Nuggets from the Q1 Financial Results for Electronic Arts and Take Two

by pastapadre
Posted July 31st, 2012 at 2:00 pm

Both Electronic Arts and Take Two reported their first quarter (April-June ’12) fiscal year 2013 financials today. There are a few pieces of sports related news to draw from the reports.

EA has announced that pre-orders for Madden NFL 13 are up 25% compared to the same period for Madden NFL 12. The reasons for that likely include perceived strength of the product featuring coveted advancements like the “Infinity Engine” physics and Connected Careers mode, positive word of mouth coming off Madden NFL 12, fairly compelling pre-order incentives offering various legends for use in Connected Careers and Ultimate Team along with an Andrew Luck card for the latter, and deals like Amazon is offering by including a $15 promo credit with each pre-order. There could also be some money going towards Madden that otherwise would have been spent on NCAA Football 13 as early indications are that title will be down year-over-year.

NBA Live 13 is a glaring omission from the EA release schedule and that will add fuel to the fire that something is going on with it behind the scenes. Whether that is a cancellation, delay, change in format of release, or just the company dragging their feet in a fashion they never have before remains a mystery. What was discussed early in the month – with the game not being up for pre-order on Origin and retailers seemingly not even aware of a release date among other oddities – has not been resolved. EA has avoided responding to questions regarding Live 13 and notably have not been promoting it since the night of the NBA Draft. That EA doesn’t seem to care about the current perception towards the product is possible telling enough in itself.

FIFA Ultimate Team continues to rake in revenue for EA. The mode has made over $100 million since release last September and in the latest quarter, which comes in what normally would be a declining period after having been on the market for 6 months, it made $30 million.

Take Two again presented their fiscal year release schedule. The MLB 2K series, which is thought to be dead following the events of the previous quarter’s report, was absent again as expected. The company has not publicly buried it but there is little question that the series is over. NBA 2K13 remains the only 2K Sports title planned for release through the end of March 2013. The Wii U version is still scheduled for the holiday season with Nintendo yet to officially announce the release date for the system.

Tags: latest news

Keith.

I think the Madden pre-order numbers are BS. Take a look at EA’s financials — they’re predicting a loss this quarter between $434 million and $456 million (period ending September 30, 2012). Sure doesn’t sound like they’re expecting Madden to break the 7 year trend of declining sales.

Speaking of which, I’m still looking for takers on a bet if anyone out there thinks Madden 13 will actually outsell Madden 12. I extended the same bet with regard to NCAA and it’s a shame I didn’t get any takers, since that would’ve been money in my pocket based on the first 2 weeks worth of sales (which are down from last year).
- Keith.
  
  Here’s a link to the document showing the $434-$456 million loss EA is predicting for this upcoming quarter — it’s on page 13 of 27:
  
  http://files.shareholder.com/downloads/ERTS/1998703867x0x587373/37ea77ca-af8f-49f2-8871-5278a5574275/Q1FY13_EarningsSlides_FINAL.pdf
  - Keith is a faggit
    
    Dude really shut the fuck up, I’m tired of seeing your bum ass comments. You are not the professional in this situation, so do us all a favor and shut the fuck up.
    - Keith.
      
      Dude, if you want to keep your head in the sand and ignore reality, feel free to ignore my posts as well. Some people — like you — just prefer to remain stupid, and I’ve got no problem whatsoever with that.
    - Jack Sparrow
      
      How could YOU be such an obvious faggot and not know how to spell the word “faggot”. You don’t even deserved half of the penises that go into your mouth, let alone those that enter your bum.
    - Christopher5
      
      The truth hurts…but there is more to life than being an EA gamechanger. Just think of all the free time you will have becuase you don’t have to troll on websites?
- leonRG
  
  and you probably wouldve said that madden 12 would be lower then madden 11 and been wrong there. or that the numbers are wrong or ea is lying like you already are accusing them of. wouldnt trust making any bet with you.
  - Keith.
    
    You must not be listening to the call — Peter Moore just admitted that sales have declined “for packaged goods” when specifically asked about NCAA and Madden. He said it’s all about the growth in digital revenue, i.e., DLC.
    - Keith shut up
      
      SHUT UP YOU STUPID FAG!
      - Wolf Blitzed
        
        More EA employees are trying to keep a lid on good honest reporting around here. Keep up the good work Keith. I didn’t realize Pasta’s site had such an impact on the EA financial outlook. It’s working. It’s working.
      - http://www.facebook.com/people/Iown-You/100000775565221 Iown You
        
        Dude, you have to got to give it a rest. Your act is lame now. EA is going down in flames and there is nothing you can do about it but live it and love it.
      - Christopher5
        
        Go on little boy, get on outta here..let the big boys talk.
    - Keith.
      
      Someone on the call just pointed out that pre-order numbers are up, but actual sales numbers are not — lol. Riccotello and Peter Moore tried giving a spin answer before moving on to the next question.
    - Keith.
      
      Tough questions this call — someone just asked about NCAA’s actual sales numbers in comparison to last year’s NCAA. Their answer: “We don’t start comparing this early — it’s a long season. So far so good.” LoL.
- jpdavis1982
  
  I told you, just watch, Madden 13 will outsell Madden 12
  - Keith.
    
    Ready to take that bet? I’ll gladly put up whatever you want — just name the amount.
    - Gustav
      
      Woo for internet bets and anonymity. Good luck making that happen.
      - Keith.
        
        Who said anything about an anonymous bet? If someone would just take me up on it, I’d be glad to give my contact information. Hell, I’ll give my home address even — I’m that confident I’ll be the one to collect. 7 years of sales history don’t lie.
      - Gustav
        
        Saying you’re willing to do that and actually doing it are two very different things. And to be honest, if you were to give out your contact details like that to one of the internet gaming crazies, I’d have to call your sanity into question as well. Nevertheless, it’s all words and empty promises, so have fun kiddies.
  - Christopher5
    
    this isn’t the real Jpdavis1982…he knows better. But Keith there are alot of people out there that are willing to throw their money away on this game…on the fence about this. It will be close i think, but Madden 13 might sneak past Madden 12 in sales.
    - Keith.
      
      Nah — their overall sales have gone down every year, and this year will be no different. Just look at NCAA this year, which is down yet again. A LOT of people have had enough of Tiburon’s style of football.
      - Christopher5
        
        I hope i am wrong…this would be huge, and the end to all these horrible games. EA can’t keep going at this rate, and its just a matter of time. Heres to waiting..
      - Keith.
        
        If only PES could surprise everyone and pull off a sales upset over Fifa, putting a dent in EA’s true cash cow (Fifa DLC). EA would really be in even deeper shit than they are now.
- Keith is a homo
  
  SHUT THE HELL UP YOU STUPID HOE .
  - Keith.
    
    Now there’s an intelligent post…lol.
  - Amen_Ra
    
    Lame
  - Crimson
    
    LOL…I could be wrong, but I think this is Riccitiello. This is how he supposedly talks to his therapist when she recommends him stepping down
    from his position at EA, or suggests to him that he jump off the roof of company headquarters, “for the good of the company”.
    He’s paying her good money to help him, so one of those suggestions
    has got to be the right choice for EA shareholders, but seeing that he obviously hasn’t
    cared much about the shareholders up until now….I guess we’ll have to
    wait and see what happens.
- mcmax3000
  
  “Sure doesn’t sound like they’re expecting Madden to break the 7 year trend of declining sales.”
  
  Or, maybe they’re expecting a loss somewhere else?
  
  There’s a hell of a lot more to EA than just Madden.
  - Keith.
    
    A $400+ MILLION loss somewhere else? From where? Lol
    
    I think this confirms EA is losing FAR more on the exclusive license than anybody else could’ve guessed.
    - mcmax3000
      
      From, I don’t know, the fact that two of the three months in that quarter are some of the lowest selling months in the games industry, plus there’s been a general down trend the past few months in sales for the entire industry (at least at retail)?
      
      From the Old Republic, which is losing subscribers to the point that they’ve announced it’s going free to play less than a year after launch?
      
      NCAA 13, which most seem to feel is probably going to be down in sales this year (it’ll be a couple of weeks until the NPDs are out, and we see some actual sales information, but down sales seems to be the general consensus)?
      
      Or, more likely, a combination of everything? It’s not one single thing losing $400 Million.
      
      I’m sure Madden is probably part of is (especially considering the money they’ll be spending during that quarter on advertising, as there are usually Madden ads everywhere during its launch month), but my point is, Madden is not the be all, and end all for EA. They have a lot of other products.
      - Crimson
        
        Madden is an EA institution. The teams are practicing everywhere. Football season is coming. Madden IS the be all for EA at this particular time of the year. In August, Madden absolutely HAS to be a success for EA over any other franchise, especially if NBA Live 13 is going to be delayed or even cancelled again. THEY REALLY NEED THIS.
      - Keith.
        
        Goes back to what I was saying — the only thing up for EA is DLC revenue, which they can’t sustain forever, no matter how hard EA tries. Then again, if suckers keep paying for things like uniforms and Season Pass, I guess anything’s possible for EA…lol.
      - http://www.facebook.com/people/Iown-You/100000775565221 Iown You
        
        I think DLC is sustainable if it’s attached to a product that people are actually dying to buy versus a product that people just buy on routine.
      - Keith.
        
        They’re now down to selling uniforms as a new revenue stream — honestly, what else can they come up with? A time share at Riccotello’s beach home? The shirt off Peter Moore’s back? Lol. The nonsense has to end somewhere.
- Christopher5
  
  Would have jumped at the bet..but we all new that game would be broke.
Keith.

And lol at EA for having 3 years to develop NBA Live — and still not being able to get it done! Talk about a company full of incompetent hacks.
- wolf onatshirt
  
  I’ve been saying that from the get go. You know how many teams EA/Tiburon Madden have changed throughout the years? Let’s start with 06. Almost every year there’s a whole new team. Incompetency is an understatement. There’s something fishy about EA and it’s HR/Budgeting/marketing/managing dept.
  - http://www.facebook.com/people/Iown-You/100000775565221 Iown You
    
    That’s just it, they really don’t change teams. All they do is bring in a few new guys at the top and swap roles between people who have already been there. The “new team” thing is just some horseshit they tell the gullible public to ease their anger.
- asmckenna1215
  
  edit: my apologies, read the rest of the article and finally spotted NBA Live. Just never cared about basketball in the slightest to notice it before.
  - Wolf Blitzed
    
    There is a good, perfectly honest reason, for you not understanding, son. Where do you see the word Madden in the topic of this discussion? Do you ride the yellow school bus with the bars on the window or what?
    - asmckenna1215
      
      First: The twitter link I clicked on specified Madden. So…who cares?
      Second: Did you not read my edit? I thought they would teach you how to read in “normal” school. Guess Not.
      Third: What do you intend to get out of attempting to degrade me on the comment section of a sports game website? Does it help your self esteem to know that you tried to insult someone over the internet? If it does, your confidence must be very low.
      Fourth, and finally: Who the fuck do you think you are calling me “son?” What decade are you from, you old tool? The 1920s? And why don’t you stop hanging out on the internet and get a job that you should have to prepare to do something useful for in the morning.
      
      Pasta, I know you’re gonna delete this string of comments, but before you do consider kicking some of these losers off your website. I saw I made a mistake and corrected myself and I still had to take shit from some retard who thinks he’s cool because he has no better way to use his time than to try to argue with me.
      - Wolf Blitzed
        
        Wow, you sound stressed. Maybe you should take it easy on the meds, little fella. Maybe you should have read the article before opening YOUR mouth, huh. I replied before your edit. It was sarcasm. Are you ultra sensitive or what? People on the internet don’t really don’t give a shit about all that stuff you just spouted, you temperamental little princess. Now go and tell your mommy what the big old man said. Go on now. Git.
      - Wolf Blitzed
        
        Further more, there is a time stamp on every post. If you had looked you would have see that I replied a half hour before your edit. Stop your whining. Nobody cares about you being sensitive, we just care about the facts around here.
      - asmckenna1215
        
        so, you admit to being an old man, and you’re arguing with a teenager? ok…who’s the sad one?
Keith.

EA just said during their investor conference call that pre-orders for Dead Space 3 are “5 times” what they were for Dead Space 2, and that pre-orders for Chrysis 3 are “3 times” what they were for Chrysis 2. In other words, people should take the news about Madden’s pre-order numbers being up with a HUGE grain of salt — if you ask EA, everything’s up…lol.
- http://pastapadre.com/ pastapadre
  
  Pre-orders for sequels that come out a few years apart are FAR different than sports games which release every year. Any uptick, particularly after stagnating or dropping in previous years, is going to be encouraging. 25% would be pretty significant – though obviously that won’t necessarily translate to higher sales once the game is released. Just that interest is higher in it beforehand which is a positive sign.
  - Keith.
    
    What about Madden being available for pre-order at $44.95 — don’t you think that has as much to do as anything?
    - http://pastapadre.com/ pastapadre
      
      You could get it for that price last year too. In fact Amazon’s promo credit was $20 last year to match $40 at TRUS. So that’s probably not a big factor.
- Mason Drews
  
  Never heard of “Chrysis” before. Perhaps you meant Crysis?
  - Keith.
    
    Yep — that’s the one.
  - Wolf Blitzed
    
    No, I think he actually meant “crisis”, which is what EA is in right now. LOL.
    - Mason Drews
      
      LOL!
- daley7199
  
  You cant lie to your share holders. Its one thing to pull the wool over the eyes of your customers but it is an entirely different matter when you do that to investors. There are legal issues involved here and if you lie about your company then you will have the SEC to deal with. Anybody with a clue will see that Madden is definitely on the right track. Getting rid of Ian Cummings and Phil Frazier was just what the doctor ordered. Both of those guys have long since brought any fresh ideas to Madden and they essentially just mailed it in for several years. Frazier largely had an attitude with the fans when they clamored for things he wouldn’t give us. A new team with new ideas and a new physics engine is certainly indicative in the rise of preorders. Even Amen RA might actually get off his high horse and gain some sense……….but…..sadly, maybe not.
Wes

I’m someone who hasn’t bought Madden since Madden 10 but preordered this year. I just think they put in the effort now and its about time.
MJB

“…Madden NFL 13 are up 25% compared to the same period for Madden NFL 12.
The reasons for that likely include perceived strength of the product
featuring coveted advancements like the “Infinity Engine” physics and
Connected Careers mode, positive word of mouth coming off Madden NFL 12…”

Or maybe NFL/NFLPA labor peace this year could also have something to do with pre-orders comparing this year to last. Just sayin’.
- Keith.
  
  Good point — I’d completely forgotten about that.
daley7199

This is certainly uncharted territory for EA with its handling of LIVE. Just recently they formally modified there forum to reflect Live 13 but there is absolutely no information regarding the game.

My guess is that in light of all the hype they did with Elite, they may be a bit wary in over promoting the game, especially since most of the comments will be negative regardless. It is better to be presumed a bad game then to start hyping it and removing all doubt.

I really think EA has nothing to gain and everything to lose by promoting Live 13 especially after what has transpired with Elite. When the game is finished then they can promote the game but until that day, I think its a good thing that they keep the game under wraps.
- Crimson
  
  Wow…I agree with this guy. That’s never happened before.
  - daley7199
    
    See what happens when you take your 2k glasses off
    - Crimson
      
      LOL, I was still wearing them at the time.
Tim Brady

finally…….. a relevant place for keith to yap about stock prices. i’m sooooo tired of seeing it in every fucking madden related article. This is your time Keith. Your proper place to talk about shit nobody cares about. We care about the games, not the stock.
- Keith.
  
  EA brought it on themselves. I care about finally getting a great NFL game, too, which is why I care about EA’s tanking stock. Think I’d give two shits about what those clowns at Tiburon have cooked up if there was another NFL game to play?
  
  Like I said, thank EA for the exclusive license and 8 years of mediocrity not me.
  - http://twitter.com/KCgriffith1 Mysteriously Unnamed
    
    Thats you r problem man. You blame EA for everything. The NFL choose to sell them the license. NFL is to blame just as much if not more.
  - TexasHammer
    
    Hey, I agree with everything you have said. I’m tired of the mediocre football game EA release year after year! Keep shedding light on this situation.
- Carol Brady
  
  Oh and of course you speak for all. A lot of us can appreciate what Keith has to say. By the way, we all took a vote, and the strangest thing happened. It was actually you that we all voted in favor of shutting the fuck up.
- Christopher5
  
  The tanking stocks say it all. Its hard to see it for some, but the truth is out there…keep searching. Just look at the details, and you too will see that these franchises are on their way out!!
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http://pulse.yahoo.com/_YTNGCHOCHXG7PYM5R3H6HRUGYA Alex

Its crazy to see NBA Live as the underdog now and 2k is the top basketball game now. And I know most people are saying Live should release or should have released some gameplay but I dont think its smart for EA to do so their best bet is to wait for 2k to release their information about the game first
Dee

October is not here yat so get off wack azz 2K nutz