This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Unsplash/CC0 Public Domain Electronic Arts is cutting about 5% of its workforce, or approximately 670 employees, as layoffs in the technology and gaming sector continue after a surge of hiring in recent years. The video game maker said in a regulatory filing that its board approved a restructuring plan that includes th ...

A month has gone by since the last earnings report for Electronic Arts (EA) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Electronic Arts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Electronic Arts' Q3 Earnings and Revenues Ris ...

Gaming giant Electronic Arts is Inc reducing its workforce by 5% as part of a broader restructuring plan to limit costs across the company’s operations. According to the latest numbers published in May 2023, EA employs 16,400, meaning around 670 employees will be laid off. EA is expected to incur between $125 million and $165 million in total charges in connection with the restructuring. In a letter to employees, chief executive Andrew Wilson announced that EA will also be “sunsetting games” while “moving a ...

Electronic Arts, which makes such games as Madden NFL and Apex Legends, said today that it plans to lay off five percent of its employees and will discontinue work on several games. The announcement continues the ongoing downsizing in the gaming and tech space, a development that has seen thousands of jobs lost. EA said the layoffs are part of a broader restructuring aimed at supporting “strategic priorities and growth initiatives,” according to a Tuesday securities filing. EA said in that document that i ...

Videogame maker Electronic Arts Inc. said Wednesday it will cut about 5% of its workforce and plans to cancel some games in development.In a letter to employees, Chief Executive Andrew Wilson said “we are streamlining our company operations to deliver deeper, more connected experiences for fans.”He said the layoffs will affect about 5% of the company’s global workforce, which would be around 670 people, based on a staff of 13,400 as of last March, according to an SEC filing. “We are also sunsetting games an ...

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Today Electronic Arts Inc. (NASDAQ: EA) announced that F1® 23 players can jump into Time Trial challenges with selected all-new 2024 team cars prior to this weekend’s opening race by pre-ordering* F1® 24^, coming May 31 across PlayStation®5, Xbox Series X|S, PlayStation®4, Xbox One, and PC, via EA App, Epic Games Store, and Steam. For a time-limited period, a new loyalty program rewards drivers who own any of F1® 2021, F1® 22, or F1® 23 with a 15% discount when they pr ...

Electronic Arts Inc. has finally revealed how much it will pay college athletes to appear in its highly anticipated upcoming videogame “EA Sports College Football 25.”A total of 11,390 college-football players from 134 FBS schools will be eligible to receive $600 each for their name, image and likeness (NIL) to appear in the game, no matter if they are the star quarterback or a backup defensive lineman on their team. Players will also get a free copy of the game from EA Sports, Electronics Arts’s EA, +1.91% ...

ToplineEA Sports’ college football franchise will return this summer, the video game company announced Thursday, after the franchise was discontinued over a decade ago amid ongoing lawsuits over whether college athletes should be paid for their names and likenesses.The video game company last released a college football title in 2013. NurPhoto via Getty Images Key FactsThe new game—”EA Sports College Football 25”—was confirmed for an unspecified launch date for “this summer” in a new trailer, with a full re ...

Madden NFL 24's official prediction has the Kansas City Chiefs beating the San Francisco 49ers, 30-28, in Super Bowl LVIII. (Graphics: Business Wire)REDWOOD CITY, Calif.--(BUSINESS WIRE)--EA SPORTS™ is celebrating the biggest moment of the 2023 National Football League (NFL) season with a large presence around Super Bowl LVIII. Across a multitude of experiences onsite in Las Vegas, digital content, and through play in EA SPORTS™ Madden NFL 24, EA SPORTS is squarely at the center of football culture. Today, ...

Revenue Performance - Total net revenue for the fiscal quarter ended December 31, 2023 was $1,945 million, up 3% year-over-year[130] - Live services and other net revenue was $1,327 million, up 5% year-over-year[130] - Net revenue for Q3 2023 was $1.945 billion, driven by EA SPORTS FC 24, FIFA 23, Apex Legends, EA SPORTS Madden NFL 24, and The Sims 4, representing a $64 million increase compared to Q3 2022[166] - Net revenue for the nine months ended December 31, 2023 was $5,783 million, a 4% increase compared to the same period in 2022, driven by EA SPORTS FC 24 and Star Wars Jedi: Survivor[170] - Full game net revenue for Q3 2023 was $618 million, a 1% decrease from Q3 2022, primarily due to the prior year release of Need for Speed Unbound and a decline in the global football franchise, partially offset by Star Wars Jedi: Survivor[168] - Live services and other net revenue for Q3 2023 was $1.327 billion, a 5% increase from Q3 2022, driven by sales of extra content for Ultimate Team within the global football franchise, partially offset by decreased sales for Apex Legends[169] - Full game net revenue increased by $117 million (7%) to $1,682 million, primarily driven by Star Wars Jedi: Survivor and the global football franchise[172] - Live services and other net revenue increased by $114 million (3%) to $4,101 million, driven by sales of extra content for Ultimate Team within the global football franchise[173] Net Bookings and Sales - Net bookings for the three months ended December 31, 2023 were $2,366 million, driven by sales of EA SPORTS FC 24, EA SPORTS Madden NFL 24, Apex Legends, and The Sims 4[141] - Live services and other net bookings increased by $57 million, or 3%, to $1,712 million for the three months ended December 31, 2023[141] - Full game net bookings decreased by $33 million, or 5%, to $654 million for the three months ended December 31, 2023[141] - Digital full game downloads accounted for 68% of total units sold in fiscal year 2023, up from 65% in 2022[133] - Full game downloads revenue for Q3 2023 was $431 million, a 2% increase from Q3 2022, while packaged goods revenue decreased by 6% to $187 million[167] Gross Margin and Profitability - Gross margin increased to 72.8%, up 3 percentage points year-over-year[130] - Net income was $290 million with diluted earnings per share of $1.07[130] - The effective tax rate for the nine months ended December 31, 2023 was 18%, lower than the 29% in the same period in 2022, due to a one-time tax benefit and R&D capitalization guidance[187][188] Cash Flow and Financial Position - Net cash provided by operating activities was $1,264 million, up 13% year-over-year[130] - Cash and cash equivalents increased by $318 million to $2,742 million as of December 31, 2023, compared to March 31, 2023[191] - Net cash provided by operating activities increased by $802 million to $1,735 million in 2023 compared to $933 million in 2022, driven by higher collections and lower tax payments[192][193] - Net cash used in investing activities decreased by $22 million to $158 million in 2023, primarily due to a $207 million increase in proceeds from short-term investments[192][193] - Net cash used in financing activities increased by $22 million to $1,264 million in 2023, mainly due to higher withholding taxes and stock repurchases[192][194] - The company returned $1,129 million to stockholders in 2023, including $975 million in share repurchases and $154 million in dividends[200] Revenue Recognition and Accounting Policies - Revenue from Games with Services is allocated 75% to software license and 25% to future update rights and online hosting, recognized ratably over the Estimated Offering Period[146] - Revenue from Online-Hosted Service Games is recognized as the service is provided, with one distinct performance obligation: online hosting[147] - Revenue from extra content is accounted for similarly to Games with Services if it has offline functionality, otherwise as one distinct performance obligation: online-hosted service[148] - Subscription revenue is recognized ratably over the subscription term as the performance obligation is satisfied[149] - Licensing revenue includes fixed minimum guarantees and sales-based royalties, recognized upon commercial launch and ratably over the contractual term for future update rights[149] - Revenue for service-related performance obligations is recognized over an estimated 8-month period for digitally-distributed games, 10-month period for retail games, and 12-month period for PC and console free-to-play games[155] Expenses and Costs - Cost of revenue decreased by $39 million (7%) during the three months ended December 31, 2023, primarily due to lower royalty costs and decreased acquisition-related intangible asset amortization[175] - Research and development expenses increased by $89 million (5%) during the nine months ended December 31, 2023, primarily due to higher personnel-related costs and stock-based compensation[181] - Marketing and sales expenses increased by $62 million (9%) during the nine months ended December 31, 2023, primarily due to rebranding investments for EA SPORTS FC 24[184] - General and administrative expenses increased by $8 million (5%) during the three months ended December 31, 2023, primarily due to higher personnel-related costs[186] Foreign Currency and Hedging - The strengthening of the U.S. dollar negatively impacts the company's reported international net revenue, particularly against currencies like the Euro, British pound sterling, Australian dollar, Japanese yen, Chinese yuan, South Korean won, and Polish zloty[205] - The company uses foreign currency hedging contracts to mitigate some foreign currency exchange risk, but these activities are limited in protection and can result in losses[205] - A hypothetical adverse foreign currency exchange rate movement of 10% or 20% would result in potential declines in the fair value of foreign currency forward contracts used in cash flow hedging of $197 million or $393 million, respectively, as of December 31, 2023[208] - A hypothetical adverse foreign currency exchange rate movement of 10% or 20% would result in potential losses in the Condensed Consolidated Statements of Operations on foreign currency forward contracts used in balance sheet hedging of $203 million or $405 million, respectively, as of December 31, 2023[208] Investments and Financial Instruments - Short-term investments had gross unrealized gains of less than $1 million, representing less than 1% of total short-term investments as of December 31, 2023[195] - The company's short-term investments are classified as available-for-sale securities and recorded at fair value, with changes in fair value reported as a separate component of accumulated other comprehensive income (loss), net of tax, in stockholders' equity[211] - A hypothetical 150 basis point increase in interest rates would result in a $3 million, or 1%, decrease in the fair market value of the company's short-term investments as of December 31, 2023[212] - A hypothetical 150 basis point increase in interest rates would result in a $3 million decrease in the fair market value of short-term investments[212] Debt and Credit Facilities - The company issued $750 million in 2031 Notes with a 1.98% interest rate and $750 million in 2051 Notes with a 3.04% interest rate[196] - A $500 million unsecured revolving credit facility was established on March 22, 2023, with no amounts outstanding as of December 31, 2023[198] Capital Expenditures and Shareholder Returns - Capital expenditures are expected to be approximately $250 million in fiscal year 2024, primarily for facility buildouts[199] - The company returned $1,129 million to stockholders in 2023, including $975 million in share repurchases and $154 million in dividends[200] Internal Controls and Risk Management - The company's Chief Executive Officer and Chief Financial Officer believe that the disclosure controls and procedures were effective as of the end of the period covered by the report[214] - There has been no change in the company's internal controls over financial reporting that has materially affected or is reasonably likely to materially affect the internal control over financial reporting during the fiscal quarter ended December 31, 2023[215] - The company's system of disclosure controls and procedures has inherent limitations, including the possibility of human error, circumvention or overriding of controls, and reasonable resource constraints[216]