EA is Gearing Up for Xbox Next and PlayStation 4

Image Credit: Electronic Arts Homepage | Official Website

After announcing their second quarter financial reports, Electronic Arts indicated that they are investing their money on next-generation gaming development.

Based on a press release posted by the game developer yesterday, they are clearly gearing up and developing games for the purported Xbox Next and PlayStation 4. A clear indication of that is the amount of expenses that EA has shown in their Research and Development department.

Looking at the numbers, the three-month outlook reveals that EA is investing a total of $314 Million in R&D, followed by the Marketing and Sales department at $212 Million. This could also be an indication that a next-generation gaming console from Microsoft and Sony is looming.

Industry pundits can make any speculation out of it, but one thing is for sure: EA is deep into next-generation gaming development as of the moment.

Increased Revenue on Games and Meeting Financial Expectations

In relation to this, AMOG reported yesterday that EA reported $1.08 Billion worth of revenue for its recent quarter. The company’s profit falls almost in line with the analysts’ expectations, and it is also slightly over the $1.03 Billion that was reported during the same period last year.

A big part of its increase in revenue can be attributed to the sales report of FIFA 13. Within four weeks of its availability, the game was able to sold 7.4 million units on consoles and PCs. As a result, FIFA 13’s release was labeled as the strongest sports game launch in history.

Aside from that, Madden’s sales also went up nine percent yearly. As stated by EA CEO John Riccitiello:

EA is performing well, once again beating street consensus in fiscal Q2. We delivered yet another quarter of sharp digital growth, with digital revenue up 40 percent compared to the same period last year, reflecting out strength across multiple brands and channels.

The digital sales of FIFA 13 went up to 40 percent year-on-year at $324 million. It’s not just platforms like iOS and Facebook that are performing, considering that day one FIFA iOS sales were up 62 percent annually.

On the other hand, it is expected that the Christmas quarter could bring in between $1.25 Billion to $1.35 Billion of revenue. That is just a shy away from what analysts are expecting. After all, more fans will be buying games as a gift for themselves or for others during the holiday season.

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