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EA Q3 results – The Old Republic out “calendar 2011″

Tuesday, 1st February 2011 21:15 GMT By Staff

EA has announced third quarter results, confirming that both Medal of Honor and Need for Speed: Hot Pursuit have now sold more than 5 million units and announcing an “expected” calendar 2011 release date for BioWare MMO Star Wars: The Old Republic.

EA’s Q3 financials

Star Wars MMO confirmed for calendar 2011 release, will be profitable at 500,000 subs.

“Very exciting,” unannounced FPS coming “later in the year.”

Five games over 5 million sales in 2010.

FIFA 11 at 11.5 million sales.

Madden 11 at 5.5 million sales.

Loss at $322 million, up from $82 million year-on-year.

EA said it is incurring “significant” costs in developing the game, which will hit “after the close of fiscal 11,” putting the title in a release window between March 31, 2011 and December 31, 2011.

It was rumoured last week that the title would ship in September 2011.

EA has previously said that it is “targeting a spring 2011 release” and confirmed in May last year that the MMO wouldn’t make this financial year, which ends March 31, 2011.

John Riccitiello refused to be drawn on the game’s headcount, saying he was “subject to NDA” with the firm’s Lucas partnership.

The exec did take the opportunity, though, to warn against “falsehoods” being spread by “gamer blogs” about costs releated to the project.

EA is rumoured to have spent between $100-$300 million on the game, but Riccitiello said the number was “higher than anything we have ever put in place”.

The Old Republic will be profitable with 500,000 subscribers.

“Light sabers versus swords”

He added that the game would succeed thanks to a “light sabers versus swords” factor, talking in veiled terms about World of Warcraft, and that the company would be “aggressively” attacking the game’s opportunity.

The exec said that 1 million subscribers “rings our bell, does very well for us economically,” in relation to The Old Republic, adding, “It’s our view that we can be very successful without fundamentally challenging the market leader because we think we’ll probably hit the smaller competitors harder when we get out there.”

He said that The Old Republic will be profitable with 500,000 subscribers.

Janco Partners’ Mike Hickey said in January that he believes investors are “betting against” the game’s success.

Riccitiello also said EA is to announce a “very exciting” FPS later in the year.

“I’ve been saying that it’s our long-term goal to take back the first-person shooter category leadership. We made strong progress in calendar ’10 over calendar ’09,” he said.

EA has a “very exciting,” unannounced FPS entry “later in the year”

“This year, with the trail end of Battlefield Bad Company 2 still doing well, Medal of Honor doing well, Crysis [2] and Bulletstorm, we’re clearly going to make more progress on our goal, and that’s before we get to what I think is going to be a very exciting entry later in the year that we’re not yet announcing.”

Future plans aside, EA was keen to focus on high sales of games in the last calendar year.

FIFA 11 has now sold more than 11.5 million units, a 16 percent increase over the 2010 version, the company said in a call following the release of the figures.

Madden 11 has now sold over 5.5 million units. Sales of over 5 million units were achieved by five games last year, the publisher said.

The moment of truth: “calendar 2011″ for TOR.

EA COO John Schappert said that Dead Space 2 was “approaching 2 million units sold-in”: the Visceral horror sequel released last week. The sequel is outselling the original 2:1.

Despite large sales of key products, however, EA posted a gloomy net loss of $322 million for the quarter, deepened from the $82 million loss posted a year ago.

Net revenue decreased year-on-year for the three months ending December 31, down to $1.05 billion from $1.24 billion in the previous corresponding period.

Digital revenues increased steeply, though, up from $152 million in the previous third quarter to $211 million in Q3 2011.

The Old Republic. Out. This year.

“We had a solid third quarter with non-GAAP earnings up more than 75 percent year-over-year,” said Eric Brown, Chief Financial Officer.

“EA reported 39 percent growth in digital and is tracking toward our $750 million full year non-GAAP digital revenue target.”

“We are pleased to report another strong quarter,” said Riccitiello.

“Our $600 million stock buyback demonstrates our confidence in EA’s digital strategy.”

Digital explosion

In year-over-year growth, EA reported accelerated results in the digital and high-definition packaged sectors, while standard definition and distribution businesses slowed markedly.

Within digital sales, all categories showed increased revenues year-on-year, with MMOs and free to play, casual and social games leading the pack over console and mobile.

By platform, mobile digital revenue remained largely static. Add-on DLC content and free-to-play extra item purchases drove increases in the PC and console spheres, with the former growing by 38 percent increase in the last twelve months, and consoles a whopping 103 percent last year and 130 percent last quarter.

EA’s two major online titles, the Battlefield franchise and Online Pass-enabled FIFA, both showed major growth, with FIFA 11 earning $10 million more than its immediate precursor, and Battlefield Bad Company 2 outstripping battlefield 1943 by $256 million.

The company was also bullish on mobile. After Christmas the company held the 14 top apps for iPhone and iPad, and said it intends to “maintain and grow leadership” in the market.

EA said it is the top publisher on iOS, Windows Phone 7, Blackberry, and held two of the top five Android apps during Christmas and New Year.

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22 Comments

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  1. Heinekeno

    THX EA for Christmas gift: Burnout Paradise Ultimate Box.
    And I also bought last year F1 2010 and MoH.
    Yeah they were buggy, but fun I had with MoH, payed off all the trouble.

    #1 4 years ago
  2. Johnny Cullen

    Need for Speed: Hot Pursuit is probably the best racing game I’ve ever played. Props to Criterion. Every one of those 5 million sales is deserved.

    Medal of Honor’s worth a shout too. Good single-player.

    #2 4 years ago
  3. LePlatypus

    Hmmm, didn’t like Medal of Honour much, hate how people think it’s better than Black Ops (I’m not a CoD fanboy).

    Also Pat, as much as it pains me to correct you twice in one day, you put then instead of than (I’m a grammar nazi, sue me!)

    #3 4 years ago
  4. kofoed

    I can’t believe that such an avg. FPS game can sell as much as 5 mil, Hot Pursuit on the other hand is nice, good job Criterion. :)

    #4 4 years ago
  5. Razor

    ““We are pleased to report another strong quarter,” said CEO John Riccitiello.”

    Even…even though you lost $322m?

    What’s John smoking?

    #5 4 years ago
  6. spiderLAW

    I prefered MOH over Black Ops. I thought the online MP was really good in MOH and shit in Black Ops. Single Player were both mediocre.

    #6 4 years ago
  7. CaptPierce

    The said they couldn’t make another MOH if they didn’t break 3 mil, and I’m happy they did. Couldn’t let this franchise die, and I’m one of the people that were dissapointed by the game. Well the single player was short but excellent and I didn’t like the multiplayer.

    Still, the next game ought to really knock it out of the park.

    #7 4 years ago
  8. The_Red

    Glad to see NFS Hot Pursuit getting past 5 mil. Sad to see MoH doing that too. I mean, MoH was horrible. It had some nice moments but overall it was ages behind the competition.

    #8 4 years ago
  9. Patrick Garratt

    Check those slides out. Digital’s the future, clearly.

    #9 4 years ago
  10. Naaame

    Appreciate the slides! very interesting :)

    #10 4 years ago
  11. Hunam

    Holy fuck, actual charts.

    VG247 2.0 is the best thing in the world ever.

    #11 4 years ago
  12. Patrick Garratt

    I’ve added in the audio quote of them confirming the TOR date.

    #12 4 years ago
  13. Johnny Cullen

    There’s audio of The Old Republic 2011 confirmation added in.

    #13 4 years ago
  14. DSB

    Damn, 5 million for Medal of Honor? I thought it would hover around 2.

    I was pleasantly surprised by the singleplayer, but it did have an awful lot of embaressing flaws.

    @6 True dat.

    #14 4 years ago
  15. DaMan

    can’t believe Hot Pursuit did that good, it appears this type of racing is more appealing to many than Blur/Split Second.

    #15 4 years ago
  16. Hunam

    What’s the difference between Blur / Split Second / Hot Pursuit?

    They all looked the same. I ended up with Blur though. Enjoy the hell out of it even if it’s a bit cold and clinical at times.

    #16 4 years ago
  17. DaMan

    the gameplay I meant, even if the changes are subtle.

    how do you explain those two flopping and HP succeeding?

    #17 4 years ago
  18. Ababi

    how can they still survive with a loss of $322 million?!

    #18 4 years ago
  19. RomaTotti10

    Excellent coverage. Thanks VG24/7.

    #19 4 years ago
  20. Brenna

    It’s really nice to see so much love for the new features in this hub. This wasn’t possible before the relaunch.

    #20 4 years ago
  21. Detale

    Great article, the new design is certainly paying off when it comes to stories like this.

    I bought both Split/Second and NFS:HP and enjoyed them both immensely (I’m still playing through HP, the AutoLog keeps sucking me back in for more). Enjoyed them so much that I haven’t bought GT5 yet, which I’m sure is some sort of sin for a PS3 owner.

    I’d gladly shell out for more of both, either in DLC or sequel form too, although I think that’s unlikely in Split/Second’s case which is a shame. I’m just hoping that Motorstorm Apocalypse has more to offer than adding some falling buildings into the mix.

    #21 4 years ago
  22. blackdreamhunk

    guild wars and kotor the biggest mmo’s of the year.

    #22 4 years ago