‘Star Wars’ puts EA way ahead of fiscal expectations

‘Star Wars’ puts EA way ahead of fiscal expectations

Electronic Arts (EA) announced their financial results for the company’s second fiscal quarter on Thursday, and they have exceeded expectations.  


The video game developer received a non-GAAP net revenue of $1.146 billion, when they were attempting to reach $1.075 billion. EA’s rising revenue comes as a surprise to many, since EA was voted “worst company in America” in 2012 and 2013. At the time, they were faced with shrinking stock prices that dropped to as low as $12 a share, but now prices are over $70 each. EA’s Chief Financial Officer, Blake Jorgensen, believes the release of “Star Wars: Battlefront” will help continue their growing momentum.       



“Based on the ongoing strength of our business and reception of ‘Star Wars: Battlefront,’ we are raising our full-year outlook for the second time,” said Jorgensen.


After a successful beta testing phase, EA has increased expectations for the November sale of “Star Wars: Battlefront.” Originally, EA estimated that around nine million copies of their new “Star Wars” game would sell for the 2016 fiscal year, but after almost 10 million gamers played the open beta, they increased their prediction to 13 million sales. The CEO of EA, Andrew Wilson, believes that the “Star Wars” brand is drawing in different demographics of gamers that are equally beneficial to the company’s continued growth.     


"Star Wars: Battlefront" screen capture

“Star Wars: Battlefront” is significantly impacting EA’s performance this quarter. (Forbes)

“What we have seen is that Star Wars is bringing in two groups that are very important groups to us,” said Wilson. “One are gamers that have lapsed, traditionally who have been big gamers in the past and maybe haven’t played in awhile.” The second being “a new younger age demographic.”


Wilson has said that EA plans on developing more “Star Wars” titles after the Nov. 17 release of “Battlefront.” This move could help the company’s growth as long as they spend as much time on their future titles as they did on “Battlefront;” otherwise, they run the risk of sacrificing quality for quantity.


Will “Star Wars: Battlefront” be a massive success or a huge flop? What do you predict will happen to EA’s finances in 2016? Leave a comment or talk to me on Twitter @Karbowski_Devon.


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