EA Earnings Show Mobile Gaming Pays Off Big Time

EA Earnings Show Mobile Gaming Pays Off Big Time

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Mobile's doing well, but you shouldn't expect a new Star Wars title any time soon.

"As we enter a new fiscal year, EA is well-positioned for dynamic growth on next generation consoles, PCs, and mobile platforms," claims EA's Larry Probst in a press release accompanying EA's financials for 2013, and Probst has reason to be bullish about mobile in particular. In 2013, EA was mobile's #1 publisher, globally. Mobile and digital handheld revenues have increased 21%, year on year, for a grand total of $104 million net revenue. Origin, the service we all love, claims 47 million users, including 20 million mobile users. Digital net revenue overall? Well, that bumped up 36%, for a record $1.7 billion.

Doughnuts and cars were standout products for EA in 2013. The Simpsons: Tapped Out, a free-to-play title in which you rebuild a ravaged Springfield one building at a time, or quicker if you purchase premium currency doughnuts, has generated nearly $50 million in profit since its August 2012 launch.Real Racing 3, another free-to-play where you take your Bugatti or Lamborghini out for a spin, has generated 30 million downloads so far, and has kept the title of #1 racing game on the iOS store since its March launch.

That said, it's not all sunshine in EA land. Probst is in the seat because CEO John Riccitiello departed, primarily because EA - despite the excellent performance of its digital and mobile segments - really didn't have a good year. Moreover approximately 10% of EA's staff has also gone, adding up to a total $27 million worth of severance cost expenses. EA wasn't about to say how much of that $27 million was due to Riccitiello alone. However some of that 10% does come from EA's support staff, and it's worth bearing in mind that poor customer support is one of the reasons why EA won worst company of the year twice in a row. Meanwhile Frank Gibeau of EA Labels was quick to point out that lessons had been learned from SimCity's disastrous launch, and that nothing like it would happen again. "Consumers overwhelming the game servers" were, in Gibeau's estimate, the primary reason for the disaster. EA had some bad news for Star Wars fans; though work's ongoing, you won't see a new game this financial year. So whatever that nebulous Star Wars launch date may be, it'll be coming sometime after March 2014.

Source: SEC Filing, EA earnings call

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The new Star Wars game is going to be for mobile platforms isn't it?

And that Simpsons game was about rebuilding Springfield? I thought you just feed Homer donuts by tapping him on the screen.

DVS BSTrD:
The new Star Wars game is going to be for mobile platforms isn't it?

And that Simpsons game was about rebuilding Springfield? I thought you just feed Homer donuts by tapping him on the screen.

"Tap here to get the Deluxe Doughnut Discount Bundle for only $2.99!"

or

"Tap here to activate lightsaber for only $0.99!"

etc. etc.

OT: I like to think of myself as a reasonable person. I can usually see both sides of an argument.
But when Frank Gibeau says the lesson that EA is learning from the SimCity launch is the fault lays with the customers wanting to play their game? That just leaves me incredulous.

EA vows to never have a launch disaster like SimCity again, but states that the server problems were mostly caused by too many customers. So, they're going to make sure less people want to play their games in the future to avoid this? I guess they're on the right track ...

Karloff:

"Consumers overwhelming the game servers" were, in Gibeau's estimate, the primary reason for the disaster.

You just keep telling yourself that EA. Keep ignoring your customers complaints in favor of your own little delusions. It'll just make it that much more satisfying when reality finally catches up with you.

I, personally, can't wait for that day.

EA are doing well in the mobile market while at the same time laying off swathes of staff in their mobile departments? Something seems weird here. Are they selling their staff to aliens?

DVS BSTrD:
The new Star Wars game is going to be for mobile platforms isn't it?

And that Simpsons game was about rebuilding Springfield? I thought you just feed Homer donuts by tapping him on the screen.

Fortunately not; EA's "exclusive" rights to Star Wars games only stretches to PC & Console titles, it excludes Mobile devices. Probably because Disney's gaming arm isn't making any money in the PC & Console sector atm.

Something funny I noticed goin through the SEC filin.

"EA has a solid operating plan with disciplined R&D spending

Lol, disciplined R&D spendin my ass.

look it's obvious all the future EA star wars games are just going to be tie-ins to Disney's future star wars films.

Well there we have it folks!! EA's servers would have been JUST FINE if ya'll hadn't overloaded them!! You should've played the single player mo-

Oh wait.

 

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