Home Gaming EA earnings better than expected

EA earnings better than expected

2 min read
37

Mansions for all at EA

I always expect EA to make a whole bunch of money. They make a few excellent titles, and they know how to cash grab with the best/worst of them. However, even they were surprised by just how much money they made at the end of 2014.

EA reported net revenues were up 39% in the third fiscal quarter to almost $1.13 billion on a GAAP basis. That’s a net income of $142 million in the period as compared to a loss in the same period the year before of $308 million. Investors must be happy.

A highlight for the company was the growth of digital. Digital revenue was up 34% year-over-year to $693 million. Surprisingly, the EA Sports Ultimate Team modes seems to have the most growth in the sector, helping to boost the ridiculous income from digital sales that EA is experiencing. This trend is looking to extend to the full year’s income with EA expecting to bring in $2.23 billion in digital revenue out of a total revenue of $4.25 billion.

It makes sense to me that they made so much bank at the end of last year – they released The Sims 4 and Dragon Age: Inquisition, as well as all the usual sports titles. Dragon Age: Inquisition was the most successful launch of Bioware’s history. The digital revenue is still primarily for extra content, predominantly on console. Yeah, none of this is too surprising.

EA is counting on Battlefield Hardline to round out the fiscal year’s earnings, although it seems that Titanfall, FIFA, Madden and The Sims will continue to earn the company cash even into their fourth fiscal quarter. I wonder if their holiday title, Star Wars: Battlefront, will blow away next year’s financial planning, too.

I know people love to hate EA. It’s all about the money with them, and other such issues. However, they really have put out some excellent games in the last fiscal year, and those who choose to boycott their products haven’t made any impact on their bottom line. They continue to rake in the money. Plus, based on consumer spending, they will probably continue to push for DLC and other add ons – that’s where they’re making the bulk of their money and there has been no incentive for them to change that model.

Last Updated: January 28, 2015

37 Comments

  1. Mandom (Umar)

    January 28, 2015 at 08:03

    Aaaaaaand this is why DLC and MT’s are here to stay

    Reply

    • Quo Vadis?

      January 28, 2015 at 08:11

      Agreed. I wouldn’t be surprised if all the DLC’s etc surpass the actual size of the game eventually.

      Reply

      • Mandom (Umar)

        January 28, 2015 at 08:13

        Lol Hell patches are getting bigger than most games

        Reply

    • Admiral Chief

      January 28, 2015 at 08:15

      Indeed, filthy filthy filthy, and people pay like sheep for it!

      Reply

    • Hammersteyn

      January 28, 2015 at 08:16

      [comment under rating]

      Reply

      • Mandom (Umar)

        January 28, 2015 at 08:17

        Please pay $2 to have your comment approved

        Reply

        • Hammersteyn

          January 28, 2015 at 08:17

          They’d swing a ban hammer that would make Thor envious

          Reply

  2. Quo Vadis?

    January 28, 2015 at 08:10

    They should rather come and devise a strategy for es(doos)kom rather. Shit I was annoyed last night. The one time I actually win something, and boom! Loadshedding!

    Reply

  3. Ghost In The Rift

    January 28, 2015 at 08:16

    I have been wondering what the next mayor DLC for DA:I gonna be, more cash for EA again.

    Reply

    • Brady miaau

      January 28, 2015 at 10:14

      Bioware DLC has mostly been of sterling quality. I tend to wait till a few are out and replay from scratch with new DLC content. Look at MA2 and MA3? DA:O was pretty good with DLC too

      Reply

  4. Hammersteyn

    January 28, 2015 at 08:17

    I’ll continue boycotting them even if it doesn’t make a difference to them it makes one to me. It is just about the money for them. Lets look at their games according to Wiki
    2014 FIFA World Cup Brazil 2014 FIFA World Cup Brazil – Sperts
    Dawngate – Cancelled
    Dragon Age: Inquisition – This is a nice one, must have eventually
    EA Sports UFC – Horrible controls
    FIFA 15 – Sperts sequel
    Madden NFL 15 – Sperts sequel
    NBA Live 15 – Sperts sequel
    NHL 15 – Sperts sequel
    Plants vs. Zombies: Garden Warfare – Another good title, I bought it on sale. Damn you EA
    The Sims 4 – DLC fest, thousands and thousands of rands
    Titanfall – Kudos for trying sometinhg new but where’s the rest of the game?
    Oh and as a bonus. Dungeon Keeper on mobile Dec 2013. Nuff said.

    So that’s two good games in 2014 and but they gave us theme hospital for free.

    Reply

    • Brady miaau

      January 28, 2015 at 10:13

      Dragon Age: Inquisition is that good, it eclipses most of that list

      Reply

      • Hammersteyn

        January 28, 2015 at 10:26

        Indeed. And they can do so much more. But it’s just about the money with them hence that NFS article.

        Reply

        • Brady miaau

          January 28, 2015 at 11:21

          Nothing wrong with focusing on money. Companies are in business to make money.

          Reply

          • Hammersteyn

            January 28, 2015 at 11:30

            But they burn their consumers. Well me anyways. Seems people are happy with the way they make games.

    • Aries

      January 28, 2015 at 10:39

      Actually have UFC, not that bad, the controls is something to get used to, and it is fun to play, plus that the only game where they actually give free stuff away

      Reply

      • Hammersteyn

        January 28, 2015 at 10:47

        I played the demo of UFC. Fight Night was a lot more user friendly.

        Reply

        • Aries

          January 28, 2015 at 10:51

          I know yes, it took awhile to learn but once i got it, played a few online matches and it made the game for me, was fun how quick a game can turn if you make a mistake and try to run away from the other guy

          Reply

  5. Hammersteyn

    January 28, 2015 at 08:21

    At least we can look forward to Star Wars: Battlefront,Mirrors Edge 2 and Mass Effect. My question still remains though. What if anything do they have planned for the licenses they gobbled up? Syndicate? C&C?
    Kingdoms of Amalur sequel maybe?

    Reply

    • Mandom (Umar)

      January 28, 2015 at 08:23

      F2P Mobile Spin-offs

      Reply

      • Hammersteyn

        January 28, 2015 at 08:25

        You’re making me angry, no one cares when I’m angry.
        *Sits and types at my little desk.

        Reply

        • Mandom (Umar)

          January 28, 2015 at 08:26

          LOL “No one cares when I’m angry” Hulk Spin-off. Low Self-Esteem Hulk

          Reply

      • Rock789

        January 28, 2015 at 08:28

        I should downvote you for such an absurb notion! :p

        Reply

        • Hammersteyn

          January 28, 2015 at 08:28

          Is it really absurd?

          Reply

          • Rock789

            January 28, 2015 at 08:30

            Sadly not… **sad Joker**

        • Mandom (Umar)

          January 28, 2015 at 08:30

          C&C Kane’s Adventure :O

          Reply

          • Rock789

            January 28, 2015 at 08:33

            C&C Kane’s **please pay $1 for full title**

            —>There, corrected for you. 😉

    • Brady miaau

      January 28, 2015 at 10:12

      Amalur! Anytime. Even that buggy first game got two playthroughs. It was just fun. Fun, fun, fun.

      more of that, please. Also, the world was very well realised (Macfarlane, R.A. Salavatore and ????)

      Reply

  6. Spy Master Tokashi

    January 28, 2015 at 08:26

    It is actually sad howmuch money they make out of that Ultimate team. People buy online credits to get cards.

    I am still a bit annoyed with EA. Dragon Age Inquisition is still not optimized for PC, it can run a lot faster and better. They make so much moollaah but still not spending the time to fix bad code. SIGH

    Reply

    • Admiral Chief

      January 28, 2015 at 08:26

      Hopefully it works better in a year

      Reply

    • Brady miaau

      January 28, 2015 at 10:11

      Well, my wife asks the following question: If your new Xbox One (PS4 same, I suppose) is so great, why do games take longer to load on it than the Xbox 360?

      New engines, new consoles. And the problem with PC optimisation i think is all the different hardware and ways to do it out there. It takes time, for a new engines to mature (Is DA:I on a new engine for PC?)

      Reply

      • Ceyber, The Metal Rabbit

        January 28, 2015 at 10:40

        Nah, uses the Frostbite engine from BF. First time it’s been implemented in this way though, so you have a point about hardware combinations being a factor. NFS Rivals didn’t have any optimization woes and it uses the same engine (though I may be mistaken). Across-the-board PC performance trouble is a different problem, which is what I think he’s trying to say.

        Reply

  7. Pieter Kruger

    January 28, 2015 at 08:28

    I also think the EA Vault earnings fell under “Digital Revenue”. Loving EA vault! Getting all those games for a single sub, plus early access and discounts on brand new games is excellent! More publishers will follow this model especially after these result!

    Reply

  8. Rock789

    January 28, 2015 at 08:32

    Honestly, I’m loving Dragon Age: Inquisition. Other than that, the list of games was a little meh this year… But they have a lot of great sounding games coming (chief amongst which is the new Mass Effect, courtesy of Bioware talent and EA money)… Could be an even better year for them in 2015.

    Reply

    • Brady miaau

      January 28, 2015 at 10:09

      you make an interesting point….

      Hmm, Witcher and Mass Effect

      Reply

      • Rock789

        January 28, 2015 at 10:48

        Yup – I need those 2 games and Project Cars and I am a happy Panda for the rest of 2015! 🙂

        Reply

        • Rock789

          January 28, 2015 at 10:49

          Oh, and Uncharted!!

          Reply

Leave a Reply

Your email address will not be published.

Check Also

FIFA and EA Split? How Did it Happen and What Now for the Future of the Franchise?

In life, there are many staples, peanut butter and jam, bread and a toaster, and in gaming…