Here's another source, dutch this time: https://www.nieuwsblad.be/cnt/dmf20180909_03725401
It states that loot boxes make up 67% of EA's revenue, or 3 billion Euros (about 3.6 Billion Dollar). Your 800M figure is certainly either wrong under those circumstances or way outdated. So my 5.15B that I stated before could have been the whole revenue, but considering that over two third are from Lootboxes, it's still way over 800M
@bold: That's quite probably because you can't spend money. These types of games are made excessively grindy just because it sells ways around the grind like lootboxes, premium currencies and the like. However, if you can't bring the things to get around the massive grind, better remove it as well to not alienate everybody. Since EA loves to region Lock and Region Code, I'm pretty sure they did just that by increasing probabilities of getting better players.
Great, Dutch. What I get from google translate is that that's not even just loot box revenue. Rather just all digital revenues, and not exclusive to FIFA either. My $800m figure may be outdated, but at least it was definitely for FIFA packs and only FIFA packs.
And no, I didn't play the game a lot (and therefore earn the team I had) because I couldn't spend money, I did it because I enjoyed playing the game. And it's region locked in that your PSN account and copy of the game need to be from the same region in order to buy packs, there's nothing changed or removed in different region versions of the game.
I checked to find better souces because it seemed a bit muddy for me too. So I came across their Quarterly report. Here are the slides: https://seekingalpha.com/article/4190939-electronic-arts-inc-2019-q1-results-earnings-call-slides and here's the full transcript, happy reading :https://seekingalpha.com/article/4190960-electronic-arts-ea-q1-2019-results-earnings-call-transcript
The 5.15B$ that I said before turn out to be total revenue last Financial Year, and EA is expecting 5.6B$ for this FY. So no, not just Fifa here.
3/4 of those 5.6B are expected to be digital goods, while last FY it was just two third (the 67% of the Nieuwsblad article).
The 3 Billion stated in that article seem to be EAs digital good sales on PC and consoles and mobile (3.550 Billion combined, out of which only 656 Million are from mobile games, so basically 3 Billion $ for PC and Consoles).
Out of those 3.55 Billions, only 668M are from game downloads, while a whooping 2.226B are from Live services (Loot boxes, DLC and Microtransactions)
Out of all their Live services, Fifa's Ultimate Team mode should be by far and large the biggest one. Considering the games in that list in the report, I could easily see Fifa taking up about 60% of those 2.226B, meaning 1.4-1.5B$. Much less than the numbers quoted before, but also quite a bit more than the 800M you posted. However EAs digital sales are exploding since FY 2016 (April 2015-March 2016), as they had 2.4B in digital sales back then and only 2 years later over 1 Billion more while physical sales contracted by less than 300M. Considering that both mobile games and digital game sales are pretty low, the only reason can be that their live services ballooned. Madden and especially UFC are way smaller than Fifa (probably around 5M and 2M including digital for both compared to the 24M of Fifa), SWTOR is slowly dying for years now, Sims 4 had very bad reviews and sales, SW BAttlefront II their lootboxes deactivated, Battlefield One Season Pass is just a season pass (thus not outselling the base game) and EA Access only started then. That basically just leaves Fifa for the brunt of those sales. In fact, the transcript gives us just that:
Blake J. Jorgensen - Electronic Arts, Inc.
Yeah. We – thanks, Brian, yeah, thank you. We typically don't break out Ultimate Team on a quarterly basis, but you should assume that Ultimate Team is over 50% of the live services component in any one quarter and certainly in the quarter that we just closed out..
So more than 1.1 Billion $ confirmed for FUT
Oh, and for those who think that those things are necessary for Publishers to stay alive because 60$ games wouldn't be enough to cover their expenses, think again: EA has a gross Profit margin of a whooping 75%. Not sure if even Apple has such a high profit margin.
Btw, from the transcript I learned that there's a Fifa mobile, so it even takes a part of that mobile pie, too.
Edit: All these news in quick succession are bad for EAs bottom line, especially their stocks. Their shares were at almost 150$ in late July but have dropped to 110$ one month later. And even investors think that's just the tip of the iceberg: https://seekingalpha.com/article/4205240-electronic-arts-bear-news-cycle-just-beginning
Last edited by Bofferbrauer2 - on 13 September 2018