As an industry leader, EA wants to continue to grow in a “changing entertainment industry”. The focus is on a three-pillar model driven by the lucrative live services
The entertainment industry is changing, EA CEO Andrew Wilson spoke of “accelerating changes” in the earnings call for the new quarterly report. The 49-year-old has observed that “customer loyalty and spending” are “increasingly consolidated in the top franchises”.
Live services are the driving force behind this, as loyalty is intensified through new paid content. According to Wilson, players are “going deeper and spending more time with their friends on blockbuster experiences”.
On the one hand, this is now a common practice, but a fundamental distinction must be made when it comes to live services. These include additional levels or cosmetic items that can be purchased directly with real money, but also loot boxes, which have been criticized for some time. In FC 24, this link would probably only be strengthened in Football Ultimate Team through the new promos and packs
Focus on networking
On the other hand, “players and fans increasingly expect us to deliver the entertainment they want today and in the future: Bigger, bolder and more connected experiences where they can play, watch, create and connect like never before.” So the key points of the future, of the three-pillar model, are: blockbuster stories, entertaining and engaging online communities and leveraging that community.
Wilson highlighted the “multi-platform experience” EA SPORTS FC as an example, but did not want to provide further details on the three-pillar model until “Investor Day” this September in New York.
It seems clear that EA wants to close the circle more and more. As CFO Stuart Canfield confirmed, in the “last financial year we consciously prioritized our investments, streamlined our portfolio and aligned our teams and organizations with our greatest strategic opportunities”. However, this also included the dismissal of 670 employees at the end of February.
EA also wants to further expand its mobile business. But here, too, the company is aiming to make more targeted investments.
