Electronic Arts has just released its financial results for the fiscal year that ended in March, and they show a significant shift in the publisher's revenue, with a record-breaking 12 months that's seen live services form 40% of the company's earnings.
EA reported net revenues were up by 6.2%, bringing them to $5.15 billion for the year. Net income was also up, by almost 7.9% to $1.04 billion. Revenues grew 3.6% to $1.58 billion in the fourth quarter of the year, with net income up 7.2% to $607 million in total.
Interestingly, EA reported that packaged goods fell by a staggering 14% to $1.64 billion for the full fiscal year, and it's forecasting a further drop in the current fiscal year, with an expected drop by another 9.1% to $1.5 billion. While the physical side of things fell, digital bookings were up by 16.6% to $3.54 billion. EA clearly has a lot of faith in this aspect of the business as it expects them to climb another 14.5% to $4.05 billion.
Let us know what you make of EA's earnings report, and whether all these strong results mean we'll see more investment in Switch titles. A new FIFA? Madden debuting on Switch? Share your take below...
[source gamesindustry.biz]
Comments 68
Less customers, more added on charges. Not good for gamers, but the business man in me sees what a no brainer this sales plan is.
All I want from them is that Burnout game and maybe an improved FIFA the rest I’m not fussed with.
Putting PvZ: Garden Warfare on Switch seems like a no-brainer to me.
and when the EU joins in with othercountries cracks down on lootboxes etc. the live service con will die and leave EA high and dry
Shame on so many gamers for letting this happen. Having the Fifa license has to be a huge help.
I'll just keep my streak of not buying EA games going. Lost track of how many years its been.
Plants VS Zombies please 🙏
EA is going to need it. Most their income is from the sports licences and after spending the year going on about how low the cost is to EA for the likes of FIFA ultimate team the leagues have all sat up and taken notice. I know first hand that discussion is happening in the premier league about how to take most of that cake. The current ideas include 80/20 EPL/EA income split every time a EPL player is used in any other team than their contracted to in game.
@Captain_Gonru I can see it now - Road Rash with loot boxes. Randomised chance of starting with a weapon, health or a bike. They could make so much money if they just stuck in loot boxes and microtransactions into all their old games and just re-release them.
The Pink Darth Vader cometh~ But I do welcome the distress the news will cause fans as well (although I admittedly welcome a lot of things that cause fans distress). And perhaps next time more people will learn the lesson and vote with their wallets rather than with the fanbrained hypocrisy theatre we've seen not long ago.
Any word on how the Switch version of FIFA sold?
What are line services? That jave anything to do with add-on or downloaded games?
@Rob3008 yeah i want to know if i get a new version in September
NHL and I’d never touch my PS4 again.
It shows how irrelevant Nintendo is to one of the largest publishers in the world.
Not saying they're irrelevant overall, but it's certainly worth noting.
@Rob3008
FIFA 2018
PS4: 10.99m
XOne: 2.88m
Switch: 0.75m
daaaaaymn
It sold about as much as the Xbox 360 and PS3 versions lol. Embarrassing. And people wonder why EA doesn't care about the Switch
@Menchi187 how exactly does it show that?
Can’t wait for EA’s success to die someday.
@BigKing I wish I could pull numbers out of my @ss like you do. Let me guess the source, Vgchartz?
@gortsi Release many games over the course of the year, only 1.5 of which came to Switch.
A watered down inferior port of their most popular game which sold poorly on Switch and an indie game.
Meanwhile on all 3 other platforms, they had a new record year with all their products that Nintendo doesn't have.
This means nothing to me because...third party companies still won't release anything on switch. Also it's EA
For anyone like me who isn't particularly into online gaming and GAAS it's a depressing indicator of where the industry is heading. Uni Soft, Activision and Microsoft have been clear that's where they see the future as well.
Hopefully Nintendo, Sony and the Indies can carry on putting out quality traditional gaming experiences.
Though I'm not against future FIFA games on Switch. 18 is very good. In fact it needs more sport games generally.
@Menchi187 1.5? That's some low effort trolling bro. They have repeatedly said they are happy with sales so far, they projected at least 30m switch sales by the end of the year, but I guess you must know better as EA's head of corporate strategy.
Their revenue for this financial year just went up by a tenner as they've made Burnout Revenge compatible with XB1X. A proper Burnout. Paradise Schmaradise.
@Captain_Gonru Looks like your going to get your wish. The original creator of Mutant League Football had just released the spiritual successor Mutant Football League. As for the sequal General Chaos the kickstarter fail to reach its goal but hope they release General Chaos II: Sons of Chaos one day.
So people will pay a subscription to keep playing FIFA now?
Seems like everybody is trying to turn whatever they're selling into a subscription plan these days.
Who's EA?
@Pod : That's the reason why I bought Vegas instead of the Adobe suite. I'm happy to buy the latest version of software when I need to, but I'm not paying a monthly fee to "rent" software, especially if it's not a source of income.
@gortsi vghartz indeed. Don't see the problem. The less than 10% of PS4 sales numbers look accurate to me? You believe the Switch version was a success?
The preferred way to play the game?
It sucked bro.
I would say good on their accomplishments but considering recent events like Lootboxfront 2, Rushed-effect Andromeda, and a soon to be Final Wishes Anthem by Bioware, I simply cant do it with pride. Ea needs to get their sense on how honest-to-good video games work sooner rather than later. Because the way they're providing players nowadays to thinking that single-player gaming is all but dead and telling you that microtransactions is the new normal, you swear this is just malicious intent.
@BigKing according to EA, it was. And please stop using Vgchartz for anything, it's notoriously unreliable and some numbers are completely made up. If it sucked for you, good for you. You're not speaking about anyone else though
Even though we own FIFA 18 on our PS4, I've been keeping my eyes open for a nice sale on it for the Switch. I would enjoy the game more on the go despite it lacking all the features and modes.....especially now that the World Cup Mode is coming!
@BigKing
It was a first year switch game that wasn't on par with other systems. I'm sure it didn't sell as well as the others for having both a smaller install base than other systems at the time, and for other people similar to me unwilling to pay for a version that didn't offer what the others had.
EA isn't the only 3rd party out there. When they get on Bethesda levels of loyalty then I'll think about acknowledging EA then.
@BarFooToo Very interesting! I don't doubt that at all, and yeah, that will take a MASSIVE bite out of EA. I'd love to see that. Not to destroy EA entirely but to see them have to actually put effort in. I know they can produce quality when they put effort in....they just do so very rarely.
@XCWarrior I'm not sure "gamers" are the problem. EA games probably appeal to non-gamers more than most other publishers (all sports games, plus Star Wars is going to appeal to a huge audience that may not be interested in video games overall.) So it may be they have a unique business model all their own due to their mass market appeal outside the rest of the industry's market.
Though I'd also say their revenues may be up not just due to nickel and diming DLC and loot boxes, but just having released a Star Wars game coinciding with a film, in general, plus running good old fashioned good value sales. I've bought several older EA games digitally this year due to very good prices, and I haven't bought EA games in YEARS. Plus EA Access on MS platform is probably popular. Sometimes offering value to consumers actually shows up in revenues due to wider sales...go figure.
@Captain_Gonru general chaos remake would be ace.
Not surprising. They have a bunch of games that are fun to play online. They at their best when you can just play a game of FIFA/Madden at night with friends (or fam) who live far away. That is where EA games shine.
The problem still on Switch's vaporware online platform. Nintendo need to fix that first. And no idea how that will happen when they insist on using the garbage phone APP for chat.
EA should just do Unravel 2 on Switch. I doubt we will see Madden on Switch this year.
Basically just numbers backing up that their shady workings of a heap of pre-planned left out DLC from games for additional charges, on top of honest DLC that comes later, combined also with their loot box shenanigans equals vastly more digital profit. They just show they can milk stuff very well while releasing less new content and less new physical stuff as well.
Ok, great. Here is hoping switch gets more than fifa...
In marketing, I can tell you right now this isn't news. I deal with 5 contracted video game publishers and 4 of them are less concerned about the "gamers" nowadays, stating they're too smart for their own good. They oft want our company to target with brand recognition and scoop up the "loyalty" to their personal image of owning a game and it's more elitist contents.
In other words, they want big dumb whale consumers as opposed to more frugal gamers.
Why bother developing games for Switch when the return on investment will be less than the additional money you can make growing that 40% of your business on other platforms.
Telling you people, we aren't getting FIFA this year.
@BigKing Now those numbers are just sad.
Cya
Raziel-chan
@YummyHappyPills nah If that was the case they wouldn't bother with the World Cup update.
@BigKing
You're having a disaster here. Again.
1) You're quoting VGchartz
2) The Switch version of FIFA is very good
3) EA allowed themselves to be quoted as satisfied with the sales.
Research 'bro'.
@EasyDaRon
Hopefully so. There's enough games out there now that I haven't played, and want to replay, to last me forever anyway but large parts of the industry are definitely moving in a direction I'm not fussed about.
Lol let's not use Vgchartz data here. There sales information is complete garbage that is pulled right out of their...you know what...
With these kind of results, there is no reason why EA won't stop their loot box tirade, Star Wars Battlefront 2 backlash or not. I feel sorry for all the casual gamer football (FIFA/Madden) fans out there who are suckered into spending hundreds if not thousands of real world dollars/euros/pounds for loot box-esque card packs, all because they can interact with their favorite players on a TV screen.
Let's see if Bioware can rebound with Anthem. If it doesn't become the next Destiny, then I worry about their safety as a studio. Visceral's grave must scare the crap out of the Bioware developers.
@gortsi
Yeah, EA updating the Switch version of FIFA 18 with the World Cup Update tells me that there is a decently-big active FIFA userbase on the Switch. They could have easily ignored the Switch version like they did with the Xbox 360/PS3 "legacy" versions of the game.
@westman98 I think that with Konami dropping PES 2019 on current-gen only FIFA will be following as well. What people forget is that EAs biggest problem with FIFA on the Wii u, aside from lacklustre sales, was the fact that they couldn't shoehorn FUT into it and thus we only got FIFA 13, with 14 and 15 being on the Wii but not on the Wii U! Now that they've managed to get FUT going, I think 2019 is a given and unless sales are disastrous possibly even more. Even the Vita got 4 FIFA games FFS! The bigger question is if they will bother with anything else. You'd think games like Sims 4 would be a no brainer, what with it already having console versions and all previous Sims games being on Nintendo, but nothing yet
Part of me feels bad for the EA micro transactions hate, Rockstar made about 8 billion dollars on shark cards but they get all the love
@YummyHappyPills I feel it goes the other way. If their core business is now services platforms, getting their game content onto EVERY platform will be a priority to be able to pull services platform revenues from all potential corners. The games themselves are just the free sample.
@XCWarrior stay salty.
This is the way the world works.
@Desa LOL "of loyalty" now that's rich.
£¥€< EA
(sry kids..)
Even if FIFA 18 did only sell 0.75m copies that's still really good for such a lazy low budget port. We'll be getting FIFA 19 on Switch for sure. And hopefully this next version will have parity with the others, for EA's sake.
@gatorboi352 Not salty, just feel bad there are so many sheep out there that hand over their savings to these crooks. All I care is that I'm not one of them. You do you, whatever floats your boat.
@NEStalgia Anyone who plays video games - from the veterans, to the mobile people, to the toddler who steals your phone to play the PBS kids app - are all gamers.
EA owns the rights to some series I love or have loved in the past before certain changes... Star Wars(pre Disney reboot) and Bioware's Mass Effect Trilogy. I hate EA's greedy business models with a passion.
But I would pay for a Mass Effect Trilogy port to Switch in a heartbeat.
@Rob3008 Almost 1 million. In EA standards that means okay, not great.
Can I just say that I would totally buy Plants Vs. Zombies: Garden Warfare again if it was release on Switch.
EA you can take your services, and shove them!
@electrolite77
All evidence points to another Switch disaster. The sales are worse than the graphics and FIFA 18 on Switch looks like Sensible Soccer.
'FIFA 18 on Switch Was Less Than 3% of Sales in UK'
All sports games flopped on Nintendo consoles since the N64. Don't be mad son.
@BigKing
"Looks like Sensible Soccer" You're doing that flapping thing again when it gets pointed out that you're making stuff up.
"FIFA 18 on Switch Was Less Than 3% of Sales in UK'"
What's the UK userbase of the Switch compared to PC, PS4, XB1, PS3 and 360 combined?
" All sports games flopped on Nintendo consoles since the N64."
Ooooh. That surely has to right doesn't it? Well, almost. Keep plugging away, son.
http://m.uk.ign.com/articles/2009/07/17/ea-dominates-wii-sales
Oh I remember for me the BEST EA-related game was Clive Barker's Undying.
That is one of the MOST atmospheric and brilliant games ever created!
Now they just make crap on crap on crap.
@electrolite77
'Sports games are doing great on Nintendo consoles.'
You mean FIFA/PES/2K/Madden? They are doing terrible
'Dude, look at this article from 2009 about EA Sports Active and PGA Tour'
Holy christ. And you know this was the best you could find too. That's sad man.
@BigKing So golf doesn't count as a sport?
@Captain_Toad I like it when people who totally missed the point ask rhetorical questions as if they say something really smart.
@BigKing Ok, then what sport games are we looking for to light the switch on fire?
@Captain_Toad There won't be any. My whole point is that sports games flop on Nintendo consoles. The fact that Nintendo fanboys grasp onto PGA Tour 2010 further proves my point. That's the only sports game that sold more than on other consoles and only because of the motion controls.
@XCWarrior why do they have to be sheep though, just because they are inclined to do something you otherwise wouldn't?
@BigKing
So now you're replying to things i didn't say.
Stop making things up and you may get taken seriously.
@electrolite77 You didn't even read the article on the link you posted. You just read the title and decided it was a good idea to post it here.
This is a sad day for humanity.
I am disappointed in you, son. Now grab me a beer.
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