"I'm extremely honored to be chosen for this role," Probst told the paper after his election to a four-year term. "I've had a lot of sports experience as a CEO. I've had a very successful business career. I know how to work collaboratively with people. I know how to build and develop a team."

Probst replaces Peter Ueberroth, former Major League Baseball commissioner.

Probst will likely spend most of energy at the USOC trying to convince the International Olympic Committee to bring the 2016 Olympics to Chicago.

I wonder if Peter Moore is bummed?

USOC names Probst from EA Sports as its chairman [The Gazette]

At Elevation, Riccitiello was responsible for the private equity firm's video game division and oversaw the merger of developers Bioware and Pandemic.

Probst, a 23-year veteran of EA, will continue as executive chairman of the board of directors and take solace in his $37 million worth of EA stock.

Sweet release after the jump. Michael McWhertor

John Riccitiello Named Chief Executive Officer of EA

Larry Probst Continues as Executive Chairman of the Board of Directors

REDWOOD CITY, Calif.—(BUSINESS WIRE)—Electronic Arts today announced that effective April 2, John Riccitiello will serve as the company's Chief Executive Officer and will join the Board of Directors. Larry Probst will continue as Executive Chairman of the Board of Directors.

Mr. Riccitiello served previously as EA's President and Chief Operating Officer responsible for global publishing, online and other corporate functions before leaving the company in 2004.

"We're happy to welcome John back as EA's new CEO," said Larry Probst. "His skill and vision as an executive and his experience in our industry have earned him the respect of our employees and shareholders."

"Leading EA has always been my dream job and I am truly honored that Larry and the Board have given me this opportunity," said John Riccitiello. "This is an extremely well-run company driven by outstanding studio and publishing teams. They've also made strategic investments in new platforms and markets that will help extend EA's industry leadership in the years ahead."

After leaving EA in 2004, he became a co-founder and Managing Partner at Elevation Partners. Among his responsibilities at Elevation, John oversaw the group's videogame business. Mr. Riccitiello also serves on the board of directors of Hyperion Solutions Corporation.

Some statements in the future tense contained in this release are forward-looking statements that are subject to change. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause the Company's results to differ materially from its expectations are described in the Company's Annual Report on Form 10-K for the year ended March 31, 2006 and Quarterly Report on Form 10-Q for the quarter ended December 31, 2006. These forward-looking statements speak only as of the date of this release and Electronic Arts assumes no obligation and does not intend to update these forward-looking statements.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, the company develops, publishes, and distributes interactive software worldwide for videogame systems, personal computers, cellular handsets and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS(TM), EA(TM), EA SPORTS BIG(TM) and POGO(TM). In fiscal 2006, EA posted revenue of $2.95 billion and had 27 titles that sold more than one million copies. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.

All trademarks are the property of their respective owners.

The most intriguing comments from Probst on the matter come after the CEO says that the Playstation Portable needs to be cheaper and in a different form factor for EA to change their current, port strategy for the portable.

I think what moves the needle is a new form factor that's smaller than the existing unit, at a lower price, and hopefully that price is $100 lower. This is pure speculation, we don't know what Sony's plans are. But it would not be hugely surprising if they had that lower priced unit at $149 and then a more fully-featured upscale unit that retails at $249 or $299. Again, that's pure speculation. We don't have any inside information on that.

Probst goes on to say that it would help to have more interoperability between the PSP and "other platforms". Amen. Let's get that PS3 PSP hook-up in overdrive already.

In this chunk of the interview Probst also touches on EA's next break-out hit (Spore, of course) and the chances of Warhammer Online posing any sort of threat to the MMO goliath World of Warcraft. Brian Crecente

Loot: The Larry Probst Interview, Part II [Newsweek]

No, I'm not being sarcastic, I mean it. That's how you get it done, you know your shit and you don't let a scowl scare you away from a question.

Take for instance this fantastic question and follow up by one N'Gai Croal, of Newsweek, during his recent interview with Electronic Arts CEO Larry Probst.

Here's my first question. PS3 is supply constrained and will likely remain so until early 2008. 360 demand is—

Whoa, whoa, whoa. Early 2008?

You don't think so?

I don't think they'll be supply constrained that long. You think all through 2007 they'll be supply constrained?

Well, looking back to the PS2 launch, Sony shipped a million units for the Japanese debut, most of which sold in the first 48 hours. But for the Japanese launch of PS3, they only shipped around 80,000 units, more than ten times fewer machines. So they're nowhere near meeting demand in Japan. In North America, Sony shipped just under 500,000 units for the PS2 launch, but only 200,000 units for the PS3 launch. So they don't have enough supply to meet demand here. Sony launched in Asia with less than 20,000 units. And early next year, they have to start stockpiling units for the European launch in March 2007—assuming that date doesn't slip. So we're looking at four territories where supply probably won't meet demand, and by the time Sony starts to catch up, it'll be holiday 2007, where the combination of big AAA games and gift-giving will increase demand even more.

So you're not believing their projection of 6 million units shipped by the end of March?

That's right, Croal knows his shit and don't forget it. Now hit the jump to watch a master at work.

You absolutely have to read this entire interview, but here are some of my favorite bits of Croal-flavored schooling.

On why EA should have made more Wii games:

But as long as PS3 remains supply constrained, and as long as Xbox 360 demand is falling short of Microsoft's projections, that leaves Nintendo's Wii as the only platform that has both high supply and high demand. Yet the bulk of EA's AAA titles are oriented towards the PS3 and the 360. How have you adjusted your development plans in light of where things stand right now?

We have two titles at launch for the Wii. We will have five or six in the market by the end of our fiscal year [March 31, 2007.] We have a number in the low to mid-teens planned for [the next] fiscal year. I think we're going to catch up pretty quickly in terms of a broader portfolio on that platform.

On Zune bending over users to satisfy Universal Music Group:

Universal Music Group, the largest record label in the world, gets a dollar in royalty from every Zune digital media player that Microsoft sells, in addition to the lion's share of revenue from every one of its songs—

Wait a minute. They get a dollar for every Zune?

Yeah.

Do all of the music companies have that deal?

As far as I know, it's just Universal Music Group.

Why do they get that?

That's a good question for Microsoft. Now as I was saying, your company is the world's largest videogame publisher, yet by contrast, you pay Microsoft a royalty for each and every one of the games you publish for Xbox 360. Given the importance of brands like EA Sports, The Sims, and Need For Speed, shouldn't you expect similar terms for the Xbox 360 as were granted to Universal Music Group for the Zune?

Good idea. I'll take that up with [Microsoft president of entertainment and devices] Robbie Bach the next time I see him. But in all seriousness, Microsoft has been very supportive and a really good partner as a hardware company. We're pretty satisfied with that relationship. So you're telling me that the Warner guys don't have that same deal?

Not as far as I know.

This interview had to, HAD TO, involve at least one spit take. Check back later for parts two and three which delve into why EA hates the PSP so much and Probst's take on Microtransactions and innovation. Brian Crecente

Loot: The Larry Probst Interview, Part I [Newsweek]

Electronic Arts CEO Larry Probst was practically crowing today, it seems, over the expected revenue the company expects to be earned from the in-game advertising found in Need for Speed Carbon.

He told a gathering in New York City that the game will likely earn $4 to $5 million in in-game advertising for this quarter alone. That revenue stream is split between static and dynamic advertising, he said.

I wonder if it's coincidence that a game that earns most of its profit from ad revenue and not sales is getting mostly crappy reviews. Game Rankings shows that the plethora of ports are scoring in the low 60s to high 70s.

Maybe we can get to a point where EA makes crappy spin-offs that are entirely paid for by advertising and never come to market. Brian Crecente

EA sees $4-5 mln ad rev from game [Reuters]

Larry sits upon his throne made of excess Catwoman stock at 114 on the Forbes 500 list of top paid CEO's, but at 30 on the performance versus pay 189 list. I'm sure Larry will bring up the latter at his next review.

Forbes pegs Probst's actual cash compensation salary at around $680,000, but his massive stock option allocations make up the rest of the EA fat cat's annual gross. So don't get mad at Larry for those $60 versions of $50 games you bought last year, he's just scrapin' by.

Forbes: EA's Probst Has $12.6 Million Compensation, Good Performance [Gamasutra]
Lawrence F Probst III Details [Forbes]