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EA Console And Mobile Sales Up In First Quarter, PC Revenue Down

by Mike Futter on Aug 02, 2016 at 10:47 AM

EA exceeded revenue expectations in the first quarter of its FY17 fiscal year. The company once again saw year-over-year increases in digital sales, which now account for 54 percent of revenue ($682 million). Profits dipped slightly by 1.6 percent to $440 million.

Current-generation sales continue to climb, more than making up for the continuing slide of last-gen revenues. Xbox One and PlayStation 4 full-game and add-on sales grew by 59 percent, propelling that segment (inclusive of last-generation software) to $910 million of the total $1.2 billion revenue (71.6 percent). FIFA Ultimate Team continues to be draw huge revenue for the publisher.

PC and browser-based content sales dropped, but mobile continued to grow, now accounting for $165 million of total revenue (13 percent). EA says that Star Wars: Galaxy of Heroes was a standout smartphone performer, with Madden NFL Mobile also drawing high levels of engagement (more than 20 percent year-over-year).

While Battlefield continued to have a strong quarter with 11.5 million users and led by Battlefield 4, the picture isn’t quite so bright for Star Wars Battlefront. That game shipped 14 million units as of March 31, but only sported 6.6 million unique players during the quarter, despite release of new DLC in late June.

EA will be holding its first quarter earnings call later this afternoon.


Our Take
We’re seeing the continuation of a pattern here, with Ultimate Team and mobile editions of big franchises bringing in consistent, reliable revenue. Digital continues to grow, and as the gaming industry walks its path from product to service orientation, we’re likely to see year-long monetization on $60 retail titles mount.