignation was certainly demanded by the board of shareholders that didn't approve of the recent departures from within the company and the less-than-successful games.
"If you read his resignation letter, it was clearly prompted by the board," he told Eurogamer.
"I think that missing guidance is a pretty weak excuse to fire him, particularly since the industry was down 24 per cent last year, and EA managed to gain share and grow its digital business."
According to the analyst, the actual reason was the lackluster Star Wars: The Old Republic, which meant a pretty big failed investment, not to mention the departures of veterans such as BioWare founders Dr. Ray Muzyka and Dr. Greg Zeschuk, and the fact that the recent PopCap acquisition has yet to yield any new products.
"My guess is that the board couldn't get over the Star Wars disaster (one of the reasons for buying Pandemic/BioWare), and the departures of the doctors, the departures of all of the PlayFish guys, and lackluster social and PopCap results just tipped them against him. The missed guidance was the straw that broke the camel's back."
While Pachter may have a point, it's unlikely that the actual reason behind Riccitiello's resignation will be made official.