UPDATE 1-EA closing Chicago studio, 146 jobs affected

(Updates with details in paragraphs 4-8, stock price in paragraph 9)

SAN FRANCISCO Nov 6 (Reuters) - Top video game publisher Electronic Arts Inc ERTS.O said on Tuesday it is closing a facility in Chicago that worked on its "Fight Night" and "Def Jam" titles, affecting 146 jobs.

The jobs were included in the 350 positions that EA said last week it would shed as part of a restructuring that also involved closing a facility in Chertsey, England.

The Chicago closure was not announced at that time due to a death at the studio, according to a memo to staff from EA Games chief Frank Gibeau that was obtained by Reuters.

In the memo, which was confirmed by an EA spokesman, Gibeau said the studio had tripled in staff since 2004 but was not on track to be profitable until fiscal 2011 or later.

"The location has grown dramatically in the past three years while revenue from the games developed there has not," Gibeau said.

"Each team is responsible for staying on a reasonable path to profitability. Sticking to that strategy is what gives us the financial resources and flexibility to take risks on new projects," Gibeau said.

In its quarterly earnings report last week, EA said the closures would result in charges of up to $110 million but would save the company up to $30 million a year.

EA had a "very aggressive" program to help affected employees find new jobs, EA spokesman Jeff Brown said.

Shares of Electronic Arts fell 60 cents, or 1.02 percent, to $58.16 at mid-afternoon on Nasdaq. (Reporting by Scott Hillis, editing by Jeffrey Benkoe, Richard Chang)