Profits from near-billion-dollar Jan.-March quarter help publisher curtail shortfall; Madden 10, NFS: Shift top 4M units; Bad Company 2 hits 5M; Mass Effect 2 sells 1.6M.
Less than one week after its archrival Activision Blizzard reported a January-March quarterly income of $381 million on revenues of $1.3 billion, Electronic Arts has delivered its annual and fourth-quarter earnings. Suffice it to say, the results weren't nearly as pretty.
For the full fiscal year, EA posted net revenues of $3.654 billion, well off the $4.212 billion it reported for the year prior. Blunting this decline, EA noted that it ended the year with $766 million in deferred income, or money related to certain online services that it will recognize over individual games' lifetimes. Having reported a $1.09 billion deficit last year, EA said today that losses for the just-ended fiscal period amounted to $677 million.
Considering the strength of EA's top-of-the-year lineup, it comes as no surprise that the publisher had a strong fiscal fourth quarter. During the January-March window, revenues hit $979 million, up 14 percent from the $860 million posted during the same period in 2009. EA also turned a $30 million profit during the quarter, reversing last year's loss of $42 million.
EA Dice's Battlefield: Bad Company 2 led the publisher's offerings during the quarter. To date, the top-rated modern-day shooter has sold some 5 million units on the Xbox 360, PlayStation 3, and PC. Other top performers during the quarter included BioWare's highly regarded Mass Effect 2 and Visceral's less-than-stellar Dante's Inferno. During the year, Madden NFL 10, The Sims 3, Battlefield: Bad Company 2, and Need for Speed: Shift all sold in excess of 4 million units. FIFA Soccer 10 more than doubled that feat, selling over 10 million units since launching last October.
Though its release came outside the fiscal year, EA also trumpeted the fast start of 2010 FIFA World Cup: South Africa. The soccer sim--which scored high marks on the Xbox 360, PS3, PSP, and Wii last month--has already sold nearly 2 million units to date.
As it did last quarter, EA also laid out its release schedule for its in-progress fiscal year ending March 31, 2011. Notably the updated release lineup includes a few alterations. Previously slated for a first quarter release, EA now expects to launch Need for Speed World during the July-September quarter. EA also appears to have delayed its unspecified "Action Title TBA ('full game download' for consoles)" out of the fiscal year.
EA expects to pull in $710 million to $750 million during its April-June 2010 quarter, with earnings per share to come in between a $0.05 loss to a $0.05 gain. While those figures are in line with last quarter's projections, EA revised its full-year earnings expectations range, anticipating it now to fall between $3.35 billion and $3.60 billion. Loss per share is now expected to come in between $0.85 and $1.15.
During a call with analysts, EA CEO John Riccitiello, COO John Schappert, and CFO Eric Brown discussed highlights of the previous and coming years. These included:
--The executive team noted that Mass Effect 2 has sold through more than 1.6 million units through both retail and digital means in Europe and North America. In January, the publisher said BioWare's acclaimed sci-fi role-playing game had shipped 2 million units worldwide.
--Dante's Inferno has now sold nearly 1 million units, while Army of Two: The 40th Day has sold more than 1 million units.
--Somewhat mysteriously, Schappert said that EA will "show a marquee title in breathtaking 3D" at this year's Electronic Entertainment Expo.
Look people this happens all the time to companies. I love EA probably over 80% of my games is from them. Companies in this business gain and lose money all the time, it happens. another thing is that they would probably lose more money if they put mass effect 2 on the ps3 because theyve put it on PC and 360.Its hard on companies to make one game for three different platforms esspecially when one has more people playing one and not the other (like the xbox 360 and ps3 more people have xbox's than ps3's) another thing stop saying theres more of a certain fan on this console than the other because theres realy not. more ppl own xbox than ps3.So they would lose money on the ps3. they had to pick one or the other so they picked xbox because its MORE popular. Besides in this business or almost guaranteed to lose money money if u put out games that ppl dont like. besides in this economy this isnt surprising. I bet Activision is having the same trouble too. so ppl just chill this is just a minor set back.
Does not matter they loose 600+ million; they'll just fix it firing another 700 workers like they did with me. "Act with Integrity" they tell you when you start... well, there you ahve your integrity Riccitiello, you can keep it all for you alone.
put it simply mass effect will never be on ps3 why because the first mass effect was under the microsoft banner, and so they have the rights, so unless EA brought which is doubtful, you wont see Mass effect on PS becayse Microsoft aint gonna be giving up the rights or sign over the rights without a EA saying they wont be doing a PS3 port
I hope the best for EA. Ive enjoyed their games since i was a kid. Now hopefully Respawn pulls through with a great IP, since EA is funding them to get on their feet. DONT LET US DOWN RESPAWN!
I sincerely believe Mass Effect 2 to be one of the 5, best games ever. I wish I could buy as many copies as the additional that COD:MW2 sold - so about 8 million copies on XBOX - just for them to shove it in Activision's face! LOL!
the losses couldn't happen to a nicer company... now if only the lemmings would stop buying Activision crap we would get another good news story such as this one
Wouldn't Respawn new MW killer compete with Bad Company series as well. So why would EA back them as far as that goes? Anyway I play both Bad Company 2 and MW2, love'em both. They each are their own games with mood and tempo, both single player and multi-player.
@chapman86 I know, it deserves to sell like 10 Mil, but in some ways in makes me all the more proud to be a Bioware fan [Heh, I would anyway seeing as I've played all their old games as well though]...
PS3 will not get Mass Effect 2, get over it! and it would not have outsold the xbox version if it did because the (generic) RPG fans are all in Japan and the Japanese are stuck up and hate America so they wont buy it.
the one thing about MW2 is that there is never a dull moment. its fast paced all the way to the end. btw the spec ops mode is awesome
...BF:BC2 and Mass Effect 2 are far better than MW2. I still really cant believe it sold so well, it was a 5 hour campaign with a story that made less sense then a Family Guy episode. Oh and the online is nothing but a nade fest where every 12 year old has a mic and a "colorful" opinion of you.
the last 2 strategy games for ea being red alert 3 & CnC 4 have been total waste of the gaming industry. they really need to get more quality games
@valcrist09 They already have ruined gaming. @Daian Your absolutely right ME2's sales would have tripled had it been on the PS3. That was a stupid move on EA's part.(Weather it had a been a time exclusive deal or not)
Big_Mac4547 I couldn't agree with you more. They wouldn't even be having these kind of problems if they had've put Masseffect 2 on the PS3. But what I see in the future is a Masseffect trilogy for the PS3 in the future. Also I HATE MW2 it's a crap game.(Good story though, not enough MW1 gameplay) Killzone 2 is a better game but.... Those controls had some issues.
I do not care about EA, ActivisionBlizzard, or another publisher!! as long as they released a multi-platform!! I'm sick of seeing exclusive titles!!
The only EA sport game I buy is NHL. The last time I went out and got a NHL game was NHL 08. This is my view. I find it a wast to buy a new sport game every year. Not much change happens. You might get that new guy or some one ends up getting traded to another team. I will buy the next NHL but used..
When you compare it to activision its going to look bad. Activision has WoW has over 11 million (last reported) paying accounts. They should be pulling in over $110 million a month on this game alone (minus server costs, patch fixes). Mark my words, Respawn Entertainment will pull EA out of the gutter.
you know what will help them the most is to have mass effect come out to the PS3 everyone knows that the biggest RPG fans are one the PS3 not to say that there are no RPG fans one the 360 but Mass Effect would sell so much better if it was on the PS3 too!
the one big thing that will help EA is that Activision is starting to look big bad monopoly that people thought that EA was and The Crapgamer MW2 is the biggest joke ever can't say that BFBC2 is better or not but Killzone 2 was a hell of a lot better!
E.A. is a joke. Maybe they wouldn't be losing so much money if they didn't have people boycotting them. Personally I haven't bought a E.A. Sports game since they paid all those millions and millions for the NFL license. BFBC2 is a joke, it must bother them to know that MW2 sold more copies on the 360 ALONE then BFBC2 sold across all the platforms. Quit trying to become a Monopoly E.A. you are ruining so many games and franchises!
Bit of a shame really, when you consider: BC2 is better than MW2, atleast in Multiplay They've improved NFS's name again with Shift, Fifa is now superior to pro evo, Mass Effect/Dragon Age are Bioware and hence amazing, ...EA seem to have been doing all the right things. I hope things do eventually turn around for them, they do seem to have realised in recent years that it's all about the quality titles. Can't say the same for Activision.
I've still got some problems with EA, but they've suffered enough for past crimes. Look at the quality of their lineup this past quarter, they're learning from mistakes. Here's hoping their financial situation continues to improve, for their employees' sake if nothing else.
So THATS why they are charging 40 clams for FIFA world cup south africa, which is, lets face it, a glorified DLC package with a hefty price tag. There is nothing in the game to set it apart from last years FIFA 10 that warrants the £40 price, unless you think close- ups of the crowd with their faces painted in patriotic colours is a fantastic game mechanic...
Why does this story only state loss's? and not Net loss's/profits? Last year they only Lost 50mill. But this story make it out like the company is in 650mill debt :/
....I think some people are reading this wrong. These "losses" don't mean they actually lost money...it means they made less then they expected and/or less then last year. I don't hate EA these days....they have become ok in my book. Activision are the Evil company these days. I've gotten word that Activision is attemting to corrupt Blizzard T_T
"ugh i hate EA and i hate Activison both ruining games in there own way, Expensive DLC, raising the cost of PC games to 60$ for stupid ports, EA trying to make people pay for DLC/online etc if not new.." Actually EA's current piracy reduction scheme is very reasonable, not punishing second owners or pirated copies by refusal to run the game, simply providing fair incentives to pick up a real copy. I like that, MUCH improved over stringent DRM and limited installs!!! And actually that's only Activision making expensive DLC (£12 for MW2 add-on) and hyping MW2's original price up also.
@Daian Yep i know. But thing is, games like ME2 are considered "nerdy" by a majority. Their storylines are complex and their theme highly "trekky" in nature. For a good portion of the market, that's the put off. While MW2 is i suppose much more of a broad appeal game, anyone who likes guns will like MW2. Besides these figures are wrong: http://www.vgchartz.com/games/game.php?id=28815®ion=All The 360 edition of ME2 sold 1.72Million units through it's first 10 weeks, and it's now been loads more than 10 weeks since launch so it'll have continued selling more since then. And the PC version of ME2 was a very well selling game, it was top on the Steam sales leaderboard for weeks after launch, indicating sevreal 100k copies would have shifted over Steam's counter. And we're not even counting retail and etail box copies of the PC version yet! I'm saying the total PC and 360 sales of ME2 are closer to 3 Million. The PC version i'll admit wont have sold more than the 360 one, but a good 1 Million copies? Easy, half my friends have it!
"dakan45 Posted May 12, 2010 9:20 pm GMT -12 That is sad, everyone suffers loses nowdays, but it seems that ea is the only one who bothere to release numbers." what this shows is that console gaming isnt profitable, it just costs too much for the devs/publishers.
@Daian I think that's because most gamers are idiots. See in the past only geeks were gamers, geeks are smart, gamers were smart, everything was golden. Then at some point gaming suddenly became "cool" and then it was adopted by the mainstream and became a focal entertainment element for the newer generations. Now lots of people game, and it just so happens that lots of people are also brain dead idiots... Go figure.
well i guess thats what EA gets for buying so many companies out. not to mention the sheer size of their marketing campaigns must cost a pretty penny. Lets hope that all the money was well-spent.
@Daian Agreed. I've never been a big fan of EA. I've liked some of the devs that have been published by them (like FREE RADICAL), but not EA itself. And MW2 is very overrated. Good thing I've become more of a DS and PC gamer. EA doesn't run a damn thing in those platforms.
kdawg shut up,ea and ubisoft are the best and i luv ea so i aint wastin my time to ur crap!!! so **** off kdawg,you *****!!! and daian ur totaly right about the exclusives.
The main thing that disappoints me here is the fact that ME2 sold "only" 1.6 million. It's still a big number but for such a big and impressive title that's well under expectations. It pains me to see this kind of games sell so little in comparison to overrated games like MW2 ( 5 hour long campaign that makes little sense, no dedicated servers, recycling of DLC maps ). @bobsimcool Well now u know how i feel whenever a great game launches only for 360/PS3 and not the PC. Believe me I'd like nothing more than for this exclusives war to stop but it never will.
as the biggest publisher out there, and one of the best game developers, I wish EA to jump up :) they deserve it. And when I look at those numbers, I'm really sad to see Mass Effect 2 sells only 1.6 millions, while Battlefield 2 (which also is a great game) sold 3 times more :( ME2 should have much bigger sell numbers
Request for EA, Mass Effect 1 & 2 for PS3 console, for common outcome between EA and PS3 owner. EA get new source of income to generate more sale for Mass Effect series and PS3 owner can play Mass Effect.
maybe i should finally go get a copy of mass effect 2. Bad company 2 was definately worth it for me.
That is sad, everyone suffers loses nowdays, but it seems that ea is the only one who bothere to release numbers.
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