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FIFA, Bad Company 2 push EA sales to $815 million

Publisher beats projections, says digital offerings are "driving the business," account for nearly 22 percent of revenues in first quarter.

Last month, the chorus of vuvuzelas fell silent in South Africa as Spain claimed its first World Cup, but the droning echoes of the instruments have carried over into Electronic Arts' first quarter financial results. The publisher today reported boosted revenue for the three months ended June 30, citing 2010 FIFA World Cup South Africa, Bad Company 2, and FIFA 10 as its best-performing games for the period, with all three selling more than 1 million copies to gamers.

2010 FIFA World Cup scored big time for EA.

2010 FIFA World Cup scored big time for EA.

Total revenues for the quarter reached $815 million, up from $644 million for last year's first quarter, with net income of $96 million. Both of those figures exceeded the publisher's previous projections. While sales in EA's distribution business were down, packaged goods publishing jumped from $462 million to $586 million, with digital revenues ramping up to $176 million from $117 million.

With digital offerings responsible for nearly 22 percent of the publisher's revenues, Electronic Arts CEO John Riccitiello singled them out as "driving the business." Bad Company 2 and iPad titles like Scrabble received particular praise, with EA's increased presence in social gaming also playing a part. Last year, Electronic Arts boosted its digital business with the acquisition of Playfish, maker of microtransaction-driven online games like Pet Society, Restaurant City, and Country Story.

In a post-earnings conference call, Riccitiello said EA estimated the physical gaming business in the west was down 5 percent year-to-date, with a 9 percent drop in North America partially offset by flat sales of games in Europe. He cited the Wii and particularly the music game category as being responsible for much of the downturn but stressed that EA has "limited exposure" to those businesses without mentioning the EA-distributed Rock Band by name. On the other hand, sales of PlayStation 3 games have been particularly strong, with EA saying software sales for Sony's console were up 40 percent year-over-year in the west, and 50 percent in Europe alone.

For the second fiscal quarter (three months ending September 30), EA expects to post $600-$650 million in sales, with a net loss of $262-$295 million. Both those numbers are smaller than its previous year's second quarter, when sales tallied $788 million and losses amounted to $391 million. The publisher also reiterated its full-year expectations of between $3.35 billion and $3.60 billion in revenues, although it now expects losses to range from $.70 to $1 per share, instead of the $0.85 to $1.15 range previously issued.

53 Comments

  • schawnneo

    Posted Aug 7, 2010 8:54 pm GMT

    To Activision:
    Fix the damn 'auto shut down' bug in MW2 !!!

  • mjc0961

    Posted Aug 5, 2010 12:49 pm GMT

    @setuwa: Did I say anything about Rock Band 3? I was talking about Beatles/Green Day/etcetcetc and so on. It's called DLC, use it for more than 5 songs a week.

  • xalcoholic92

    Posted Aug 5, 2010 6:21 am GMT

    pls release Battlefield BC3 soon !!!! i cant wait any longer !!!

  • issa3703

    Posted Aug 5, 2010 4:16 am GMT

    bad company2 is the best online game wow

  • beaustaples

    Posted Aug 5, 2010 12:09 am GMT

    i hate EA servers they suck but BC2 is no doubt one of the best games out there and one of the best EA games i hated NFS undercover after that game havn't got another NFS because they disappointed me

  • king_olly

    Posted Aug 4, 2010 11:37 pm GMT

    Loveeee Bad company 2 online it is the best!! But wish they would hurry up and make Dunegon Keeper 3!!!

  • CHasingTheSun

    Posted Aug 4, 2010 3:00 pm GMT

    Well deserved, EA turned themselves around, and showed us they can still make great games with great production value.

  • vega13mv

    Posted Aug 4, 2010 1:45 pm GMT

    815 million!?!? now thats a gooooooooooooooaaaallll!!!!!

  • EA_LOVER

    Posted Aug 4, 2010 1:26 pm GMT

    Battlefield Bad Company 2 its from the best game i have played in 2010

  • CPM_basic

    Posted Aug 4, 2010 1:07 pm GMT

    Bad Company 2 is a sick game. Put over 80 hours into the game on PC already. Battlefield 3 is probably going to be even more amazing.

  • setuwa

    Posted Aug 4, 2010 11:54 am GMT

    @mjc0961 rock band 3 is not the same as rock band 2. Seems like your just making assumptions

  • Bortson

    Posted Aug 4, 2010 10:52 am GMT

    Dead Space 2 is what Im waiting for. Hopefully EA delivers another solid game with their new business mentality instead of the old ways

  • chrisg88wb

    Posted Aug 4, 2010 10:50 am GMT

    Can't wait for Battlefield Bad Company 3.

  • mjc0961 posted Aug 4, 2010 9:33 am GMT (does not meet display criteria. sign in to show)

    mjc0961

    Posted Aug 4, 2010 9:33 am GMT (hide)

    "He cited the Wii and particularly the music game category as being responsible for much of the downturn"

    Really? Who would have thought that re-releasing the game game every year with different songs or gimmicks would stagnate the market? And don't try to say you aren't in on it, EA. Rock Band is just as bad as _____ Hero these days.

  • Dan21278

    Posted Aug 4, 2010 8:58 am GMT

    @monson21502
    @ bSITE
    This is true but I don't mind manually transferring players to their new teams. Also I;m really on the fence with FIFA 11. I feel as though it could go really well or really bad and I don;t wanna risk it. Anyway I'll wait for the FIFA 11 review. lol

  • bSITE

    Posted Aug 4, 2010 8:22 am GMT

    @monson21502 Thats true, players change clubs, new shirts, etc. Thats why there's a new game every year.

  • SkidRow18

    Posted Aug 4, 2010 8:08 am GMT

    fifa is awesome!

  • monson21502

    Posted Aug 4, 2010 8:01 am GMT

    dan. wait for 11. never buy any sports game half way threw the year. unless you buy it used for under 20 bucks. sports games lose their value the fastest of any game.

  • Dan21278

    Posted Aug 4, 2010 7:36 am GMT

    Yeah man sooooo many people bought FIFA 10 and the world cup game. Not to mention the all the COD haters who bought BB2. I'm not surpriesd BUT 815 million is a LOT of cash. lol
    Tell me guys should I get FIFA 10 now or wait for 11?

  • snarl2

    Posted Aug 4, 2010 7:23 am GMT

    I'll support EA over Activision any day!

  • monson21502

    Posted Aug 4, 2010 6:43 am GMT

    i bought bbc2 for both ps3 and 360. . i havent played a soccor game since i played that one soccor game on the neo geo that you had powers and can charge up your kicks lol. just dont think i could get into a normal soccor game.

  • bodylotion

    Posted Aug 4, 2010 6:32 am GMT

    The real FIFA lovers did buy the worldcup version too and they all will buy FIFA 11 too simply because you know everyone's going to buy the new FIFA. playing FIFA WC 2010 or FIFA 10 is like playing on the PS2.

  • game_overdose54

    Posted Aug 4, 2010 6:31 am GMT

    EA has really been cleaning up their act. They're established franchises like Need for Speed are changing for the better and they're even taking on some new ideas and IP's like Mirror's Edge and, hell even DeathSpank. I can't wait for Medal of Honor.

  • hahnasty

    Posted Aug 4, 2010 6:11 am GMT

    @StJimmy15 I wasn't saying it was bad EA capitalized on the World Cup, I think it's incredibly smart. I was just saying that I think there was a big boost in interest in the game because of the World Cup. I support EA also, and you're right, Bad Company 2 was good.
    @dievyan I know FIFA 10 has good ratings, it's an awesome game. And you're right, most of the sales do come from people who love the franchise, but a boom in sales 3 months before the new version comes out isn't from dedicated FIFA fans. They all get it right when it is released.

  • pbutt77

    Posted Aug 4, 2010 5:45 am GMT

    Yeah Kudos for bad company 2. They gained some points back with that release. I found it much better than the overhyped modernwarfare2. BFBC2's destructive cover/environment adds such a beautiful unrivaled dimension to gameplay. Graphics and sound were top notch out the gate aswell. EA...you can have my money if you keep this up, but you have a big mountain to climb when it comes to sports!

  • reeree746

    Posted Aug 4, 2010 5:13 am GMT

    Looks like Bad Company turned out to be a key player after all.

  • DanC1989

    Posted Aug 4, 2010 4:17 am GMT

    Finally FIFA games that deserve to sell well, bring on 11.

    (although not so sure about WC, good game but I can't shell out twice in a year for a football game)

  • macronia

    Posted Aug 4, 2010 2:59 am GMT

    Well Bad company 2 mass sells cuz of PC @ss EA

  • grasshopper6 posted Aug 4, 2010 2:05 am GMT (does not meet display criteria. sign in to show)

    grasshopper6

    Posted Aug 4, 2010 2:05 am GMT (hide)

    well the quality in FIFA is not good

  • Kleeyook

    Posted Aug 4, 2010 1:36 am GMT

    I used to hate EA for how greedy of them to rush the unfinished game out like Merc 2, and then The Sabotoer, then closed the studio that made the game to punish them. They also closed the studio that made Dead Space.

    But this time Activision takes the crown on most hated publisher. They really show sign of their greed. How come they fire IW who made them MW2!?

    Ubisoft also pissed me about the permanent internet connection required to play their PC games too, even if i play them offline.

  • the_real_dark

    Posted Aug 4, 2010 1:31 am GMT

    I bought Battlefield Bad Company 2 last week for 5 bucks brand new and I'm loving it.

  • dkdk999

    Posted Aug 3, 2010 10:04 pm GMT

    the only two very negative reviews happened right after eachother doesnt that sort of give you the idea that their the same person using a different account?

  • Dill-Man

    Posted Aug 3, 2010 9:38 pm GMT

    Yup, there's been a change of guard of most hated game publisher: it was EA and is now Activision. It's pretty obvious from these comments. I don't think a lot of the new generation gamers can fathom how much people used to dump on EA.

  • Gruug

    Posted Aug 3, 2010 9:20 pm GMT

    I think that EA still has a long way to go before I will call the a "AAA" game company that puts out quality products. Unfortunately, they still do not have an adequate Quality Control or ignore such if they put out a "hard" launch date on a game. BFBC2 is a good example of a game that should have been tested more and delayed to fix problems. The PC version of the game was pretty much a mess when launched and the 360 had some problems too (far too many for a 360 title IMHO). EA should have delayed it until it was actually ready. Now, EA/DICE have made some strides to make it work. But that should not have happened AFTER THE FACT. Would you purchase a car with only 3 of the 4 wheels attached or a house missing the plumbing? Unfortunately, we the consumer are so quick to want the product "now" that we give companies like EA the idea that they can pull this too often without any backlash. The time has come that we the consumre DEMAND quality product WHEN the game hits the shelves.

  • StJimmy15

    Posted Aug 3, 2010 9:03 pm GMT

    @hahnasty Is it their fault for capitalizing on the event or the consumer's fault for being so predictable? Honestly, I'd do the same thing. People get pissed cause its EA but hey, I actually enjoy Bad Company 2 and I don't mind supporting a company that may put out more content like that.

  • dievyan

    Posted Aug 3, 2010 8:11 pm GMT

    @ hahnasty
    First of all, have you even checked the rating gamespot has given Fifa 10, a 9.0 will obviously have some good sales, second of all, the world cup just boosts the game by a small factor... Most of the sales come from the fans that have loved the old ones and love the new graphics, animation and gameplay in fifa 10

  • hahnasty

    Posted Aug 3, 2010 7:54 pm GMT

    This revenue boost came because of the World Cup. Fifa won't sell this well next year at this same time. EA Sports capitalized on the event.

  • Pete5506

    Posted Aug 3, 2010 7:54 pm GMT

    EA is coming back, and BC2 is so much fun

  • bizuit

    Posted Aug 3, 2010 7:45 pm GMT

    NHL 10=The best online game on Live when you have 6 on 6 and 12 guys who know what they are doing and yes its better than Halo, Call Of Duty MW and Bad Company

  • jaijames

    Posted Aug 3, 2010 7:27 pm GMT

    Fifa and nfl is the only games holding ea

  • cjasko94

    Posted Aug 3, 2010 7:27 pm GMT

    EA > Activision

  • 93soccer

    Posted Aug 3, 2010 7:17 pm GMT

    WooT!!!

    Love EA!
    LOVE FIFA!!!!

  • dkdk999

    Posted Aug 3, 2010 6:43 pm GMT

    @King_Gamer19 really? i think their a good publisher compared to other publishers.

  • King_Gamer19 posted Aug 3, 2010 6:38 pm GMT (does not meet display criteria. sign in to show)

    King_Gamer19

    Posted Aug 3, 2010 6:38 pm GMT (hide)

    F EA I hope they go out of business

  • JOKER677 posted Aug 3, 2010 6:36 pm GMT (does not meet display criteria. sign in to show)

    JOKER677

    Posted Aug 3, 2010 6:36 pm GMT (hide)

    Yeah they are forcing people to buy the next games buy lagging online and not fixing it so here goes to Medal of Honor.

  • daabulls23

    Posted Aug 3, 2010 6:29 pm GMT

    EA has stepped up their game. Competition is good!

  • amaan4ever

    Posted Aug 3, 2010 6:21 pm GMT

    @ Flint247 i didnt get about MW2 thing

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