A Flat First Quarter for EA
EA isn't doing as well as it has hoped for. It has reported that it hasn't done well enough for the starting Q1 fiscal of 2014 compared to the previous year of Q1 2013. Last year, it had earned a total of $949 million in revenue (only the gross sum for the moment) by the end of the fiscal 2013 year. Now to take into account the tax and operating costs that need to be paid, what did EA have left at the end of last year as net profit? $201 million, which isn't a bad profit to make, but keep in mind businesses always want to expand and make more each year, plus costs rising doesn't help. But compared to $201 million last year they've only gained $222 million this year, which is only a 10% increase from the previous year, but this is possibly grim news for shareholders. EA is expecting to make around $625 million in the second quarter, but are still expecting losses coming to the end of the summer.
Meanwhile over the fence for DICE there needs to be some form of good news, right? Well there seems to be with earning EA $108 million in revenue through Battlefield Premium, with a total of over 4 million subscribers, meaning a 2.9 million increase since January. On top of this, Origin itself is seeing an increase of users, with around 20 million new subscribers since October last year, totalling to a whopping 50 million current subscribers.
What else is going on in the world of EA? Well, the Sims 3 is getting a new expansion pack, but not just any ordinary expansion pack I might add! It will be taking you back to...the future! You can expect some crazy new things such as hoverboards and jetpacks, and the ability to be able to communicate with your Sim's descendants, which could get pretty interesting....or weird. Not only this, but a second new Sims 3 pack is coming along called the Movie Stuff pack which will be adding "Western, Comic Book Blockbuster and Creepy Features" for purchase in the stores.
When can you expect these expansions? Wait for it....in the fuuuttuuurreee! No really, sometime in the future, you'll just have to wait! Now you've all been caught up in the latest news about EA, so go outside for some fresh air, you deserve it!