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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+

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CJduke

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Edited By CJduke

Hell yeah more dead space!

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Edited By BeachThunder

YESMOREDEADSPACEIFUCKINGLOVEDEADSPACE:D

@believer258 said:

Unfortunately, this would (probably) mean cutting out the anti-gravity sections, but I could live without them.

There could be water; which probably wouldn't be too different to the zero gravity in DS2.

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Hailinel

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Edited By Hailinel

$40 million is a lot to spend on layoffs.

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ThePhantomStranger

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I really hope $80 doesn't become a GiantBomb meme because I'm already tired of it after a single page of comments. >_<

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bunnyfiend

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Edited By bunnyfiend

I use Origin for ME3, that's about it, doesn't even start when my PC starts. But the fact is, I enjoy ME3 multiplayer and was not upset by the ending. That said, I prefer Steam as a service, but I'm predisposed to be biased towards valve. In all honestly, I launch Origin from Steam... because Steam is my hub for everything. (Even doing real work)

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AiurFlux

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Edited By AiurFlux
  • 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.

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Jazz_Lafayette

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Edited By Jazz_Lafayette

Great, EA slaps some branding on their custom-brand DRM and claim that it's what's driving their profits. Sucks about those job losses, too.

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AhmadMetallic

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Edited By AhmadMetallic
@EuanDewar said:
No PopCap news, which means EA did not announce Peggle 2. Grr.

FUUUUUUUCKKKK

WHAT THE FUCK MAN, I NEED MY FUCKING FIX

Haha, aw.
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Lathorus

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Edited By Lathorus

cool story

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tcsajax

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Edited By tcsajax

Shouldn't it be Gen7? Aren't we moving into the 7th Generation of videogames?

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Sooty

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Edited By Sooty

TOR is so going free to play by the end of this year.

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Red12b

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Edited By Red12b

@Mr_Skeleton said:

@Rolyatkcinmai said:

@Mr_Skeleton said:

If TOR cost $200,000,000

We know at least 1.7 million bought the game for $60 = 1.7(m)*60= 102,000,000

Another 1.3 million paid $15 so 1.3(m)*15=195,000,000

Seems like within a month it will be very profitable or is there something wrong with my math.

Do you not see what's wrong with your math?

1.7x60=102, but 1.3x15=195.

Explain.

I might have been drinking before I wrote that.

Edit: those are in million, but the second calculation is wrong.

NO WAY!

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Mr_Skeleton

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Edited By Mr_Skeleton

@Rolyatkcinmai said:

@Mr_Skeleton said:

If TOR cost $200,000,000

We know at least 1.7 million bought the game for $60 = 1.7(m)*60= 102,000,000

Another 1.3 million paid $15 so 1.3(m)*15=195,000,000

Seems like within a month it will be very profitable or is there something wrong with my math.

Do you not see what's wrong with your math?

1.7x60=102, but 1.3x15=195.

Explain.

I might have been drinking before I wrote that.

Edit: those are in million, but the second calculation is wrong.

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Red12b

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Edited By Red12b

@patrickklepek said:

@cancerdancer said:

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

No Caption Provided

best reply I have ever seen bar Biffmcblumpkin

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Blackout62

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Edited By Blackout62

I've two questions: What is the status of Mirror's Edge 2, and will Jeff Green be keeping his job?

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Cogzwell

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Edited By Cogzwell

I gotta admit, even as someone who wasn't all that impressed with the first 2 dead space games, I find that world cool enough to ask for more.

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RoyCampbell

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Edited By RoyCampbell

EA employees now come into work displaying nervous tics and sweat-drenched clothing, starting tomorrow.

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Rolyatkcinmai

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Edited By Rolyatkcinmai

@Mr_Skeleton said:

If TOR cost $200,000,000

We know at least 1.7 million bought the game for $60 = 1.7(m)*60= 102,000,000

Another 1.3 million paid $15 so 1.3(m)*15=195,000,000

Seems like within a month it will be very profitable or is there something wrong with my math.

Do you not see what's wrong with your math?

1.7x60=102, but 1.3x15=195.

Explain.

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SomeJerk

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Edited By SomeJerk

Oh, the fiscal year that just closed, that explains why EA were bringing out hookers and blow to anybody getting online for a free weekend or short free-subscription in SWTOR, and then counting trials towards that, and

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NTM

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Edited By NTM

Yay for Dead Space!

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Qwinn

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Edited By Qwinn

What's with all the Patrick hate? The guy brings a new perspective to the table which is awesome but god forbid he make a typo. I love the GB community but you all are making it tough.

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scraz

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Edited By scraz

@BestUsernameEver said:

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

Why, why are people using Origin, what reason is there other than Battlefield 3 for PC?

That number is the bigest fucking lie in the industry.Every EA game for the past 4-5 years has forced you to sign up for an EA account to validate DLC content and get your email address so they can spam you.Also 150 million in revenue for 10 months may sound like alot but that includes SWG BF3 ME3 and all the other crap.I hope dead space 3 is the last in the series so i can right EA off for dead.

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onan

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Edited By onan

@BestUsernameEver said:

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

Why, why are people using Origin, what reason is there other than Battlefield 3 for PC?

Origin really adds nothing to the equation. That 11 million can be easily summed up by people using it to buy Sims titles, Mass Effect games, Dragon Age, and Battlefield, since that's now the only place you can buy (and must redeem) new titles.

It's like saying "11 million users are currently supporting SecuROM." It's a meaningless quote.

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Justin258

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Edited By Justin258

@Yummylee said:

No Caption Provided
No Caption Provided

@patrickklepek said:

@cancerdancer said:

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

No Caption Provided

Also, Dead Space 3 should take the perspective of a different character, possibly Ellie instead of Isaac. This time, she could have a prosthetic eye (in place of the one she lost in DS2) that includes some gameplay functions, and not just gimmicky seeing through walls either. If it takes place on a snowy planet, I'll bet that it's near a base or industrial site of some sort. Unfortunately, this would (probably) mean cutting out the anti-gravity sections, but I could live without them. Unless the game has you visit a heap of space junk for some reason at some point.

OK, I'll stop now and let the developers do their jobs.

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Jimbo

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Edited By Jimbo
@Mr_Skeleton said:

If TOR cost $200,000,000

We know at least 1.7 million bought the game for $60 = 1.7(m)*60= 102,000,000

Another 1.3 million paid $15 so 1.3(m)*15=195,000,000

Seems like within a month it will be very profitable or is there something wrong with my math.

Yeah, you don't make $60 profit on a $60 game or $15 profit on a $15 subscription.
 
That and 15 x 1.3m = 19.5m, not 195m.
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abendlaender

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Edited By abendlaender

@BestUsernameEver said:

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

Why, why are people using Origin, what reason is there other than Battlefield 3 for PC?

Probably Mass Effect and SWTOR. In fact, EA even stated:

Q4 full-game downloads were up 76 percent* year-over-year, contributing $60 million* in

the quarter, driven in part by Mass Effect 3 and STAR WARS®: The Old Republic™

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Jimbo

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Edited By Jimbo
@CaLe said:

Haha I make afunny one. How many Patrick to screw the lightbulb? Only one because hair is so big!! aha. I make laugh.

ivegot1 ivegot1! How much does it cost Patrick to hire the Staples Center for a night?
LOL <>
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Jimbo

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Edited By Jimbo
@BestUsernameEver said:
11 million users are currently using Origin, and the service generated $150 million in 10 months.

Why, why are people using Origin, what reason is there other than Battlefield 3 for PC?

I have no problem with Origin as a service. and 'd rather see all of the purchase price go to the publisher than have a third of it go to an unnecessary (as far as I'm concerned) middle-man.  It's only Origin's incomprehensible inability to compete on price which prevents me buying from them more often.
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BillyBobBaggyBottom

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Origin redirects you based on the country you are in, needless to say in my country Origin has shitty support and things look wrong and buggy most the time. I honestly can't stand the service for those reasons. I can imagine the amount of people who did sign up but never used the service, so that 11 million could very well be trivial.

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jillsandwich

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Edited By jillsandwich

BRING ON DEAD SPACE 3. I WANT IT INSIDE ME NOW.

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DaveC524

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Edited By DaveC524

AS OF APRIL 24TH, BIOWARE SAID THAT SWTOR NEVER LOST ANY SUBS, JUST THAT LESS PEOPLE ARE LOGGING IN

http://www.gamebreaker.tv/mmorpg/star-wars-the-old-republic-mmorpg/no-change/

AS OF APRIL 24TH, BIOWARE SAID THAT SWTOR NEVER LOST ANY SUBS, JUST THAT LESS PEOPLE ARE LOGGING IN

http://www.gamebreaker.tv/mmorpg/star-wars-the-old-republic-mmorpg/no-change/

AS OF APRIL 24TH, BIOWARE SAID THAT SWTOR NEVER LOST ANY SUBS, JUST THAT LESS PEOPLE ARE LOGGING IN

http://www.gamebreaker.tv/mmorpg/star-wars-the-old-republic-mmorpg/no-change/

Bioware/EA confirmed colossal liars who were caught lying.

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BestUsernameEver

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

Why, why are people using Origin, what reason is there other than Battlefield 3 for PC?

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Jimbo

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Edited By Jimbo
@connerthekewlkid said:

EA said it only need 500,000 subs for the old republic to be profitable so id say thats okay and most of those subs were cancelled after the free month ran out

Except just saying '500k subs' without saying how long you need them for to become profitable is completely meaningless, which is probably why they phrased it like that.  It would take a whole lot of months at 500k subs to make back the money they spent on this.
 
I think it's highly unlikely that the numbers are going to stabilise at 500k.  Successful MMOs don't start out by hemorrhaging users; they build momentum. It seems far more likely to me that they are in a nosedive which they're never going to recover from (at least not as a subscription MMO).
 
edit: I actually read that as them being down to 400k, so my bad, not quite as nosedivey as I thought. I still don't think it looks good though...
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Edited By eljay

TOR meeting "original assumptions" is not the bang they were looking for considering the beast accounts for 1/6 of their annual R&D spend. At least they made money for the first time in four years!

The Nexon takeover offer rumors last week were kind of ominous, I would not be surprised to see a suitor come out publicly if the stock price stays low.

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Saltank

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Edited By Saltank

Mirror's Edge 2? :*((

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I wish there were dinosaurs, but that they were my friends.

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Sporkbane

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Edited By Sporkbane

I'm still surprised Origin has been of any use to anyone. Haven't touched mine since ME3, how could people still be buying shit on it?

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EuanDewar

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Edited By EuanDewar
No PopCap news, which means EA did not announce Peggle 2. Grr.

FUUUUUUUCKKKK

WHAT THE FUCK MAN, I NEED MY FUCKING FIX

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Rhombus_Of_Terror

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@DorianOtten said:

people cool it with the $80 thing

I think people are trying to find a new meme after Alex basically trolled GB earlier with that Skyrim joke for the AC3 trailer.

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DorianOtten

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Edited By DorianOtten

people cool it with the $80 thing

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Yummylee

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Edited By Yummylee

@patrickklepek said:

@cancerdancer said:

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

No Caption Provided
No Caption Provided
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Edited By jking47

@patrickklepek said:

@cancerdancer said:

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

No Caption Provided

Very funny, but really, you need to proof read your articles. I find at least 1 typo in every one you have been putting up in the past few weeks...

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ColinRyan

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Edited By ColinRyan

I wonder how much money Ultimate Team in Fifa 12 made (more than $100 million?). Hella lotta money from one game mode alone and more than they're spending on R&D :/

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Rirse

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Edited By Rirse

Of course those 11 million users include anyone who made a EA Account in the last decade.

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Phatmac

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Edited By Phatmac

8O DOLLARS!!?!!!?!?! WOAH

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OneManX

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Edited By OneManX

@patrickklepek said:

@cancerdancer said:

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

No Caption Provided

He's got a point.

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Brendan

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Edited By Brendan

The $80 typo was the backwards flying dragon glitch of typos, because I laughed my ass off at it. Thanks Patrick!

Also, is it just me or have there been layoffs almost every quarter for EA for, like, years now?

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CaLe

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Edited By CaLe

Haha I make afunny one. How many Patrick to screw the lightbulb? Only one because hair is so big!! aha. I make laugh.

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sockemjetpack

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Edited By sockemjetpack

The fact it ends up being "a bunch of stuff" about EA pushing deeper into social gaming has me confused as to whether it's something to worry about. Especially with all these rumours that the next gen will be the end of consoles as we know them and the beginning of something else... something sinister...

Also give me some Dead Space.

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White_Silhouette

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Edited By White_Silhouette

I really hope they do a good job with Dead Space 3. I really enjoyed the first two but can easily see them turning them out as fast as possible to make as much profit as possible.