Profits down at EA

Video game producer Electronic Arts (EA) has revealed its profits fell during the first quarter of the year, but claimed 2014 is going to be a better year for the company.

In the three months to the end of March, EA had an income of $323 million (£208 million), which is down 19 per cent on the same period a year ago.

EA claimed one of the reasons for the drop in its profits between January and March is because the next generation of consoles are being released soon and consumers are waiting for this rather than spending money on games now.

John Riccitiello, who had been chief executive since 2007, resigned from his post earlier in the year as a result of the falling share price of the firm.

Its latest major release, the new SimCity, has also been hit by a range of problems such as issues with servers that have led to frustration for gamers.

Despite the fall in profits, the positive outlook for 2014 led EA's share price to rise by almost 15 per cent in today's (May 8th) trading. Stocks were up by 2.73 per cent at 15:58 BST.

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