Key Takeaways
1. Tariffs have increased prices for consoles and games from major companies like Nintendo, Sony, and Xbox.
2. EA is maintaining its current game pricing, showing confidence in its business growth.
3. EA reported strong Q4 performance, with broad-based momentum across its portfolio.
4. Notable sales include The Sims with double-digit growth and the American Football franchise exceeding $1 billion in net bookings.
5. EA is optimistic for FY26 with upcoming titles like Battlefield and Skate, but acknowledges potential challenges from existing games and recent layoffs.
The uncertainty around tariffs has had an effect on the gaming sector, leading to increased prices for consoles and games from major players like Nintendo, Sony, and Xbox. Meanwhile, EA appears to be maintaining its current pricing for games, showing confidence in its expanding business, at least for the time being. This information was shared during the company’s latest earnings call, where executives discussed various reports and the results for Q4.
Strong Performance in Q4
Stuart Canfield, the CFO of Electronic Arts, mentioned that the company finished FY25 on a high note, with Q4 demonstrating “broad-based momentum across the portfolio positioning the business for accelerated growth.” During the earnings call, a query regarding price hikes for games was posed, referring to Nintendo and Xbox. Canfield responded by saying that there will be no alterations to the current strategy for now.
Impressive Sales Figures
Highlights from the call reveal that The Sims achieved double-digit growth in the quarter, while Split Fiction has sold nearly 4 million units since its launch in March. In addition, EA’s American Football franchise surpassed $1 billion in net bookings for FY25.
Looking Ahead to FY26
As for FY26, EA is optimistic that the upcoming next Battlefield game, along with Skate, The Sims, and the EA Sports portfolio, will contribute to year-over-year growth in net bookings. However, it does recognize that the growth in net bookings and live services may be countered by Apex Legends and potential challenges from their catalog. This could relate to the recent layoffs at EA affecting the Apex Legends and Star Wars Jedi teams.
In good news for EA fans, they can be assured that prices for their beloved franchises will stay the same, at least for now. Moreover, the next Battlefield game is set to be revealed this summer and will be released by March 2026.
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