EA Breaks a Billion Bucks in Digital

EA Breaks a Billion Bucks in Digital

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Electronic Arts hit the $1 billion mark in digital revenues in 2011.

"Everything is digital" is how EA chief John Riccitiello put it in a memo leaked to Kotaku and it's hard to argue with the man given his reason for making the statement. "One year ago, we set a stretch goal to grow our digital business to $1 billion annually," he said. "I'm proud to say that we achieved that goal in CY11. Crossing the $1 billion threshold is an incredibly important milestone - congratulations!"

To capitalize on this success, Riccitiello revealed that EA Interative, which was established to handle EA's mobile and social games and Pogo, is being "folded into" other parts of the company as part of a wider, digital-focused restructuring. A newly-formed team of engineers and technologists is "securing our systems and... building infrastructure for EA's own platform," while COO Peter Moore will head up a new "Customer Experience Group" dedicated to "helping us reach and support our customers, partners and development teams online." Riccitiello also promised that we'll "be hearing a great deal about" Origin, EA's digital distribution platform, in 2012.

A billion bucks is a lot of money but as Edge notes, EA may very well have blown more than that to make it happen. It dropped $750 million on PopCap in July 2011, a sum which could balloon to $1.3 billion if financial targets are met over the next 18 months. It's a safe bet that the launch of Origin in June 2011 was also a mighty expensive undertaking.

Still, there's no doubt that the times, they are a-changin', and that what was a tiny slice of the pie just a few years ago now represents the most significant space for revenue growth in the videogame industry. That's something to think about the next time you find yourself annoyed by launch-day DLC.

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EA stands for Expensive Achievement.

This makes me sad. Call it a bias, but I really hate EA, and I hate ORIGIN even more.

Andy Chalk:
It's a safe bet that the launch of Origin in June 2011 was also a mighty expensive undertaking.

Hard to believe considering how crappy Origin is.

And yet they didn't get a single penny off me.

IF they still continue to have childish arguments with Activision, as well as fall behind Steam in the DD model (sales and well varied community and more), then in 2012 they will still won't get to chomp on my money.

And yet as things stand now the only hope EA has of getting any more out of my wallet is Generals 2.

I guess Battlefield 3 requiring Origin pushed up the Origin population though, thankfully that means i know where not to go to talk to people.

inb4 EA Hate.....wait missed it already

And to me they are putting in a very large short term investment which they are hoping pays off in the long run, which seems to be working.

A couple typos, Andy.

"EA Interative" in the second paragraph.
"CY11" in the first paragraph. Should be FY11, right?

On a more related note:

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!

Wow, Origin is worth 1 billion. Expect more spyware laden digital platforms in the future. With this consumers have sent a clear message that invading our privacy is just fine with us, good work.

Big Bad Goat:

Andy Chalk:
It's a safe bet that the launch of Origin in June 2011 was also a mighty expensive undertaking.

Hard to believe considering how crappy Origin is.

Depends, how much of that billion do you think is selling information?

Allegedly.

And next week when its revealed that EA employees account for about half that income I won't be shocked.

AnarchistAbe:
This makes me sad. Call it a bias, but I really hate EA, and I hate ORIGIN even more.

Wowzers, it only took two posts to get the EA hate! What a shocker!

ph0b0s123:
Wow, Origin is worth 1 billion. Expect more spyware laden digital platforms in the future. With this consumers have sent a clear message that invading our privacy is just fine with us, good work.

And good work on doing research on the subject. Read the EULA. It's the same as Steam's and has been for somewhere around half a year now. And if Origin is taking information, do you think Steam isn't? I mean, really?

Frostbite3789:

ph0b0s123:
Wow, Origin is worth 1 billion. Expect more spyware laden digital platforms in the future. With this consumers have sent a clear message that invading our privacy is just fine with us, good work.

And good work on doing research on the subject. Read the EULA. It's the same as Steam's and has been for somewhere around half a year now. And if Origin is taking information, do you think Steam isn't? I mean, really?

I'm not the one lacking in research. Origin harvests software and hardware information from your PC without your permission, where as Steam does not without your permission. Does not matter whether they changed the details about selling that info to third parties or not(the main change in the EULA). The only other software to harvest personal information from your PC without your permission is spyware.

Zenode:
And to me they are putting in a very large short term investment which they are hoping pays off in the long run, which seems to be working.

That's the idea, but I'm skeptical that the Popcap buyout will be good for them in the long run. It was really expensive, and the casual market can be extremely fickle. Past hits aren't really a guarantee that the company will continue to rake in the dough in the future. In fact, I'd be surprised if they do.

The EA hate in this thread is pretty crazy . Like they are doing anything different to other major publishers....

ph0b0s123:

Frostbite3789:

ph0b0s123:
Wow, Origin is worth 1 billion. Expect more spyware laden digital platforms in the future. With this consumers have sent a clear message that invading our privacy is just fine with us, good work.

And good work on doing research on the subject. Read the EULA. It's the same as Steam's and has been for somewhere around half a year now. And if Origin is taking information, do you think Steam isn't? I mean, really?

I'm not the one lacking in research. Origin harvests software and hardware information from your PC without your permission, where as Steam does not without your permission. Does not matter whether they changed the details about selling that info to third parties or not(the main change in the EULA). The only other software to harvest personal information from your PC without your permission is spyware.

Sorry to butt in. Steam can but only if they ask your permission first.

Findlebob:

ph0b0s123:

Frostbite3789:

And good work on doing research on the subject. Read the EULA. It's the same as Steam's and has been for somewhere around half a year now. And if Origin is taking information, do you think Steam isn't? I mean, really?

I'm not the one lacking in research. Origin harvests software and hardware information from your PC without your permission, where as Steam does not without your permission. Does not matter whether they changed the details about selling that info to third parties or not(the main change in the EULA). The only other software to harvest personal information from your PC without your permission is spyware.

Sorry to butt in. Steam can but only if they ask your permission first.

That's what the guy said.

OT: I don't know what to say, really. On on hand, it's nice that somebody is still making money. On the other, I'm reasonably certain Activision made that much money with the release of Modern Warfare 3 alone, not to mention Steam's achievements for 2011...Sounds a bit like saying that 5 million copies of Battlefield 3 in a week was awesome, then MW3 sold twice that in 24 hours.

Glad to see it.

Origin has been great and I hope it continues to improve to the point where it truly competes with Steam.

*Raises beer* Here's to every publisher having their own DD software platform. That's all this is going to encourage. *Rolls eyes*

glenbruton:
The EA hate in this thread is pretty crazy . Like they are doing anything different to other major publishers....

And they will continue to get it until they have a few years under their belt and prove that they and your library aren't going anywhere.
They have a spotty rep and they could have started off on a better foot by sticking with Steam when they launched Origin, or at the very least gave the public an honest answer when they cut ties with them.
If they do stick to it, expand their library and come up with ways to enrich the drm experience, Steam will get some needed competition. If it's just another cash grab and they just do the minimum to keep it going, the hate will stay strong and it'll end up like another GFWL or Ubistore mess.

I hope Origin crashes and burns in a big fire. BF3 was a definate purchase for me, until I read about Origin. I even emailed the PR person from EA and someone else cant really remember who it was but there was a list of people on a thread on reddit.

I basicly asked how the hell can you justify this program harvesting so much information, software, hardware and external hardware in the interests of "customer service". Needless to say I didnt get a reply despite sending a second email.

To date Origin has not earned a cent from me and never will until the people pulling the strings change their mo drastically.

there's a difference between people buying because they want to, and forcing them at gunpoint to use the service or else

Frostbite3789:

ph0b0s123:
Wow, Origin is worth 1 billion. Expect more spyware laden digital platforms in the future. With this consumers have sent a clear message that invading our privacy is just fine with us, good work.

And good work on doing research on the subject. Read the EULA. It's the same as Steam's and has been for somewhere around half a year now. And if Origin is taking information, do you think Steam isn't? I mean, really?

I read the EULA, and it isn't the same.
http://store.steampowered.com/subscriber_agreement/
http://eacom.s3.amazonaws.com/EULA_Origin_9.16.11.pdf
If you would like to point out the "same" bits. I could have missed something, entirely caps text makes my eyes bleed.

 

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