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It’s been a rough year for Electronic Arts. Last Halloween, the Redwood City, California-based publisher had a share price of $61.12 and was riding high on the acquisition of superdeveloper BioWare/Pandemic. Today, the company’s stock ended at $27.73, after a steady decline accelerated by the past month’s economic bloodbath on Wall Street.

Unfortunately for many EA employees, 2008 is about to get a whole lot rougher. Today, Electronic Arts announced that it is laying off six percent of its global workforce as part of a company-wide cost-reduction plan. With a payroll of about 9,000 worldwide, the layoffs will affect approximately 540 people. In a conference call this afternoon, executives said the layoffs will come from EA’s publishing and corporate divisions, as well as from its various studios and labels.

Today’s battery of pink slips may not be the last. Executives also said that EA “will manage head-count decisions aggressively going forward.” The company plans to reduce hiring in high-cost territories, and will expand operations in “lower-cost locations.”

By EA’s own estimates, the layoffs announced today will save it more than $50 million annually–money the company sorely needs. Today, EA announced a greater-than-expected $310 million loss, or 97 cents per share, during the July-September quarter. During the same period last year, the company lost $195 million, or 62 cents a share.

The loss is doubly harsh because it comes in the face of a 40 percent surge in quarterly revenue for EA. For the quarter, the second in the company’s fiscal year, earnings totaled $894 million, up $254 million from the same quarter in the prior year. Best-sellers for the period include Madden NFL 09, with 4.5 million copies sold worldwide, and Spore, with 2 million units sold worldwide. Another high point was the launch of Warhammer Online: Age of Reckoning, which now boasts 800,000 players on 1.2 million units sold. NCAA Football 09 sold 1.8 million copies, and Tiger Woods PGA Tour 09 sold 1.9 million–the same number as Mercenaries 2: World in Flames. Combined, Rock Band and Rock Band 2 moved 1.5 million units during the quarter.

In a statement, EA CEO John Riccitiello put a brave face on things. “Considering the slow down at retail we’ve seen in October, we are cautious in the short term,” he said. “Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband Internet connections. EA is well-positioned to benefit from these technology drivers due to the strength of our creative studios and our broad collection of game properties.”

Unfortunately, the markets were not as upbeat as Riccitiello. As of press time, EA stock was down nearly 14 percent in after-hours trading.

[UPDATE] In the conference call, Riccitiello and other executives laid out the reasons for the major shortfall. One major factor was the postponement of Harry Potter and the Half-Blood Prince, which was slated for a late summer release to lead up to its film tie-in’s November debut. When that film was suddenly delayed until summer 2009, EA was forced to sit on a nearly finished game it had already spent million marketing. As a result, EA had to move $120 million of revenue into its next fiscal year. Of that, roughly $48 million was expected in the July-September quarter, when the game was slated for release.

[UPDATE 2] Besides international exchange rate issues, which cost EA 12 cents a share, the other big reason for the shortfall is EA’s lavish investment in future ventures. The company spent over $100 million in expanded development costs, and invested a further $150 million in building a direct-to-consumer download business. The company also spent $35 million in upfront expenses for its EA Partners deals. Those include the recent publishing agreements with Epic Games, id Software, and Grasshopper Manufacture, as well as the just-announced agreement to distribute MTV and Harmonix’s rhythm game based on the music of The Beatles.

Sony wasn’t joking when it said last week that it was in for a grim fiscal year 2008. As a portent of things to come, the Japanese electronics company revised its profits projections downward an additional 39 percent for the year, which runs April 1, 2008 to March 31, 2009, in all putting them off a full 59 percent from last year’s performance.

Keeping in line with those expectations, Sony said today that net profits for the July-September quarter slid 72 percent, falling to ¥20.8 billion ($213 million) from ¥73.7 billion ($755 million) a year ago. Total revenue stood at ¥2.07 trillion ($21.3 billion), off half a percentage point from last year. Operating income skidded 90 percent year over year, falling to ¥11 billion ($113 million) from ¥111.6 billion ($1.14 billion).

Sony’s bread-and-butter electronics segment, which accounts for the bulk of the company’s revenues, saw a .6 percent decline in sales for the reporting period, dipping to ¥1.7 trillion ($17.4 billion). The decline comes despite stronger sales of the Bravia LCD TVs and Vaio PCs. As the company noted last week, the yen’s strengthen in the global market as well as tighter profit margins due to increased competition contributed to the company’s lackluster performance in this area.

Gamers will be pleased to know that Sony’s games segment actually saw some gains during the period. For the quarter, Sony’s games arm generated ¥269 billion ($2.76 billion), a 10 percent increase year over year. Naturally, the publisher attributed its performance to rising sales of the PlayStation 3 and PSP, with the former shifting 2.43 million units and the latter moving 3.18 million systems. PlayStation 2 sales continued to dwindle during the quarter, falling to 2.5 million units.

Of note, PS3 sales stood 200,000 units higher than those of the Xbox 360 over the same stretch. Last week, Microsoft said that the Xbox 360 sold 2.2 million units during the comparable period of time, which was a 20 percent increase year over year. To date, the PlayStation 3’s global lifetime sales stand at 16.85 million units.

Though the game’s unit saw increased revenue for the quarter, it remained in the red. Sony’s games arm posted a ¥39.5 billion ($405 million) operating loss for the July-September period, an improvement over the ¥96.7 billion ($991 million) deficit it posted for the same period last year. Sony noted that this tightening of losses was due to a decrease in production costs on the PS3, an increase in software sales for its flagship console, and strong hardware sales of the PSP.

Not unsurprising considering the global economic crisis, Sony’s financial services segment took a significant hit during the quarter, seeing an operating loss of ¥25 billion ($256 million) and falling revenues of ¥100 billion ($1.02 billion). Conversely, the movie business performed quite well–with sales increasing 3.4 percent to ¥196 billion ($2.00 billion)–on the strength of Hancock, Step Brothers, and Pineapple Express.

Blizzard Entertainment is just over two weeks away from releasing the second expansion pack to its genre-dominating massively multiplayer online role-playing game World of Warcraft, Wrath of the Lich King. And despite increased competition this year from the likes of Funcom’s Age of Conan and EA Mythic’s Warhammer Online, Blizzard has managed to continue to stave off WOW fatigue to usher in that expansion’s arrival.

Today, the Irvine-based developer said that its worldwide subscriber base had exceeded 11 million. Adding a little color to that number, WOW’s citizenship would rank just higher than the total population of Greece, according to the Central Intelligence Agency’s World Fact Book.

As revealed in Blizzard parent company Vivendi SA’s recent financial reports, World of Warcraft has been on the cusp of hitting 11 million subscribers since July. Today’s milestone comes just over 10 months since Blizzard touted WOW’s 10 millionth subscriber in January.

As Blizzard uses a variety of payment plans in different countries, the publisher defines “subscriber” thusly: “World of Warcraft subscribers include individuals who have paid a subscription fee or have an active prepaid card to play World of Warcraft, as well as those who have purchased the game and are within their free month of access. Internet Game Room players who have accessed the game over the last 30 days are also counted as subscribers. The above definition excludes all players under free promotional subscriptions, expired or cancelled subscriptions, and expired prepaid cards. Subscribers in licensees’ territories are defined along the same rules.”

World of Warcraft subscribers hail from a number of countries and regions, including North America, Europe, China, Korea, Australia, New Zealand, Singapore, Thailand, Malaysia, Chile, Argentina, Taiwan, Hong Kong, and Macau. Most recently, WOW was launched in Russia and Latin America.

Wrath of the Lich King will launch for the PC and Mac on November 13. For more on the WOW’s second expansion, check out GameSpot’s previous coverage.