In future, Electronic Arts wants to expand its mobile business. The reasons are obvious. CEO Andrew Wilson explains why this could be lucrative – but also involves risks
“Everyone has a smartphone in their pocket and can access games quite easily through free-to-play offers.” More than a year ago, Kevin Rosenblatt, General Manager Mobile at ESL, explained in an interview with eSport why the mobile market could be the future.
Electronic Arts (EA) also seems to be recognizing the potential more and more clearly. At least that is what emerges from the latest earnings call for the new quarterly report. “We have spent the last few years focusing on our mobile business and increasing profitability in this area of the business,” explained Andrew Wilson, CEO of EA.
Between opportunities and risks
The 49-year-old expects “low to mid single-digit growth in the overall mobile market over the next 12 months”. However, despite all the apparent profitability, this segment remains “a risky business as it requires significant user acquisition costs” in order to successfully establish a new mobile game on the market. Development cycles are also significantly longer. According to Wilson, these can sometimes take up to two or three years.
Nevertheless, EA sees the opportunity rather than the obstacles and wants to invest in a very limited number of mobile titles that the company believes could be successful. Whether EA SPORTS FC is one of these was not explicitly confirmed, but it can be assumed that it is. In contrast to Apex Legends, where a monetary decline was recorded, revenue from live services in Football Ultimate Team from FC 24 and FC Mobile could increase.
Smartphone and tablet as a mecca for live services
In general, live services, including loot boxes, are important for EA. If you look at the figures, they account for almost three quarters of total revenue. The fact that the mobile market is being targeted more strongly seems logical in this respect. According to the German industry association game e.V., consumer behavior is highest for smartphones/tablets as a gaming platform. In 2023, around EUR 2.9 million was spent in this segment in Germany (more than on PCs or consoles) – 98% of which was for in-app purchases alone. Most games are offered as free-to-play
To close the circle, another advantage of mobile gaming according to Rosenblatt: “Accessibility. While playing on a console or PC is only possible from home, I can play anywhere on my smartphone.” And also make in-app purchases