EA’s posted its financial results and the last quarter wasn’t a particularly good one for the publishing giant. Net revenues for the 3 month period ending December 31 were down from 2012’s $922 million to a sobering $808 million.
Year-on-year revenues were also down; $3.66 billion (with a $36 million loss) from $3.96 billion the year previous. It mostly comes down to a significant drop in the sales of packaged goods.
According to EA, revenues from packaged goods and ‘other’ products also fell nearly $200 from $568 million to $370 million. EA says that they’ve seen "strong sales of our next-generation console titles," but that hasn’t been offset by what they call "weakness in current generation software". With the much larger install bases of the older consoles, that means significantly fewer sales.
It must be a lot worse for other publishers, as EA affirms it’s "the #1 publisher on next-generation consoles in December" in Western territories, largely due to sales of evergreen titles like Battlefield 4, Madden NFL 25, FIFA 14 and Need for Speed Rivals.
It’s not all bad for EA. The company’s digital business has seen a significant spike, with digital revenues hitting $410 million compared with the previous year’s $321 million.
EA’s new CEO Andrew Wilson had this to say about it all.
"EA’s third quarter marked an exciting start to a new generation of games, and we are proud to have been the #1 publisher on next-generation consoles in December, with millions of gamers across the globe playing EA titles on the PlayStation 4 and Xbox One.
"In addition to consoles, our mobile games, digital downloads and live services are growing year-over-year as we continue to deliver exciting new experiences to gamers around the world."
Last Updated: January 29, 2014