Print 69 comment(s) - last by FaceMaster.. on May 20 at 3:26 PM

27 EA games last year went platinum, 15 went double platinum

In one of the biggest years ever in gaming, Electronic Arts posted a $454 million net loss in its fiscal 2008. That may come as a bit of a surprise, given that 27 of EA’s titles this year sold more than 1 million units, and 15 that sold more than 2 million.

In fiscal 2007, EA had 24 titles that surpassed the million mark, but managed a net income of $76 million. That’s not to say that EA just finished a bad year – far from it, as the games maker reported a net revenue of $3.665 billion in fiscal year ended March 31, 2008, up 19 percent as compared with $3.091 billion for the prior year.

In fact, the past fourth quarter was a record setting one, with sales up 84 percent to an impressive $1.13 billion. The record period was driven by PlayStation 3 and Xbox 360 cross-platform titles Burnout Paradise, Army of Two and Rock Band. Despite that, net loss for the quarter was $94 million as compared with a net loss of $25 million for the prior year.

The cause for the loss can be partly attributed to the acquisition of game development studios BioWare Corp. and Pandemic Studios in a deal worth $860 million. Though not exactly of the same acquisition type, EA managed to lure former top Microsoft executive Peter Moore away from the Xbox business to helm EA Sports.

It’s clear that EA’s not finished in growing its family just yet. The massive game publisher recently borrowed $1 billion from Morgan Stanley and other lenders to help finance a possible acquisition of Take-Two Interactive.

EA also had other victories during the year, including it claiming itself the number one publisher across all platforms in North America with 19 percent share and in Europe with 20 percent share. The Sims franchise surpassed the 100 million copies sold milestone, with plenty more on the way. EA also secured exclusive rights from Hasbro to create games based upon intellectual properties including Monopoly, Scrabble, Yahtzee, Nerf, Tonka and Littlest Pet Shop.

EA CEO John Riccitiello earlier this year said publically that it’s his aim to improve the management of work environment of the company’s developers and other employees. In the recent financial report, EA revealed that a December 2007 employee satisfaction survey showed significant improvement over the last appraisal in 2004. Results included a double-digit gain in employee engagement.

"A year ago, we committed to an aggressive change agenda at EA. Our employees stepped up to the challenge and we finished fiscal year 2008 with non-GAAP revenue up 30% to $4 billion – a record for any third-party publisher. Our operating margins were flat to our prior year. On balance, we're very pleased with our revenue growth, but not yet happy with our profit margins," said Riccitiello. "In fiscal 2009, we expect to deliver another $1 billion in revenue growth and to double our operating profit on the strength of our slate of titles."

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: EA is Huge...
By FaceMaster on 5/20/2008 3:21:50 PM , Rating: 0

Crysis looks better than Descent 3. End of. Descent, when it came out, was probably more demanding than Crysis when it came out. All things are relative and in 1998 Descent's graphics were the ULTIMATE SEX. Bit like your Mum(s).

Also STFU with this '8800 GT is shit' thing, IT ISN'T. It's pretty much the same as the 9800 series, apart from about 5 - 10 % slower... 35 fps instead of 31?!?! OMFG WOW. The 9800 series is merely a slightly overclocked 8800 series. 9900's will be much better, bit like your Mum, with far more bump mapping and pixel shader techniques, as well as vertex mapping and floating points. Overclocked RAM makes for a far more exciting experience, especially late at night which is when I'll be using it.

So there. Pirks STFU because we all don't care about your 9800 because it'll be rendered obsolete as soon as the 9900's come out in about 3 seconds time. And don't think I'm done with you, Quiscent. Descent looks great for the time, but WTF are you on about, 'couldn't run it on highest until 2 years ago'?!?! LOL I mean Crysis will be able to be run on low range laptops in about 5 years time, just as far cry can right now.


"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki