By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales Discussion - EA gives numbers breakdown by console and retailer F the NPD

@onimusha

I think the crap games argument just isn't holding water anymore. We all saw how Corruption did, and it was one of the big three. Unfortunately even fantastic games can do poorly comparatively speaking. The question isn't so much quality as what exactly Wii owners want. After all Madden sold fantastically on the 360. While two incarnations of the series have sold poorly on the Wii. Madden has almost always been a golden cow. You know gamers should not bow down before it year after year. However somehow you find millions of gamers doing it. Except on the Wii.

I think its less a question of what is considered quality, and more a question of what kind of games appeal to the majority of Wii owners. In that regard Electronic Arts is at the very least trying to figure that out. They are throwing out different games trying to see what will stick. They even have a studio dedicated to making games for the newly discovered casual market. They are probably the first developer to come to the realization that the Wii is a fundamentally different market compared to the other market that makes up PS3 and the 360.

There are a lot of things to jump on EA for I am just not sure its their support of the Wii. They are making a decent effort of it. What more could someone expect.



Around the Network

>>
Probably going to see more wii exclusives from ea like my sims, given that the sports games aren't what is brining them revenue on the wii
>>

On the contrary, if I were an EA exec, I would be asking - why the hell havn't we had a 360 Sims release yet?



Well that makes more sense now. I suspect the PS3 sold more games than the Wii (for EA) but greater development cost, licensing fees, blu-ray costs really impacts developer revenue on PS3 sales, therefore even with lower sales, Wii generates much more revenue.



 

Gamerace said:
Well that makes more sense now. I suspect the PS3 sold more games than the Wii (for EA) but greater development cost, licensing fees, blu-ray costs really impacts developer revenue on PS3 sales, therefore even with lower sales, Wii generates much more revenue.

The chart list "Net Revenue" which is just game sales. 

Production costs, manufacturing costs, licencing are "Cost of Goods Sold"



Great Wii software sales like usual... EA is obviously making some good money from the console.



carlos710 - Capitán Primero: Nintendo Defense Force

"Wii are legion, for Wii are many"

Around the Network
Legend11 said:
I think part of the reason the PS3 numbers may be so low (aside from the PS3 installed base in North America) is that I remember reading someplace that third parties pay more to publish PS3 games (licensing fees, blu-ray discs).  The first part may have changed with the PS3's fortunes but the cost of Blu-Ray media is still obviously more expensive than single and dual layer dvd media.

Licsencing makes sense.  Not BR discs though.  That shouldn't be taken out of revnue since revnue is just straight money taken in before you take out costs.



Gamerace said:
Well that makes more sense now. I suspect the PS3 sold more games than the Wii (for EA) but greater development cost, licensing fees, blu-ray costs really impacts developer revenue on PS3 sales, therefore even with lower sales, Wii generates much more revenue.

Revenue is the gross amount of money you pull in.

 If you sell 8 widgets for 100 dollars, which cost your 80 dollars to make  You've brouht in 100 dollars worth of revnue.  Revenue is just the total amount of money brought it.  Costs don't get taken out of revenue.

Licensing fee's if on a per game basis, i can see being not considered in revenue because that money extra could be going straight to Sony.  Blu-ray discs and development costs should have no effect on revenue as you don't take operating costs out of revenue.

What you're talking about is "net income".

 This would mean, after everything was made.  EA brought in 17 million from stores who bought PS3 products.  Not counting expenses.  If those expenses were greater then 17 million via things like development and discs, the PS3 sector likely caused them a loss.

Likely it hasn't though, as on the needed reprots they'll shift most of Maddens development costs onto the 360 version which will make a profit anyway to make the investors more at ease.



EA sure did bet badly this gen. For all the selling prowess of the 360, it, along with the Wii and PS3, couldn't make up for EA's declining last gen and portable sales. Add in the much higher cost of PS360 game development and no wonder EA is laying off workers and shuttering studios.



First, the positives for EA. 360 software sales are really good, almost as high as PS2 sales were last year (360 did $218m revenue in Q3 07, PS2 did $269m in Q3 06). The Wii didn't even exist last year, and revenue sales are quite strong on that platform as well. I'm not going to lie, I was shocked to see that the Wii revenue from EA was almost as high as the PS2 revenue for this quarter. DS revenue is also up enormously as well (from $14m last year to $47m this year).

Now the bad news. Revenue as a whole is down significantly from this same quarter last year, down from $784m to $640m. (It's also down for the six-month period, so this is not an isolated quarter.) In other words, as great as 360 sales may be, EA is still bringing in a lot less money than they did with the PS2 last year. When you consider that development costs for the 360 are almost certainly higher than they were for the PS2... well, that's a problem. The net income (profit) numbers probably look a lot worse than this. I've been predicting for some time that this would be the first fiscal year in ages that EA would post a total net loss, and data like this seems to indicate we're headed down that path.

The PS3 numbers are just awful. There's no possible way EA is even close to turning a profit on that platform; only $17m in REVENUE (not net income)?! Heck, the XBox pulled in $12m and it's a dead platform! PSP revenue was also down by a lot; $64m last year to $21m. It's extremely obvious from that sales chart that EA expected the PSP to trounce the DS, and is only now switching gears between the two. You can bet that EA is regretting their heavy investment in Sony's platforms now.

Expect to see a lot of support in the future for the 360, somewhat less support for the Wii, and a sharp cutback in PS3 projects.



My Website

End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)

WiiStation360 said:
Gamerace said:
Well that makes more sense now. I suspect the PS3 sold more games than the Wii (for EA) but greater development cost, licensing fees, blu-ray costs really impacts developer revenue on PS3 sales, therefore even with lower sales, Wii generates much more revenue.

The chart list "Net Revenue" which is just game sales.

Production costs, manufacturing costs, licencing are "Cost of Goods Sold"


Yep, what would really be fascinating is if they released R&D, marketing and other costs per console.  I have a distinct impression that PS3 would come off looking even worse with such information.

In Memoriam RVW Jr.

SSBB Friend Code = 5455-9050-8670 (PM me if you add so I can add you!) 

Tetris Party Friend Code = 116129046416 (ditto)