Jessica Clement
Senior research expert covering video games
Electronic Arts (EA) - Statistics & Facts
Gaming giant Electronic Arts, more commonly referred to as EA, is known for many things. Chart-topping gaming titles such as Apex Legends, The Sims, and most importantly, the soccer management series FIFA, now freshly rebranded as EA Sports FC, represent one side of the gaming business. However, a fair share of controversy and turmoil regarding the workplace environment and highly-criticized gaming monetization practices are featured in the other.
Although EA produces and publishes games for all major gaming platforms, the company consistently generates approximately two-thirds of its revenues via console games. In the fiscal year 2024, EA generated almost 5.55 billion U.S. dollars in live service revenues. These live services include extra content, subscription offerings, and other revenue generated outside of the sale of the company's base games.
Additional digital content includes loot boxes, consumable virtual items that are bought with real-life money, which can be redeemed to receive a randomized selection of further virtual items or loot, ranging from simple customization options to game-changing equipment such as new weapons, armor, or characters. Loot crate mechanics have become highly criticized , with opponents comparing the practice to gambling and pay-to-win gameplay. EA is no stranger to loot box controversy, and the company has faced several class-action lawsuits regarding the matter.
However, the strength of EA’s most prominent products was not enough to protect the company from the ongoing tech and gaming industry struggles, which, between 2023 and mid-2024, resulted in the cancellation of multiple games in development, including mobile versions of Apex Legends and Battlefield, and several rounds of layoffs at a number of its owned studios. These events also led to a company restructuring, and as of now, the EA is organized into two main divisions: EA Sports and EA Entertainment. This move highlights the importance of sports games to EA as the company attempts to navigate an industry in turmoil. However, it remains to be seen if focusing on its owned franchises and moving away from licensed IP properties will be the winning move for the gaming giant.
EA is one of the heavyweights of the gaming industry
Electronic Arts owns and operates major gaming studios in several countries, including notable subsidiaries such as BioWare, Codemasters, DICE, PopCap Games, and Respawn Entertainment. With more than 7.5 billion U.S. dollars of annual revenues and a net income of 1.27 billion U.S. dollars in its most recent fiscal year, Electronic Arts (EA) is one of the biggest players in the gaming industry worldwide.Although EA produces and publishes games for all major gaming platforms, the company consistently generates approximately two-thirds of its revenues via console games. In the fiscal year 2024, EA generated almost 5.55 billion U.S. dollars in live service revenues. These live services include extra content, subscription offerings, and other revenue generated outside of the sale of the company's base games.
Monetization strategies and loot boxes
Live services are Electronic Arts’ biggest revenue segment. This is hardly surprising, as gaming companies aim for players to engage with their games and services over more extended periods of time, and the extra paid content is designed to extend and enhance gameplay and user engagement. EA’s most popular live service product is the extra content purchased for the Ultimate Team mode associated with its sports franchises EA Sports FC and Madden NFL.Additional digital content includes loot boxes, consumable virtual items that are bought with real-life money, which can be redeemed to receive a randomized selection of further virtual items or loot, ranging from simple customization options to game-changing equipment such as new weapons, armor, or characters. Loot crate mechanics have become highly criticized , with opponents comparing the practice to gambling and pay-to-win gameplay. EA is no stranger to loot box controversy, and the company has faced several class-action lawsuits regarding the matter.
Sports games as company focus through dark times
EA Sports FC (known as the FIFA series until 2023) and Madden NFL are Electronic Art’s flagship franchises, with new versions published every year. New EA Sports FC series releases sell millions of copies within the first month of release and titles from the series regularly rank among the best-selling games of the year.However, the strength of EA’s most prominent products was not enough to protect the company from the ongoing tech and gaming industry struggles, which, between 2023 and mid-2024, resulted in the cancellation of multiple games in development, including mobile versions of Apex Legends and Battlefield, and several rounds of layoffs at a number of its owned studios. These events also led to a company restructuring, and as of now, the EA is organized into two main divisions: EA Sports and EA Entertainment. This move highlights the importance of sports games to EA as the company attempts to navigate an industry in turmoil. However, it remains to be seen if focusing on its owned franchises and moving away from licensed IP properties will be the winning move for the gaming giant.
Jessica Clement
,
Jul 18, 2024
Jessica Clement
Senior research expert covering video games
