Electronic Arts Inc. is one of the most successful interactive entertainment software companies in the world. This software company creates games, online services, and content for all kinds of devices, including PCs, mobile phones, consoles, and tablets. It is located in Redwood City, California, but has over 300 million registered competitors globally.
EA is organized into three divisions: EA Studios, EA Mobile and Maxis. The first division, EA Studios, creates and develops games and related content and services. The EA Mobile division develops and publishes interactive games for mobile phones and tablets. The third division’s mission is creating games and related content and services that engage player creativity.
William M. Hawkins III established the company in 1982. Ever since then, the EA has been recognized for many high-quality blockbuster brands, including EA SPORTS FIFA, The Sims, Battlefields, Madden NFL, Plants vs. Zombies, and Dragon Age.
What is EA Net Worth 2020?
This video game publisher has revealed that they’ve reached better-than-expected quarterly revenue, mainly due to the continued success of its battle Royale game “Apex Legends.” This is the fastest-growing game in the history of this software company. The company reported that about 10 million people play “Apex Legends” weekly.
Hence, the EA net worth for this current fiscal year is estimated to be $22.9 billion. In fact, its net worth has jumped 12% from last year. The game publisher’s revenue has significantly increased in 2020.
Besides “Apex Legends”, the company has other important game franchises that contribute to the revenue. For example, “Battlefield” and “FIFA” are still held accountable for much of the revenue.
However, the rise of mobile-based, free-to-play games started becoming a huge challenge for Electronic Arts Inc. Nevertheless, the company’s shares rose 5% to $92.57.
How Does EA Make Its Money?
The surprisingly high company net worth has made many people wonder where the company’s revenue comes from. The company is mostly digital, meaning it works with digital content distribution. Hence, digital goods are quite cheaper as they don’t come with the usual costs of producing and shipping physical goods. What’s more, thanks to the digital distribution, the company can sell its content more easily.
In fact, most of the money EA makes, or about 74% of the total, come from digital sales. The remaining 26% still come from physical goods and other net revenue. Hence, consoles made up 70% of the sales, PCs made up 14.6%, and mobile accounted for 15.2% of the company’s revenue. This makes it obvious that consoles are the main source of revenue for EA.
When it comes to the revenues gained from digital sales, there are three subcategories to consider. These include full game downloads, live services, and mobile. In fact, 19.8% of the total revenue came from full game downloads, which grossed $743 million. What also makes EA so successful is its smart business moves. The software company obtained DIC in Sweden and took over the Battlefield franchise. Additionally, in collaboration with Disney, EA started distributing all Star Wars games.
This year the EA’s services business has grown 70% more than in 2015. On the other hand, the products business declined by about 40% during this period. These days, EA keeps accumulating its revenue and it’s completely focused on creating and providing ultimate experiences to its players. It aims at delivering a compelling game and content portfolio, which is building a name for itself.