Game developer and publisher, Electronic Arts reported their current fiscal earnings today that missed analysts’ predicted forecast due to bombed Battlefield 2042 launch and continued fall in player numbers.
EA is popularly known for its sports game FIFA and shooter Battlefield which are the biggest earners for the company every quarter. The company reported that more than 71% of its revenue was earned from live service games with FIFA leading the charts yet again.
For this fiscal (fourth quarter), EA reported revenue of $1.75 billion, missing analysts’ expectations of $1.77 billion revenue. Earnings per share, excluding some costs, were $1.46, compared with the average estimate of $1.42.
The last major release from EA was Battlefield 2042 in 2022 which flopped hard and failed to capitalize on the popular IP. EA has yet to release a major game this year while the fallout from Battlefield 2042 is still being dealt with stealthy. Previously, EA had acknowledged that BF2042 failed to meet its expectation and promised to fix the game as well as add more content this year.
Right before the earnings call, EA also announced that its lucrative 3-decade-long licensing deal with FIFA is coming to an end. Starting in 2023, the FIFA branding will be dropped in favor of EA Sports FC branding. EA also said that more information about the new franchise will be shared as early as July 2023. This year’s football game will be last with FIFA branding and will be called FIFA 23. EA is also planning to release a new entry in its annual Madden NFL franchise this year.
In the earnings call, EA also mentioned that information about the upcoming Star Wars titles, such as a sequel to 2019’s popular Star Wars Jedi: Fallen Order will be shared soon and a release is expected later this year. On Monday, EA announced that it’s developing a mobile game based on the popular fantasy franchise The Lord of the Rings, in partnership with Middle-Earth Enterprises. The company is also looking to tap into the lucrative mobile market with its Battlefield Mobile game very soon.