Digital Sales Account for 60% of EA Revenue - News
by William D'Angelo , posted on 02 August 2017 / 5,768 Views
Electronic Arts has released its quarterly earnings report for Q1 2018, which ended on June 30, 2017.
Total net revenue hit $1.4 billion, an increase of 14 percent year-on-year. Digital sales accounted for 60 percent of the revenue, with $879 million. Retail sales and other accounted for $570 million. For the last 12 months digital accounted for 63 percent of the total net sales. That is a 23 percent increase year-on-year.
Net sales for the quarter were $775 million, up $93 million year-on-year. This was driven by sales of Mass Effect Andromeda and FIFA.
"Q1 was an outstanding quarter, with thriving player communities in our top franchises like Battlefield, our EA Sports portfolio, Star Wars, and The Sims continuing to grow our network and drive our digital business,” said Chief Executive Officer Andrew Wilson.
"We have built strong momentum, and now we are accelerating into a year of tremendous innovation, where extraordinary new games, content-rich live services, and expanding global competitions will deliver more fun for our players and fuel growth for Electronic Arts."
CFO Blake Jorgensen added, "We had a great start to the fiscal year, primarily due to our event-driven live services. Our operating cash flow was the highest ever for a first quarter, and underlines how live services have fundamentally transformed our business model. Driven by innovation and live services, we expect to continue to grow our profitability and cash generation."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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I'd like to see a break down of each area. DLC, game, etc.
I went 100% digital with the X1. And am slowly converting my 360 games to digital too. Just got tired of lugging boxes of discs around. Although my 5TB HD recently just died so...
Physical sales make less money then Digital for EA/Developers
So there are proberbly still more Physical games sold but the revenue is higher on digital.
Its only a matter of time untill Digital is the only option left, best for developers but lets hope the policies, servers and everything else are in order for consumers too
I decided to go all digital shortly after the start of this gen and am an EA Access subscriber although I am debating the value of it; after a great start the value proposition is lacking this year i feel, especially given the fact that I'm not a big sports game user aside of Fifa. That being said, its probable that EA Access has been a significant driver behind the increased digital revenue.
I was full digital with 3DS and Wii U. But the Switch made me mostly go retail again. It's mostly cheaper though :-D.
