While 2009 was a better year for EA, there’s still room for improvement, considering the gaming behemoth took a hit on its profit margins yet again. Less severe of a hit compared to 2008, but still significant. As such, EA is cutting costs wherever possible, beginning with its Partners label. In a conference call with analysts, COO John Schappert revealed that the company is scaling back on its distribution efforts for third-parties, instead placing a renewed focus on internal EA titles. Makes sense – that’s where the money is, after all.

While we have great relationships with our partners, we are modeling a reduction in our distribution business as we concentrate on higher-margin EA owned titles and digital initiatives.

EA was quick to point out that its well-received Partners program is not being scrapped entirely. Notably, it still plans to publish external titles under the label when appropriate, such as Crysis 2 and a yet-to-be named Epic shooter. However, Rock Band may be on its way out, seeing as there was no mention of the franchise on its latest release schedule. Going forward, expect a more stringent approval process for studios that turn to EA for marketing aid.

Follow this author on Twitter.