EA Hasn't Been Affected By Store Closures | Game Rant
While the coronavirus has turned much of everyday life upside down, it appears that it hasn't been all bad news for some companies. During an earnings call today, EA reported strong numbers for Q4 of Fiscal 2020. And while the coronavirus pandemic has led to businesses temporarily shutting down, or in some cases shuttering entirely, it appears things are going well for EA.
Commenting on current sales, an EA spokesperson stated, "The closure of physical retail has not yet affected the sales of full games, with sales actually above where we would've expected them to be at this time of year." This was highlighted with multiple games, from Star Wars Jedi: Fallen Order's impressive milestone of 10 million unique players to Apex Legends being the most-downloaded free-to-play PS4 game of 2019. Stay at home orders have caused a surge in users on various gaming platforms, proving how popular video game escapism has become.
A large portion of EA's revenue comes from digital channels, equating to nearly 80% of revenue according to the earnings report. It stands to reason, then, that EA would remain largely unaffected. Those that want to play a game in EA's catalog are simply "downloading a digital copy or ordering a physical copy online," according to EA, leaving the company's business intact.
It also helps that EA focuses on the live service model. Many of the games in its roster have been out for months, but they feature ways to continually earn revenue through different streams, like Apex Legends' cosmetic items, or FIFA's Ultimate Team game mode, which allows players to purchase various real-world Soccer players for their teams.
EA plans to release 14 games this Fiscal Year, which runs until March 2021. EA didn't announce which titles those would be, but it's fair to say at least a portion of the count will be dedicated to its annualized sports games, as well as some mobile games.
Many are quick to dogpile on EA, with the company earning various "worst business" awards throughout the years, but a healthy EA is indicative of a healthy games industry, which is especially important during the coronavirus pandemic. It means that games are becoming an even larger part of people's daily lives, which in turn means bigger and better games industry-wide.
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