In a financial report published a few days ago, EA announced exactly how much money they have made over the past three months, and what games are on their way. Unfortunately, two big games have received the delay treatment, namely Crysis and Army of Two. They will both be released after the 31st of March 2007.
The delays were not given a reason, but the report did state that they would be released after the end of this fiscal year, which is the 31st of March. Both games are looking to be excellent, so it’s a shame that we will have to wait longer for them, after they were supposedly going to be released in Winter.
In other game news, many of you will be delighted to hear that Black 2 is in development for the next generation, as is a new Lord of the Rings game.
Several other new titles were unveiled during the call. “There will be another Lord of the Rings [game]… and the next-generation version of Black. Those things alone are all new, relative to fiscal ‘07,” said Jenson.
(Jenson is EA’s chief financial officer.) Apparently it wasn’t made obvious whether the games would be released before the fiscal year end or after. Presumably, since no news on Black 2 has been announced, we will likely see that in fiscal year 2008. And, in case you thought EA would let a movie tie-in slip by, they are developing a new game to accompany the movie version of The Simpsons. Also, Road Rash is in development too; could we see it on the Marketplace?
Talking money for a moment: you will all be surprised to hear that EA’s profits have actually gone down when comparing to the same period last year, rather interestingly; however their revenue has increased. Speculating, I would hint at the fact of next generation game production taking the biggest slice out of profits, since it is considerably higher than it used to be. Especially since EA port every sports game they have too, it can lead to a big chunk of it. Of course, you should wait until their year end before saying EA are losing money.
For the three months ended September 30, 2006, Electronic Arts racked up total revenues of $784 million, a jump of 16 percent over 2005’s second-quarter haul of $675 million. The publisher attributed the numbers to the launch of the latest installments of its annual sports games–Madden NFL 07, NCAA Football 07, FIFA 07, NBA Live 07, and NHL 07. In an investor conference call, EA execs noted that NCAA Football 07 sold an all-time high of 2 million copies in the quarter, and that the company’s NHL series was having its strongest year ever.
Not surprising that sports games have made up a large, if not huge, amount of that figure.
Broken down by platform, the increase was attributable to gains in the Xbox 360 and mobile sectors. The $166 million brought in by EA’s Xbox 360 games accounted for 21 percent of the company’s total revenue, and more than made up for declines in the current-gen platforms. The publisher also boasted that it is now the number one publisher for Microsoft’s next-gen platforms year-to-date in both North America and Europe.
Who didn’t already know that EA is the number one publisher? That certainly isn’t rocket science. Nice to see the transition from last to next gen is beginning to take off, with the current gen sales declining, most probably as people anxiously wait for the Wii and PS3, or for the 360 version to be released. EA would have made even more most probably had Crysis and Army of Two not been delayed.
For the current quarter, EA expects to bring in revenues between $1.2 billion and $1.3 billion, with projections for the full fiscal year ending March 31, 2007 being ticked up to the $2.95 billion to $3.13 billion range from $2.8 billion to $3 billion.
I think EA are hoping for a massive Christmas, and with their Marketplace shenaningans also, I think they will probably do just fine.
Thanks to Colby for submitting one of the links.