EA Reorganizes to Cut Development Costs

In an effort to cut costs, game developer EA said late Monday that it is reorganizing the company into four divisions.

Each unit will focus on a specific group of games. One is tasked with running its extremely successful Sims franchise, its equally successful sports games titles, casual games, and other titles that do not fit into the first three categories.

No jobs are being cut as a result of the changes, EA CEO John Riccitiello said. It will however make it easier to get answers when games miss deadlines or the quality is not there, and serves to lessen corporate bureaucracy.

"This transition will be implemented over the course of the coming months," he said in a statement. "There will be more games and services for core consumers and new gamers and better focus on operational efficiency."

Fewer executives will have to sign off on new games or approve existing ones. The Sims unit had already been separated from the company, running in such a fashion to see if the new structure would work. Officials said growth for the Sims franchise was "aggressive."

Nancy Smith now leads the Sims unit, while Frank Gibeau heads the general gaming division. EA's casual games arm has Kathy Vrabeck, formerly of Activision, at the helm, and executive vice president Joel Linzner oversees EA Sports until a permanent replacement is found.