Shares of Electronic Arts fell 13 percent after the company posted a net loss of $310 million, or 97 cents, from a loss of $195 million, or 62 cents per share, one year ago.

Excluding special items, EA showed a loss of 6 cents per share, matching analysts expectations, according to Reuters Estimates.

The company said it would save about $50 million annually from the cost cutting action.

"Considering the slow down at retail we've seen in October, we are cautious in the short term," said Chief Executive John Riccitiello, in a statement. "Longer term, we are very bullish on the game sector overall and on EA in particular. "

Net revenue was $894 million , up about 39.7 percent from $640 million one year ago.

The company said sales were driven by sales of its major franchises including "Madden NFL", "Tiger Woods PGA Tour", "Rock Band" and new title "Spore."

(Reporting by Franklin Paul; editing by Carol Bishopric)