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Forums - Sales - Electronic Arts posts $454m FY loss

@EvilAvatar

You forgot to deduct VAT from European game price. Going on your $93 price that comes down to $79 with UK VAT @ 17.5%. Then consider that European retailers work on larger profit margins than US retailers and the money EA receives from their customers (retailers) isn't massively different between the US and EU. I'm sure they make more money on European sales, but it's not that much more.



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EvilAvatar said:
FilaBrasileiro said:
 
 

I still don't think that would be enough for the PS3 to be ahead of the 360 in terms of revenue WW. The only EA game that I can find that has sold better on the PS3 than the 360 is FIFA 08 and UEFA Euro 2008. I know the vgchartz fanboys are gonna hate me for this comment but unless there's some exclusive EA game out there for the PS3 that I don't know about, I think the only plausible explanation is that vgchartz has undertracked PS3 games.


 


USA game - 60 dollars

Euro game - +-93 dollars

PS3 sells better at Europe. X360 sells better at USA.

 While that's true, and the PS3 version of Burnout Paradise, FIFA 08, FIFA Street and Need for Speed Pro outsold its 360 counterpart in Europe, it didn't do it by a significant enough large number to make that much of a difference in revenue.

 



BKK2 said:
EA: Rock Band Sold 1.5m In Q4, Madden Going 'Holographic'

EA: Rock Band Sold 1.5m In Q4, Madden Going 'Holographic' In its call with investors following Q4 and 2008 fiscal year results, EA executives revealed that Harmonix/MTV's Rock Band has sold more than 1.5 million copies during the quarter, commented on the state of the PC games industry, and gave some direction on where its attempted Take-Two acquisition stood.

In its coming year, EA execs said the company plans to release some 55 games, including 30 for PS3 and Xbox 360, over 20 for the Wii, 18 for the DS, eight for the PSP, 30 for the PC, and 15 for the PS2.

That includes the previously reported new Sim Animals franchise, and a 20th anniversary edition of Madden, which will utilize what CEO John Riccitiello called a "holographic interface" -- but added no further details on what precisely that meant.

Asked to comment on the state of the PC gaming industry, Riccitiello admitted that "the box side" of PC gaming is "soft," and has been soft for some time. "Were it not for Sims and World of Warcraft," he added, "it'd be a pretty dismal sector."

However, he was quick to add that subscription, microtransaction, and casual based businesses are centered on the PC, and with that factored in, the platform has been "growing for several years," but was being somewhat ignored and "categorized wrongly by looking at the box side."

Finally, asked to comment on ongoing negotiations to acquire Take-Two, Riccitiello added that while there was very little he could say, the current $25.74/share, roughly $2 billion valuation, contrary to Take-Two's statements, "fully took into account Grant Theft Auto 4," which he praised as a "spectacular game."

As far as next steps went, Riccitiello said EA is currently working with the Federal Trade Commission on the deal, adding that "we don't believe our proposal is anti-competitive," but said the "timing is in their hands."


Link

 Does this mean 1.5 million in Q4 alone?



Rock Band Sold 1.5m In Q4

Rock Band has sold more than 1.5 million copies during the quarter

Does this mean 1.5 million in Q4 alone?


Sounds like it.



Played_Out said:
I think some people here just read the title and not the content of the original article. It actually shows that EA are doing really well, as they have increased YoY sales and acquired assets that are far in excess of their losses.

And you likely don't understand how M&A economics work, as purchased assets are factored in to yearly revenue streams. 

You pay 800 million for BioWare/Pandemic, for example, and you simultaneously increase your yearly revenue by increasing assets by 800 million (unless it is unanimously agreed that EA overpayed, which it was, by about 138 million dollars). The net result is on net income is 0 (or -138 million, in the case of Bioware/Pandemic).

Increasing revenue isn't all that significant unless there is profit growth paralleling it, which there isn't. Revenue has gone up, YoY, for 5 years straight -- and profits have gone down, YoY, each and every one of those years.

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jheco05 said:
So less their big acquisition, EA actually made money.

No. Again, M&A are already balanced before net income is calculated. EA plain old, flat out, lost money. 

 

 

 

Sullla! Paging Sullla! I need your EA yearly profits thread again. Can you find it for me one last time? Pretty please? :( 



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$454 million is a spash in the ocean for EA. Rich a$$ company



We should seriously start a boycott on EA products...

Isn't Boob Blox made by EA?

Acually EA isn't too bad. :)





If EA has to do their hostile takeover of Take Two, which they took out a 1 billion dollar loan for it, they will lose a ton of money as they will have to buy stock from 51% of stockholder. That is a massive lose to them. A painful one at that if from what I heard.

All of the 2K and R* dev teams is prepared to quit if EA successfully buys out TT.



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Bodhesatva said:
jheco05 said:
So less their big acquisition, EA actually made money.

No. Again, M&A are already balanced before net income is calculated. EA plain old, flat out, lost money. 

 


I don't get it. The $620 million expenditure for aquisitions of Bioware & Pandemic is higher than the $454 million net loss. That should mean 620-454= +$166 mill profit for the "EA plain old", just like jheco05 said.

Care to explain?