Forum Announcement, Click Here to Read More From EA_Cade.
EA's losing money !
keithie13
Posts: 2,722 New Member
Deferred revenue costs force third-party publisher to report $234 million loss despite increase in sales; latest life-sim nears quadruple-platinum stats, EA Sports Active sales top 1.8 million.
The Sims 3 was EA's sugar daddy last quarter.
Following Microsoft, Nintendo, Sony, Capcom, THQ, and Sega Sammy, Electronic Arts has reported its earnings for the quarter ending June 30. Like many of its rivals, the company reported a loss--a $234 million loss, to be exact, on $644 million in revenue. During the same period in 2008, the company reported a $95 million shortfall on $804 million in revenue. Its loss per share was $0.72, compared with a $0.30 loss per share the year prior.
In a post-earnings conference call, EA CEO John Riccitiello blamed the ongoing recession and "the impact of deferred revenue" for the deficit. His company revealed that, outside of generally accepted accounting principles (GAAP), its net loss was just $6 million, versus a net non-GAAP loss of $135 million from April-June 2008. Its non-GAAP revenues were $816 million, and its non-GAAP loss per share was just $0.02, up from a $0.42 loss per share during the year prior.
EA's loss came despite the company declaring itself the top third-party publisher during the April-June quarter. The company singled out Fight Night Round 4, EA Sports Active, and The Sims 3 as its top earners, with the latter two games selling 1.8 million and 3.7 million worldwide, respectively. The NPD Group reported four of the top 10 US game SKUs in June were published by EA: EA Sports Active (Wii, 289,100 units), Tiger Woods PGA Tour 10 (Wii, 272,400), Fight Night Round 4 (Xbox 360, 260,800 units) and Fight Night Round 4 (PlayStation 3, 210,300 units.)
EA Sports Active now holds the distinction of being the best-selling Wii game ever published by EA, claiming a 21 percent share of the North American software market for the console. (In Europe, it claimed a 13 percent Wii market share.) The company has been aggressively going after the Wii market, going so far as to bundle Tiger Woods PGA Tour 10 and the far less popular Grand Slam Tennis with the Wii MotionPlus peripheral in the US and Europe, respectively. EA also released Boom Blox Bash Party, which has sold just over 70,000 units in the US as of June 30, according to NPD.
Looking ahead, EA is sticking to its full-year guidance of $3.7 billion to $3.85 billion in net revenue and a per-share loss of $0.85 and $1.35. Non-GAAP revenue is expected to be $4.3 billion, with per-share earnings of $1.00.
heres the link if you dont believe
http://www.gamespot.com/news/6214761.html?tag=latestheadlines;title;1
The Sims 3 was EA's sugar daddy last quarter.
Following Microsoft, Nintendo, Sony, Capcom, THQ, and Sega Sammy, Electronic Arts has reported its earnings for the quarter ending June 30. Like many of its rivals, the company reported a loss--a $234 million loss, to be exact, on $644 million in revenue. During the same period in 2008, the company reported a $95 million shortfall on $804 million in revenue. Its loss per share was $0.72, compared with a $0.30 loss per share the year prior.
In a post-earnings conference call, EA CEO John Riccitiello blamed the ongoing recession and "the impact of deferred revenue" for the deficit. His company revealed that, outside of generally accepted accounting principles (GAAP), its net loss was just $6 million, versus a net non-GAAP loss of $135 million from April-June 2008. Its non-GAAP revenues were $816 million, and its non-GAAP loss per share was just $0.02, up from a $0.42 loss per share during the year prior.
EA's loss came despite the company declaring itself the top third-party publisher during the April-June quarter. The company singled out Fight Night Round 4, EA Sports Active, and The Sims 3 as its top earners, with the latter two games selling 1.8 million and 3.7 million worldwide, respectively. The NPD Group reported four of the top 10 US game SKUs in June were published by EA: EA Sports Active (Wii, 289,100 units), Tiger Woods PGA Tour 10 (Wii, 272,400), Fight Night Round 4 (Xbox 360, 260,800 units) and Fight Night Round 4 (PlayStation 3, 210,300 units.)
EA Sports Active now holds the distinction of being the best-selling Wii game ever published by EA, claiming a 21 percent share of the North American software market for the console. (In Europe, it claimed a 13 percent Wii market share.) The company has been aggressively going after the Wii market, going so far as to bundle Tiger Woods PGA Tour 10 and the far less popular Grand Slam Tennis with the Wii MotionPlus peripheral in the US and Europe, respectively. EA also released Boom Blox Bash Party, which has sold just over 70,000 units in the US as of June 30, according to NPD.
Looking ahead, EA is sticking to its full-year guidance of $3.7 billion to $3.85 billion in net revenue and a per-share loss of $0.85 and $1.35. Non-GAAP revenue is expected to be $4.3 billion, with per-share earnings of $1.00.
heres the link if you dont believe
http://www.gamespot.com/news/6214761.html?tag=latestheadlines;title;1
0
Comments
for me i think they might go bankruct :!: :?
so i is speekin liek a lolcat.
Sales fluctuate. In times of economic crisis like the US is in now, it's normal for their sales to decrease. They're likely to bounce back.
ya its a lot of reading
but what if they dont :?:
haha
"Games Are Not The Place To Tell Stories, Games Are Meant To Let People Tell Their Own Stories"...Will Wright.
In dreams - I LIVE!
In REALITY, I simply exist.....
Everyone is losing money in the video game sector (and everywhere else as well). What goes up must come down, especially in this economy. Most companies will break even at the end of the year or even in the first quarter of next year due to holiday sales and gift card rubbish.
The fact of the matter is, EA is changing with the times. While they may be taking losses with things like video games, they're making it back in things like social platform gaming and cellphone apps.
This thread is just late night FUD.
I don't understand how the Store can be LOSING money (muchless enough money to exaggerate the bankruptcy suggestion of yours) when it's a sort of situation where "someone spent two hours making this hair, but it will be up at the Store for the entire lifespan of TS3 which may or may not be many many years."
Keithy, You say EA are losing money because people aren't using the store.
I hardly think that the store is the profitable thing in their portfolio of things they own.
-Snowmoon
-Here have a cupcake-
The Redwood Shores/Studios (Visceral Games) subsidiary now handles all TS3 related things including the upcoming EP.
OMG CONSPIRACY!!!
is it a conspiracy lol :shock:
AMG EA IS GOIN BANKRUPTS, FREE STORE ITEMS FOR EVERYONES! LOOT AND PLUNDER!!1
AAHHHHHH T1M3 4 L00T1NG! L00K 4T MY L00TING SKILLZ!!
i run for the store pushes aarin out of the way to get the good stuff lol and i i said was that they are losing money and that i though they might go bankrupt and said people to post there own comment :!: 8)
would buy them lol but if it did i would go to the store and buy hella stuff lol :!: