The first quarterly report of the post-FIFA era at Electronic Arts (EA) allows conclusions to be drawn about the commercial performance of FC 24. Once again, it is also clear how the developer primarily earns money
2.366 billion US dollars in net bookings and 1.945 billion in net revenue: EA’s figures from the third quarter of the 2024 financial year sound huge once again. They come from the corresponding new report that EA is obliged to publish as a listed company. But what do these huge sums mean in the financial context of the video game giant?
First of all, they represent general growth compared to the third quarter of the previous year: Around 3.4 percent is the increase in net revenue, and around one percent in net bookings. However, this does not mean that all business areas are on the upswing. EA once again set a new record with its so-called “live services”. These include microtransactions in the Ultimate Team modes of FC 24 or Madden NFL 24 – the purchase of packs.
Ultimate Team as a business model an “evergreen “
Net bookings of 1.712 billion US dollars originate from FUT, EA Play & Co. which corresponds to 73 percent of the total net bookings recorded by EA between October 1 and December 31, 2023. “This underlines the evergreen nature of this business model and thus the ability to increase the growth of our franchises in the future,” interprets EA’s chief financial officer Stuart Canfield.
Four million missing for FIFA 23 launch
On the other side of the coin are the revenues from sales of the full game versions. These fell from 622 million US dollars to 618 million US dollars in the last quarter compared to the same period in the previous year. Based on a hypothetical average price of 60 US dollars per EA title, this would result in just under 67,000 fewer games sold. A rather small drop, which CFO Canfield nevertheless recognizes as “certain weaknesses” in the relevant segment.
It is not clear from the quarterly report whether this is directly related to FC 24. Just a few weeks after the release, however, media reports about falling sales figures compared to FIFA 23 had already surfaced. EA itself also confirmed that fewer games were being played in FC 24 during the launch phase. CEO Andrew Wilson said that EA SPORTS FC had “exceeded expectations”. However, EA had deliberately set these comparatively low.
Madden NFL 24 positively highlighted
For FUT and FC Mobile, Canfield also points out that the quarterly comparison must also be viewed in light of the fact that a World Cup took place at the end of 2022. The CFO himself considers the “double-digit growth in net bookings” there to be all the more “impressive”.
EA also highlighted the financial success of Madden NFL 24, the “best-selling sports game of the 2023 calendar year in North America” according to EA. As with FC 24, the focus of the American football simulation is on the Ultimate Team mode: Wilson speaks of “improved monetization” and makes no secret of the fact that microtransactions with real money stakes will continue to be a high priority in the future.
This means that EA generates 73 percent of its estimated revenue from in-game purchases and subscriptions. At the same time, game sales are falling. This means that fewer players are spending more money on FUT, MUT, HUT or EA Play. Despite all the bugs and problems the company is struggling with: Players seem to care less than assumed, they are investing more. Especially in light of the many negative impressions of FC 24, the quarterly report can therefore be celebrated as a complete success for EA.
