EA To Surpass $1 Billion In Digital Revenue This Fiscal Year

By Colin Tan on July 25, 2011, 5:03PM EDT
PC

EA may be well on track to surpassing their goal of $1 billion in digital revenue this fiscal year, according to some analysts, especially the publishing giant recently acquired popular social game firm Popcap Games.

"EA should realise its ambition of creating a $1bn digital business this fiscal year with aplomb," said IHS Screen Digest analysts to MCV.

"There's no one like us. There isn't a competitor that's a leader in console, PC, DLC, microtransaction, iOS and social networks," said EA CEO John Riccitiello. "Today about a quarter of industry revenue comes from mobile, social, tablet and casual PC. We expect that 25 per cent to rise to 50 per cent or more in the coming five years.

"We've been stepping down investment against our core packaged goods business, and stepping up investment against digital opportunity. This year we're getting close to 50/50. Three years ago, we were closer to 90/10.

"Virtually everything we're doing now is against the digital opportunity. It's where we see our growth. It's where we see our margin expansion. It gets us that less seasonable, more ratable, and more profitable business."

EA's biggest contributor to the digital market is apparently DLC and free-to-play games, including titles for Facebook, which generated a combined total of $295 million in the last financial year.

"It would not surprise me to see microtransactions become our largest potential revenue stream in the course of the fullness of time," said Riccitiello.

"We're starting to see significant digital leverage per packaged goods franchise," added EA's CFO Eric Brown. "What we're looking to do is to get more titles into $50m+ digital extension level like we've done with FIFA and Battlefield: Bad Company 2."

Source: MCV

blog comments powered by Disqus