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E3: EA Looks To Double Downloadable Content Revenues
by Eric Caoili [PC, Console/PC, E3]
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June 16, 2010
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Sharing its plans and expectations in an investor briefing earlier today, Electronic Arts said it aims to double its revenues from downloadable content and DLC packs for consoles in the current fiscal year (ending March 31, 2011).
The company said downloadable content for consoles has been a fast growing segment for its digital offerings, pointing to the popularity of XBLA/PSN-only release Battlefield 1943 and DLC packs (e.g. map packs, special outfits/accessories).
EA emphasized building its digital revenues in the investor meeting as one of three strategic objectives it's currently focusing on. The publisher noted that the fastest growing segment in the gaming industry is digital, and that its revenue from that market has increased 33 percent to 570 million in the past fiscal year.
While EA sees digital sales as an important component of its operations, the company cited driving its packaged goods business as another strategic objective. The Redwood City-headquartered firm forecasted a jump in its average revenue per title from 66 million last fiscal year to 84 million in FY 2011.
This increase will be necessary as the publisher moves to produce "fewer but bigger and better" titles. It plans to publish only 36 "frontline" games this fiscal year, compared to the 54 titles it released in FY 2010.
As for its goal to produce "better" releases than its competitors, the company pointed out that it's well ahead of any other third-party publisher in terms of the total number of games with an average review rating of 80 or higher on Metacritic.
The third strategic objective EA called attention to involved improving its cost management and overall efficiencies. It has been focusing on this initiative by reducing its overall headcount while increasing resources in low cost locations, like its Shanghai and Hyderabad studios.
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Ahem... corporate bullshit to english translation: EA is laying off US and Canadian workers then outsourcing the work overseas in order to use the savings to fund CEO and board member bonuses along with share holder dividends. Welcome to the wonderful world of trickle down economics folks. Is it everything you dreamed of when you voted Republican? What? You believed them when they said corporations outsource work so they can keep the price of products low? Excuse while I throw my head back and laugh... ha, ha, ha!