UPDATE 2-EA reorganizes into four business units

(Adds analyst comment)

By Scott Hillis

SAN FRANCISCO, June 18 (Reuters) - Electronic Arts Inc. (ERTS.O: Quote, Profile, Research, Stock Buzz), said on Friday it will reorganize the world's biggest video game publisher into four units, in an efficiency drive by its new chief executive.

Under the plan by CEO John Riccitiello, EA will consist of units that focus on sports, casual games, its "Sims" virtual dollhouse franchise, and other games.

EA said the changes, which will not involve job losses, should help it save money at a time when the cost of developing a top-tier game can run up to $20 million.

"It makes a lot of sense. It streamlines the company," said Todd Greenwald, an analyst with Nollenberger Capital Partners.

"It goes with Riccitiello's desire to make people more accountable. When a game misses a deadline, when the quality is bad, he wants one person to explain why," Greenwald said.

Riccitiello, the company's former chief operating officer who left in 2004 and rejoined in April, said last month that he intended to realign the company and improve its ability to act quickly.

"He's had a very strong and aggressive change agenda and what he's been framing as a challenge to the management team is that we are facing a market that is incredibly diverse and complex," said Frank Gibeau, head of the new EA Games unit.