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EA saw digital sales beat out physical last quarter, showed big profits

by Eric Frederiksen | May 7, 2015May 7, 2015 3:40 pm PST

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Electronic Arts had a solid fiscal year for 2015, pulling $806 million in profit thanks to some of their biggest games.

The company experienced a 20 percent jump in revenue over the previous fiscal year and narrowly beat out analyst predictions and a 50 percent jump in profits.

The company had an even better fourth quarter, when it beat market analyst expectations, pulling in $395 million in profit. What’s interesting, though, is where that money came from. Two thirds of EA’s fourth quarter revenue came from sales of digital games and goods, while packaged content was only responsible for about a third.

Of that digital revenue, about 40 percent was generated from micro transactions and DLC sales.

EA aims to increase revenue over the next year by about half a billion thanks to releases like Star Wars: Battlefront and other fall releases. The company plans to try to buy back about $1 billion in stock from shareholders in the next year as well.

Digital sales are getting bigger, and DLC and micro transactions are a big part of that. It’ll be interesting to see how fast the shift to digital is over the next year.

Gamasutra

Eric Frederiksen

Eric Frederiksen has been a gamer since someone made the mistake of letting him play their Nintendo many years ago, pushing him to beg for his own,...

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