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Finance

Origin generates $100m for EA, SWTOR subs hit 1.7m

Wed 01 Feb 2012 9:43pm GMT / 4:43pm EST / 1:43pm PST
FinancePublishing

Star Wars: The Old Republic sells 2m; Losses trimmed for third quarter

Electronic Arts has revealed that its digital games service Origin generated $100 million in the 2011 calendar year, from more than 9.3 million consumers.

Releasing its third quarter financial results, the company also said that MMO Star Wars: The Old Republic has more than 1.7 million active subscribers since launching in December, with 2 million units sold.

The company managed to trim its losses for the quarter down from $322 million in 2010 to $205 million. Net sales were $1.061 billion, compared to $1.053 billion the previous year.

Battlefield 3 and FIFA 12 have both sold more than 10 million units, while Madden NFL 12 has sold almost 5 million units life-to-date. The publisher claims it is number one in the Western markets with a 20 per cent share of Europe and 17 per cent share of North America.

"We are pleased to report a strong holiday quarter driven by Battlefield 3, FIFA 12 and a strong showing by our digital games and services," offered CEO John Riccitiello. "Star Wars: The Old Republic is developing a committed community of players with more than 1.7 million active subscribers and growing."

PopCap, which joined the company in August, has grown sales by 30 per cent on a twelve-month basis and the EA Nucleus registration system has more than 168 million consumers on its database.

"We recorded our highest operating cash flow in 31 quarters and grew segment share in both Europe and North America," said Eric Brown, CFO.

"Third quarter non-GAAP digital revenue grew 79 per cent year-over year, and we achieved our goal of generating over $1 billion in non-GAAP digital revenue on a trailing-twelve-month basis."

EA said that revenues for the fourth quarter are expected to be between $925 million and $975 million.

10 Comments

Samuel Verner Game Designer

131 243 1.9
uhm... didn't you got the "news" wrong? this report is about the last quarter of 2011. which means these "1,7" million subscriptions are non-existing. when the players opened their accounts and activated their free-month during the release in december, they got automatically an "active subscription". no matter if they planned to extend it to a real and payed subscription, or not. they haven't payed a subscriptionfee at this point.

so this number doesn't say anything, except "300.000 players have quit the game before their free month was over". there is absolutly no information about the ACTIVE subscriptions, where the players have to pay for. but statistics indicate that the numbers of active players in ToR are shrinking very fast.

Edited 3 times. Last edit by Samuel Verner on 1st February 2012 11:12pm

Posted:2 years ago

#1

Morville O'Driscoll Blogger & Critic

1,593 1,450 0.9
To be honest, given the shocking price-gouging that EA does with Origin, I'm not surprised it generated $100m from less than 10m customers. They're consistently more expensive than Amazon, Game, HMV, and Steam (where applicable). A good example of the latter is Kingdoms of Amalur: Origin is 5 more expensive than Steam, and it's an EA published game.

I eagerly await the time when EA is willing to price-match Steam, let-alone Amazon. And on digital distribution, for Heaven's sake! Talk about milking the consumer.

Posted:2 years ago

#2

Matt Martin Editor, GamesIndustry.biz

173 113 0.7
Samuel, we're not claiming to report paid subscriptions, that's why we're talking about active subscriptions.

Posted:2 years ago

#3

Klaus Preisinger Freelance Writing

1,138 1,181 1.0
The linguistic minutia might be correct, but it is as misleading to the reader as EA's original statement. Call me old-fashioned, but a news-article without information on how to potentially interpret such data is just advertisement. Untrustworthy spin created by PR departments, distributed for copying and pasting.

If everything is as awesome as the article tries to make it out with records here, records there and giant new sources of revenue everywhere, then where the hell did those losses of $200 million come from?

Posted:2 years ago

#4
Another qrt, another $200m loss for EA. When is the last time they posted a profit? And where does all this "lost" money come from? Surely it has to run out eventually?
(I wish I could lose almost $2m/day, and talk about it positively!).

Posted:2 years ago

#5

Craig Page Programmer

384 220 0.6
My favorite thing about Origin is the $5 pre-order fee, even when the checkout page claims to waive it, if you look at your credit card statement you see a charge for the game at full price, and another charge for the pre-order fee.

It's not an accident either, they did this to all my friends who pre-ordered SWTor too.

Posted:2 years ago

#6

Tin Katavic Studying MSc-Games Technology, University of Abertay Dundee

44 3 0.1
What boggles my mind is this: "Net sales were $1.061 billion" and yet "trim its losses ... to $205 million". Isnt that UKs debt? The amounts in question are scary.

Posted:2 years ago

#7

Morville O'Driscoll Blogger & Critic

1,593 1,450 0.9
@ Craig

I'm resisting the urge to say "Well, it's EA... What do you expect?"

But it appears I failed in that.

:)

Posted:2 years ago

#8

Thomas Campbell Studying Batchelor of Science B=Game Design, Full Sail University

1 0 0.0
Educate yourself before posting. Especially you "industry" people.

Posted:2 years ago

#9

Shawn Morrison Studying Game Design BS, Full Sail University

1 0 0.0
Thomas who are you directing that comment at? These seem to be informed and honest opionions. You may disagree with one or more but that is far from them being uninformed.

Posted:2 years ago

#10

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