Where does EA make most of its money?
EA makes most of its money from its live service segment, which includes extra content, subscription offerings, and other revenue generated outside of the sale of the company’s base games, with this segment generating close to $5.5 billion in revenues in the fiscal year 2023. The company’s FIFA and Madden franchises, as well as in-game purchases and microtransactions, are significant contributors to its revenue, with FIFA being EA’s largest franchise, generating more than $4 billion in annual revenue.
Frequently Asked Questions
What game does EA make the most money from?
EA makes the most money from its FIFA franchise, which generated almost $104 million in revenues from January to August 2023, accounting for the biggest share of EA’s app revenues in the measured period.
How does EA still make money?
EA still makes money through its console games, which consistently generate approximately two-thirds of its revenues, as well as through in-game purchases and microtransactions.
How much money does EA make from Madden?
EA makes over $1 billion from its Madden franchise, with the game being a significant contributor to the company’s revenue.
How much does EA pay the NFL?
EA pays the NFL $1 billion as part of its exclusive licensing agreement, with an additional $500 million going to the players and $500 million in marketing commitments.
Does EA own the rights to Madden?
EA Sports has held exclusive licensing rights with the NFL since 2005, making Madden NFL the only American football video game available with all the NFL teams and their players.
Does EA have debt?
As of June 2023, Electronic Arts had $1.88 billion of debt, which is about the same as the year before.
How much does EA make from in-game purchases?
In the fiscal year 2023, EA generated approximately $4.3 billion in revenues from extra content sales, with almost half of it being associated with the company’s sports games Ultimate Team mode.
How is EA so successful?
EA’s success is due to its strategy of platform-agnostic development and the creation of strong multi-year franchises.
Who is richer EA or Epic Games?
Epic Games is now worth nearly half as much as Electronic Arts, with a rapidly increasing valuation.
What is EA’s biggest franchise?
FIFA is EA’s largest franchise, generating more than $4 billion in annual revenue between the traditional version of the game and its continuing live service known as “FIFA Ultimate Team“.
What sells more FIFA or Madden?
FIFA sells more copies annually than Madden, with FIFA being popular worldwide and Madden being primarily popular in the continental United States.
Who owns the majority of EA?
The largest shareholders of EA include BlackRock Inc., Public Investment Fund, Vanguard Group Inc, and State Street Corp.
How profitable is EA Sports?
In fiscal year 2023, EA posted GAAP net revenue of approximately $7.4 billion, with EA Sports being a significant contributor to the company’s revenue.
Why does EA like microtransactions?
EA likes microtransactions because they have become a huge source of revenue for the company, allowing players to purchase virtual goods or currency with real money.
How much does EA take from transfer?
EA charges a 5% tax on FUT transactions, which come from selling on the FUT transfer market.
Is EA known for microtransactions?
Yes, EA is known for its use of microtransactions, which have been a subject of controversy in the gaming industry.
Will EA stock recover?
According to Wall Street analysts, EA’s stock is expected to recover, with an average price target of $146.50 and a high forecast of $162.00.