EA posts $381 million loss, blames MoH for "soft" holiday outlook

By on October 31, 2012, 5:00 PM

EA has posted a loss of $381 million on revenue of $711 million for its fiscal second quarter ending in September, down from a $340 million loss on revenue of $715 million in the year-ago period. Despite those seemingly grim figures, the company's performance exceeded analysts' expectations.

That doesn't seem to be the case for the third quarter, however, as the publisher believes it will post a profit of $0.50 to $0.60 per share on revenue of $1.25 billion to $1.35 billion, which falls short of the profit of $0.71 per share on $1.38 billion in sales that analysts polled by Thomson Reuters expected.

In an investor's call, the company acknowledged that its third quarter "appears soft," and this is largely blamed on the weak critical reception of its latest modern military shooter, Medal of Honor: Warfighter, which currently has a Metacritic score of 51 to 56 depending on the platform.

EA also cited the recent cancellation of NBA Live 13, which was supposed to launch on Xbox Live Arcade as a downloadable product for $20 but was reportedly shelved for not being up to par with the quality of the company's other sports franchises.

Said sports titles were the primary reason EA topped second-quarter expectations, with FIFA 13 and Madden NFL 13 being the western world's two top-selling games in September. The former logged 7.4 million sales during its first four weeks of availability, marking EA's all-time biggest sports launch, while the latter has seen a 30% year-over-year increase in total online game sessions and has sold 9% more copies than its predecessor in the same period (specific numbers weren't provided). Other highlights and metrics include:

  • EA was the #1 publisher in the Western World in calendar year 2012 to date, with five of the top seven titles.
  • Need for Speed: Most Wanted launches this week with great reviews. IGN and Game Informer awarded Need for Speed a 9 out of 10.
  • FIFA digital net revenue generated over $115 million in the first half of fiscal 13, including FIFA Online 2 and FIFA World Class Soccer that together contributed over $50 million.
  • Battlefield 3 Premium service has sold over 2 million subscriptions to date, up from 1.3 million in late July.
  • The Simpsons: Tapped Out has been a top grossing iOS game for the past four weeks, was the #1 application in 54 countries, including the US, UK and Germany, and recently logged a record-high of 2.8 million daily active users.
  • EA's games and services for mobile have generated a 60% year-over-year increase in digital net revenue.
  • Catalog continues to outperform with Battlefield 3 and FIFA 12 together selling through nearly 4 million units in the first half of the fiscal year.
  • Trailing twelve-month non-GAAP digital net revenue was a record $1.44 billion.
  • Trailing twelve-month operating cash flow was $490 million, a $183 million improvement from the prior quarter.
  • EA repurchased $108 million of shares in the second fiscal quarter pursuant to a $500 million Share Repurchase Program announced on July 31, 2012.
  • Origin has registered over 30 million users, including 13 million mobile users, and has signed agreements with 71 independent developers.



User Comments: 19

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Guest said:

MoH?! REALLY EA?! How about Sucking @$$ as a video game company?? That'd do it

lipe123 said:

Lol why is EA not bankrupt and closed down yet? They haven't released anything good in years!

Their employees are unhappy they buy out all the competition and shut them down, this company has been heading down hill for a looong time.

Vrmithrax Vrmithrax, TechSpot Paladin, said:

So, just keep rehashing titles with a bit of a refresh, and pumping out the same stagnant trash... And blame a single title (which is itself basically a rehash of a rehash) on your lack of profit? I'd love to know what kind of grade A narcotics they pump into the air in EA's corporate offices...

Darth Shiv Darth Shiv said:

Lol why is EA not bankrupt and closed down yet? They haven't released anything good in years!

Their employees are unhappy they buy out all the competition and shut them down, this company has been heading down hill for a looong time.

FIFA is good but the pricing model for each yearly release is a bit wrong. I don't pay $80 for a patch each year!

BF3 is also fantastic. If it wasn't delivered via Origin, I'd be very happy with it. Origin needs a LOT of work to catch up to Steam.

NTAPRO NTAPRO said:

Lol why is EA not bankrupt and closed down yet? They haven't released anything good in years!

Their employees are unhappy they buy out all the competition and shut them down, this company has been heading down hill for a looong time.

What about those highlights :o

Guest said:

Hope EA goes bankrupt soon, they had the nerve to try and buy Valve for $1 billion dollars.

jonelsorel said:

GOOD on ya, EA ! Thanks for ORIGIN, btw!

Guest said:

Lol, no wonder they have such a high loss: overpricing their games by 20 dollars on Origin and not selling their games on Steam... that won't work :D

Guest said:

EA has sucked for many years. I think the main reason is it's not run by gamers but by corporate bean counters who don't understand the business they are in. Hey, let's make a cheap game and overcharge people for it; we'll make millions, mmmm ha ha. Later... Hey people are not buying our crap anymore, what can we blame...???

Guest said:

They destroyed the MoH name with this revamped, console ported garbage and then lop a $60 price tag on this bag of crap..... They will hopefully figure out the errors in their ways sooner than later but it's doubtful!

Sniped_Ash said:

A $381 million loss mostly because of lost sales for a milquetoast modern military shooter and a $20 downloadable NBA game that was canceled right at the end of development? Haha, sure, EA.

PC nerd PC nerd said:

Good. I hope they die.

Pumping out all these terrible games at an industrial pace. It's awful.

PC nerd PC nerd said:

They deserve it for unleashing Origin upon us loyal PC gamers.

Origin was the biggest kick in the balls PC gamers have suffered for a long time.

treetops treetops said:

Im not a fan of EA but my friends still love every modern warfare\cod release, I was watching a commercial with them on monday during the niners cards game and the new COD commercial came on. They were like woah that looks awesome. I was like they come out with a new one like every 6 months. They were like it still looks awesome, I just shrugged.

Guest said:

Is EA really this stupid? The CEO must be a *****. Gaming is such an easy concept. I'm a gamer and if I knew how to make and code games, heck, I would buy my own games. All EA has to do is do some heavy market research and they will find their gold mine. If you don't listen to the customer, then you will be like a dying restaurant, serving the kind of food that no one wants to eat. It's that simple. Why does a game like MOH suck? Because EA has no idea what the "fun factor" is. Such a big company and no one has a better idea than to copy COD? Even COD is getting old. If EA would hire me for big dollars, I have some ideas that would rock the gaming world.

IAMTHESTIG said:

No one with half a brain wants to buy EA crapware because EA doesn't stand behind their product. They release buggy software and then abandon it, refusing to fix critical problems. Not to mention trying to push Origin, which is simply a horrible idea, poorly implemented. I myself have stopped buying EA products because of these issues.

Speak with your wallets people...

ViperGtx ViperGtx said:

Wouldn't of been such a loss if they had gotten off their asses and fixed it. Week and a half after launch, still can't save single player progression on PC. GG. Proud to say I have persuaded 6 of my friends not to buy MoH. Took one for the team. = \

McNasty said:

They lost 381 due to their failing business model which is to spend as little as possible on game development by focusing on console development, then porting the product to PC. The best example of this is what happen to the MoH franchise, and the subscription like release cycles of CoD & MW. This was combined with a multi-million dollar campaign in propaganda trying to convince everyone that PC gaming is dead. This would include "donations" to sell outs like John Carmack and the popular gaming magazines & websites, yes IGN I'm looking at you (Need for Speed Most Wanted 9.5 my @$$). Add to this the fact that Origin is product from a company that in one sentence says "PC gaming is a thing of the past" but in the very next sentence say "buy FIFA 13 on Origin". We as gamers can only hope the trend continues and maybe EA shuts down returning the ART of creating games back to the real artist the game developer and away from the MBA Ivy school graduate that is only interested in "maximizing profitability while reducing overall risk surface of loss" so that he can buy an even bigger yacht. Where is Trip Hawkings when you need him.

Guest said:

Sooner or later these near trust/monopoly size companies will com crashing down or integrate with the up to date world!

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