Electronic Arts now does more business via digital channels than physical retail, according to its latest financial results.
EA has reported a US$308m loss for the quarter ending December 31 – a big decline on the $45m loss reported in the same quarter last year.
Revenue fell $112m to $808m. Digital revenue climbed from $321 to $410m but packaged goods revenue fell from $568m to $370m. Digital accounted for over 50 per cent of all earnings
Net income increased from $176m to $398m.
For the year ending December 31st net revenue fell from $3,956 to $3,661 with last year’s $175m income becoming a $36m loss.
EA added that it was the No.1 publisher on PS4 and Xbox One throughout December, accounting for 35 per cent of all next-gen software sales. FIFA 14 and Battlefield 4 were two of the three best-selling games “across all platforms in the Western World”.
FIFA Ultimate Team, Madden NFL Ultimate Team, and NHL Hockey Ultimate Team saw collective digital revenue growth of 60 per cent year-on-year. Mobile and handheld digital revenue grew 26 per cent to $125m. To date, The Simpsons Tapped Out has generated $130m in digital net revenue.
“EA’s third quarter marked an exciting start to a new generation of games,” CEO Andrew Wilson said. “In addition to consoles, our mobile games, digital downloads and live services are growing year-over-year as we continue to deliver exciting new experiences to gamers around the world.”