Electronic Arts Announces Fiscal Year Results Share on Facebook Share on Twitter Update ID

Electronic Arts has announced its final financial results for the year that ended on March 31, 2006. Annual revenue declined slightly to $2.95 billion from $3.12 billion in the 2005 fiscal year. Just 27 of its games sold more than a million copies, down slightly from 31, though a quarter of those titles sold at least several million units. Actual profit declined to about a quarter billion dollars from half a billion the year before.

None of these figures were particularly surprising, since EA is heavily investing in development of games for next-generation systems. EA games have nearly one third of the XBox 360 market, and numerous Playstation 3 and Nintendo Wii games are set to release this fall and in 2007. The costs associated with expanded research & development, combined with the lower install bases for the new systems, will probably continue to constrain revenues and profit for the next year. This should ultimately lead to a booming and revitalized software market by 2008. PC games, which are less impacted by hardware cycles, edged up slightly to account for about 15% of EA's total sales. The company continues to hold liquid assets in excess of $2 billion to fund future activities.

In other news, the company will unveil about a dozen high profile games next week at the Electronic Entertainment Expo. They've also recently resolved the legal case involving software engineer overtime with a $15 million payout to the class which brought suit.


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