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Tidbits From Electronic Arts' Q4 Financial Results

$80 million invested into next-gen development, upcoming layoffs, and more sequels.

As tired as some of this generation's franchises are getting, I'll happily take another Dead Space.
As tired as some of this generation's franchises are getting, I'll happily take another Dead Space.

With financial quarters coming to an end, it’s that time again.

Electronic Arts announced its fourth quarter fiscal 2012 results today, and followed that up with a call for investors and analysts.

The biggest headline? Despite making money, Star Wars: The Old Republic subscriptions are down 400,000 users, from 1.7 million to 1.3 million. EA claimed that was in line with expectations.

The market responded by EA’s stock dropping nearly 10%.

After perusing through EA’s financial results and listening to its call (there wasn't much "news") here’s what stood out to me:

  • EA spending $80 million on next generation development (it's calling it “Gen4”) over the next year.
  • 11 million users are currently using Origin, and the service generated $150 million in 10 months.
  • As rumors have suggested (also, logic), there’s another Need For Speed game coming later this year. It should be Criterion's turn.
  • Another Dead Space game was mentioned, but no details. I wonder if the snow planet rumors are true?
  • The reception to The Old Republic is, in EA’s eyes, in line with “original assumptions.”
  • The company will undergo a “restructuring” between now and September 30 that will result in layoffs. It’s unclear how many employees will be impacted, but since it’s going to cost EA about $40 million to “restructure,” that’s not a very good sign.
  • A bunch of stuff about EA pushing deeper and deeper into social/casual gaming.
  • No PopCap news, which means EA did not announce Peggle 2. Grr.
Patrick Klepek on Google+

117 Comments

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BlueWolverine

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Edited By BlueWolverine

Maybe with Dead Space 3 being in a snowy environment, it may actually be scary.

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huser

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Edited By huser

@Voladric said:

@AiurFlux said:

  • 11 million users are currently using Origin, and the service generated $150 million in 10 months.

You people make me sick. In fact I make me sick. Fucking EA.

Eh, I'd say those numbers go to show people aren't really using origin. I mean the average selling price would be less than $14 if every user had even bought a single game. Since the majority of that is probably BF3/TOR/ME3, it means around 3/4ths of that 11 million haven't bought anything. (150/60=2.5.......2.5/11=23% [assuming every game sold on origin was at $60 and no person bought more than one game. Obviously it gets fuzzier since some people would have bought cheap stuff, some $80 deluxe editions, some DLC, etc.]) Maybe even less if they are counting Old Republic 60 day time codes bought through origin.

It's gotten better. Last time these numbers went out it worked out to be like $5 per Origin user. But yeah, while 150 million can't be ignored, it's not exactly a rousing success.

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Grimluck343

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Edited By Grimluck343

@EXTomar said:

From my "back of the envelop" math, Star Wars The Old Republic has lost about 25% of its subscribers since March. I'm not saying they are DOOOOOOMED but they aren't flying high either.

And that also reminds me that this the game where the producers boldly stated they weren't going to settle for a distant second place.

Considering all of the hyperventilating fan boys who were convinced that TOR was the death of WoW it's definitely DOOOOOOOOM for them.

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huser

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Edited By huser

@outerabiz said:

@Incapability said:

Also, I'm surprised to see that 11 million people decided to use Origin - I wonder what that number would have looked like, if games were not exclusively sold through there. I also wonder what the sales would have looked like.

And by that, I mean that Steam currently has over 40 million active accounts - imagine if Battlefield 3 was made available to 40 million potential customers, rather than 11 million. But they have to peddle their delivery software somehow.

my thoughts exactly. I wonder what Bf3 and Mass Effects pc sales would have been if they had been on steam.

Doubt it would have been dramatic for ME. The dirty little secret is that for all the accolades it's never exactly sold that great anyways and that goes double for PC.

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dfsvegas

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Edited By dfsvegas

@cancerdancer said:

Patrick, fucking proof read your shit dude. You get PAID to do this kind of crap.

I was unaware he was paid to be an android who never made mistakes.

I knew he was hiding something under that mane.

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JBG4

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Edited By JBG4

Man, anything that gets me a new Dead Space game is fine with me. I absolutely love that series.

However, I am not happy with the fact that a number of people will lose their jobs that is always a terrible aspect of business.

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BiG_Weasel

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Edited By BiG_Weasel

"Star Wars: The Old Republic subscriptions are down 400,000 users, from 1.7 million to 1.3 million. EA claimed that was in line with expectations." Translation-"Yeah, we figured that once everyone learned there was no endgame, and SWTOR was essentially WoW-in-space, they would leave"

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markonfire

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Edited By markonfire

@cancerdancer: Speaking as a writer myself, it can be very difficult to proofread your own writing, particularly if you have a short turnaround time to go from notes to a full story. It might seem a bit counter-intuitive, but if you've re-written something over and over and over, you can start to miss simple, obvious things like that because you start reading what's in your head, not what's on the page. Without a second set of eyes (or in this case, a community of commenters), these things happen.

Party on

/rant

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DarthB

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Edited By DarthB

Unless you company is rolling in the dough, then layoffs are a fairly typical cost cutting measure. Sucks to see people lose their jobs, but can't fully blame EA alone for it. If they make less money, they have to spend less money.

Same shit is happening is the small business I work for. We have cut back employees hours and services for our customers to try and get a grip on costs. Not an easy thing to do in the services industry. Here's hoping they all get nice severance packages that get them through until they find a new place to work.

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Gordo789

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Edited By Gordo789

It's sad to see EA slipping back into its old fat jeans.

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Vlad_Tiberius

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Edited By Vlad_Tiberius

How about "the costs" for favorable reviews, exclusive previews, interviews and all that EA ass-kissing propaganda on various podcasts? Come on, because I'm curious to know how much is the EA bribe these days...

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BlatantNinja23

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Edited By BlatantNinja23

Dear EA... let Criterion make a new Burnout

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Bourbon_Warrior

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Edited By Bourbon_Warrior

If i was EA I would get Mirrors Edge 2 and Burnout Paradise 2 ready for the next console launch, because they will sell like hotcakes.

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chilipeppersman

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Edited By chilipeppersman

@Gordo789: I dont buy EA games anymore. They are pretty games, not much more than that. I had to FORCE myself to finish crysis 2. ugh never again EA, never again. Ill take any game made by Rockstar anyday over an EA game.

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foggel

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Edited By foggel
@Saltank said:

Mirror's Edge 2? :*((

We can only pray for a miracle.
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Gordo789

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Edited By Gordo789

@chilipeppersman said:

@Gordo789: I dont buy EA games anymore. They are pretty games, not much more than that. I had to FORCE myself to finish crysis 2. ugh never again EA, never again. Ill take any game made by Rockstar anyday over an EA game.

I have a love-hate relationship with them. I hate what they did with Dragon Age and Mass Effect, you know, with the terrible sequels and all, but at the same time I want a sequel to Mirror's Edge which will never happen. Damn it.

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matti00

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Edited By matti00

@leem101 said:

wasn't there talk about the next space being a prequel and a first person shooter, at least EA or someone was mumbling about it

BOOOOOOOOOO