Electronic Arts had to deal with falling sales and profits last quarter. This was triggered by a drop in sales of full versions, while the live service business dominated.
Electronic Arts grants the latest annual report a look at the publisher’s financial results. There was a significant decline across the board in the three months of the last fiscal quarter, which ended on June 30, 2024.
Net sales fell by 13 percent compared to the previous year to 1.66 billion US dollars. The bottom line was a net profit of 280 million US dollars, which corresponds to a decrease of 30 percent. Electronic Arts is nevertheless delighted.
Sales of full versions collapse
As the annual report progresses, it becomes clear that Electronic Arts is now heavily dependent on live service strategies and their monetization.
Electronic Arts’ net bookings fell 20 percent compared to the same quarter last year, reflecting a 58 percent decline in full-game sales.
Electronic Arts hardly brought any new games to market in the last quarter. The two games released were “EA Sports F1 24” and “Tales of Kenzera: Zau”. The latter title reportedly did not meet expectations. The studio responsible for the game made layoffs.
A year earlier, games like “Star Wars: Jedi Survivor” and “PGA Tour” were on the release list and apparently found significantly more buyers.
The declines were apparently factored in: According to Electronic Arts, the results for the first quarter of the business exceeded the publisher’s expectations. With the launch of “EA Sports College Football 25” and upcoming sports games such as “EA Sports FC 25” and “Dragon Age: The Veilguard”, the rest of the year will have significantly more momentum.
In line with this topic:
Live services account for 75 percent of net bookings
In contrast to game sales, revenues from live services remained almost stable, decreasing by only seven percent compared to the first quarter of the previous fiscal year.
Electronic Arts also announced that live services accounted for 75 percent of net bookings over the past twelve months. The publisher is therefore heavily dependent on such revenue.
For the full fiscal year, Electronic Arts expects net revenues of between $7.1 billion and $7.5 billion, net income of between $904 billion and $1.1 billion, and net bookings of between $7.3 billion and $7.7 billion.
“EA Sports College Football 25” did well. In the first week alone, five million unique players gathered. Another 500,000 played via the EA Play trial version.
“Our focus on delivering bigger, bolder and more connected experiences to our players has never been stronger and is exemplified by the record-breaking launch of EA Sports College Football 25 as we head into another historic Q2 sports season at EA,” EA CEO Andrew Wilson said of the results.
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