Digital revenue growth fails to offset EA's declining Q3 console software sales
Publisher to remain "cautious" about Q4 over core packaged software biz
Electronic Arts earlier today released its fiscal third quarter earnings results and reported a $45 million USD net loss for the three month period ended December 31st, 2012. It's a marked improvement from the $205 million USD loss posted for the same period last year, but the mega publisher acknowledges it has pulled through a "challenging" fiscal quarter this time around thanks to growing digital revenue.
Poor Medal of Honor: Warfighter sales served to underline any shortfalls faced by the publisher. Electronic Arts noted this past holiday quarter was particularly weak given that the major industry players have begun bracing (not to mention investing) for a transition to the next generation of gaming hardware.
Total net revenue reached $922 million USD, with packaged goods revenue accounting for $568 million of the total. Digital net revenue, which includes digital purchases made through supporting EA titles like FIFA 13, contributed another $321 million USD. Revenue for package goods remained larger, but actually decreased 23 percent year-on-year compared to digital revenue, which continued to grow.
Indeed, growth for EA during the holiday quarter was in digital sales and mobile. EA's COO Peter Moore boasted that his company was the top publisher on Apple iOS devices worldwide last calendar year, and contributed six of the top twenty iOS titles in North America.
Other EA Q3 FY13 highlights include:
*On a non-GAAP basis
- FIFA 13 sold through over 12 million units through the third quarter, a 23% increase versus FIFA 12 in the prior year.
- FIFA 13 digital net revenue topped $100 million* in the quarter, a 98% increase versus FIFA 12 in the prior year.
- Total FIFA digital net revenue generated over $230 million* in the first three quarters of fiscal 13, including EA SPORTS FIFA Online 2 and FIFA World Class Soccer that together contributed over $60 million*.
- Battlefield 3 Premium generated over $108 million in sales through the third quarter, and has 2.9 million subscriptions to date.
- EA had six of the top twenty titles in Western World retail markets in 2012, compared to four in 2011, and was the #1 global publisher in the iOS game market for 2012.
- The Simpsons: Tapped Out was a top grossing iOS game for the quarter, generating over $23 million* in digital net revenue.
- EA’s games and services for mobile, including handhelds, have generated approximately $100 million* in the quarter, an 18%* year-over-year increase in digital net revenue.
- EA’s Origin platform for downloading digital games and services has registered over 39 million users, including 17 million mobile users. EA has signed agreements with 86 independent developers for Origin.
- Dead Space 3 pre-sells are outpacing Dead Space 2, and Crysis 3 pre-orders are tracking 40% ahead of Crysis 2.
Source: VentureBeat
Sections: Console Games, Handheld Games, Mobile Games
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I <3 Steam.
Time is the answer here for all affordability issues
Price arbitrage is common in Australia!!!
I just pre-purchased the new Tomb Raider on PC for $35 (/w $10 cash back), to show you how cheap we can buy games digitally. Developers themselves see a bigger profit margin even at these prices.
for 4 bucks extra you get all the map packs for mercenaries. no shiny collectible trinkets like physical, but it'l play just as nice.
i think we can call it a miss communication. it's best to stick with the physical on your end THM. don't rob yourself of your own money just because some seniors in the Australian counsel have to finish their 65+ typing and email lessons before they are ready to learn how to pronounce the word video game so they can actually discuss on how to make games affordable for the youth they are robbing blind of their savings.
Yes, I do love the smell of new game case/book or even magazines
sides, retail might be a little cheaper then buying online on average, but online game services like PS+ are way cheaper then retail. combine their advantages and it'l leave some money for household expenses.
in fact it's how i have been saving money for my new set of cups, dinner plates, etc in my kitchen this month. i keep a folder with good PS+ games on my ps3 which i add digital games to every now and then. every time i need to save money on something i play those games to save on video game expenses.
P.S. Physical copies are always cheaper for consoles believe it or not!!!!