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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+