Electronic Arts recently published its annual report for the past fiscal year. The publisher tripled its profits.
Not only did EA present the plans for upcoming games, the detailed annual report of last year is now available. Especially the idea of offering games as a “live service” seems to be a positive development.
In total, the company was able to record a profit of over three billion dollars. Last year it was one billion. But beware: half of this year’s profit comes from a one-time tax refund of 1.5 billion.
In fact, the profit generated increased by 50%, from about one billion to 1.5 billion.
Full-price titles account for only a small part of the income
Digital sales accounted for 78% of net bookings last year. So less than a quarter of the revenue comes from the games you can buy in the store.
The majority of digital sales come through so-called “live services”. These include skins in Apex Legends or card packs in FIFA 20, which alone have generated over $2.2 billion in revenues for EA.
Next quarter starts with remakes
Despite this success with microtransactions, the next games that Electronic Arts has planned for the first quarter of the new fiscal year are remakes. These offer few opportunities for DLCs. But we won’t know whether this will have an impact on business figures until a year from now.