EA Is Making Two-Thirds Of Its Revenue Through Live Services
So we’re probably going to get a whole lot more of them.
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The live service model is a deal for Electronic Arts, making up almost two-thirds of the company’s $1.85 billion revenue throughout the second quarter of 2022 — about $1.1 billion. Only a third came from the initial sales of full games, both new and old titles.
EA posted its July–September financial results this week, highlighting that Q2 2022 was “the strongest second quarter” in the publisher’s almost 40-year history. The company said it will continue to grow its live service offerings, particularly on mobile. This is unsurprising, as non-service games brought in around $700 million, with 62 percent of units sold digitally.
Such a gap is in no small part due to the strong performance of its battle royale title, Apex Legends. According to the company, Season 9 and 10 each set new records for the highest active players since Season 1. Players regularly buy new cosmetic gear for their heroes, including the recently unveiled Ash bundle for Amazon Prime members. All in all, the total Apex Legends revenue has ballooned to more than $1.6 billion since February 2019, making the game one of the most successful battle royale games on the market.
However, there are many more live service offerings from EA. The company says it runs live services across more than 25 games currently, and expects to generate 70 percent of its incoming transactions this year from this model. These include FIFA 22, Madden 22, Battlefield 5, The Sims 4, Star Wars: The Old Republic, and more. Full games, such as Battlefield 2042, NHL 22, and Mass Effect Legendary Edition (which you can still grab with a 37 percent discount on Steam) are expected to generate the remaining 30 percent of projected revenue. Sounds like you should expect even more games from EA that are always online, have frequent content updates and in-game purchases. If only that always worked out well.
EA also mentioned Battlefield 2042 as part of the expansion of its blockbuster franchises. As reported previously, 7.7 million players joined the game’s open beta. The company called it “the largest early access event ever” with 3.1 million players during this period.
Finally, following Ubisoft’s lead, EA expressed an interest in expanding into the NFT market, calling the disturbing technology “the future of our industry.”
Link Source : https://www.thegamer.com/ea-live-service-revenue/