2019 Vault Rankings
At a Glance
Ability to work on latest video games
Many positions require extensive overtime hours
EA is an industry leading video game developer with moderate employee satisfaction. ?
About Electronic Arts Inc.
Electronic Arts (EA) puts gamers in action on the gridiron, the pitch, the battlefield, and in outer space with its most popular games. Its leading titles are Madden NFL, FIFA, and Star Wars, all of which it licenses from other companies, and its own Battlefield, Mass Effect, and The Sims. While EA generates increasing sales for games on mobile devices, it still makes most of its revenue from games played on consoles from Sony and Microsoft and on personal computers. The company is moving into competitive gaming and eSports with its Competitive Gaming Division. EA gets about 60% of revenue from international customers.
Electronic Arts collects revenue from sales of its games on disc, digital downloads (onto several platforms), subscription fees, and in-game transactions.
Digital has become increasingly important for EA, bringing in more than 75% of revenue. Digital revenue includes Live Services, 45%, Mobile, about 15%, and full game downloads, about 15%.
Live Services offers extra content for consoles, PCs, and browser games; game software licensed to third-party publishers; subscriptions; and advertising.
Mobile, about 15%, offers full games and extra content on mobile and tablets.
Full game downloads include revenue from digital sales on consoles and PCs.
Packaged goods account for about 35% of revenue. Packaged goods include game shrink-wrapped software sold through traditional channels such as brick-and-mortar retailers.
Perennially popular games are FIFA, Madden NFL, Star Wars, Dragon Age, Battlefield, and The Sims. FIFA is a top seller, generating some 15% of the company's revenue.
California-based Electronic Arts operates development studios in North America and leases properties for R&D, sales, and administration in Europe and Asia. North America is its largest market, accounting for more than 40% of sales. International customers supply the rest.
Sales and Marketing
As Electronic Arts' business becomes increasingly digital, more of its sales are generated through the internet. Such channels include Origin, the company's direct-to-consumer platform, digital downloads from third-party retailers, and mobile applications.
EA depends on two major console makers for about 45% of revenue. Games for Sony's PlayStation supply about 30% of sales and games for Microsoft's Xbox account for about 15% of sales. EA also sells packaged games to retailers, including mass merchants (Walmart), consumer electronics stores (Best Buy), and specialty game shops (GameStop). EA has partnerships with Tencent Holdings Limited in China and Nexon Co. Ltd.
Electronic Arts' revenue has fluctuated in recent years, generally based on the timing of game releases.
Its performance in 2019 (ended March) was no exception with revenue dipping to $4.9 billion, about $200 million less than 2018's revenue. Lower sales of the Battlefield franchise and Mass Effect: Andromeda reduced revenue about $635 million, while the FIFA and The Sims franchises recorded stronger sales. Digital sales rose about 8% in 2019 over 2018 on increases in live services and mobile revenue, but sales of full game downloads fell.
EA posted a profit of about $1.02 billion in 2019 compared to $1.04 billion in 2018. It had higher expenses in 2019, but a lower tax bill than in 2018, which was affected by the US Tax Cuts and Jobs Act.
Electronic Arts had $4.7 billion in cash at the end of 2019 compared to $4.2 billion at the end of 2018. Operations produced $1.5 billion in 2019 and investing activities provided $169 million, while investing activities used $1.21 billion.
Electronic Arts has perennial moneymakers, FIFA, its soccer series, Madden, its NFL game, and The Sims. The company's challenge is to develop new franchises that open with a bang and deliver recurring revenue.
Its recent release, Apex Legends, a free-to-play game, was the fastest-growing new game EA has released, hitting 50 million players in what the company called a short time. Some 30% of the game's players were new to EA.
The release of Anthem in February 2019 did not measure up to players' or EA's expectations. The game, developed by EA's Bioware subsidiary, received tepid reviews amid complaints about lack of depth and variety as well as bugs. EA has promised to address players' concerns in updates.
Despite those travails, EA's player base grew to more than 500 million active player accounts in its 2019 fiscal year, driven by its top franchises, live services on major platforms, and Apex Legends.
As EA looks for more blockbuster games, it has ample cash, about $4.7 billion at the end of 2019, to buy rising gaming companies.
To improve internal operational efficiently, EA has moved nearly all of its development activity to one game engine. This allows the company's developers to work across platforms, which in turn accelerates development and streamlines technology operations.
Mergers and Acquisitions
In late 2017 Electronic Arts acquired independent game development studio Respawn Entertainment LLC, creators of AAA shooter and action games, including the critically acclaimed Titanfall franchise.
After four years with
209 REDWOOD SHORES PKWY
Redwood City, CA 94065-1175
Phone: 1 (650) 628-1500
Employer Type: Publicly Owned
Stock Symbol: EA
Stock Exchange: , NASDAQ
EVP and CFO: Blake J. Jorgensen
Executive Chairman: Lawrence F. Probst
CEO: Andrew Wilson
Employees (This Location): 475
Employees (All Locations): 9,700
Redwood City, CA
Los Angeles, CA
Baton Rouge, LA
New York, NY
Pearl River, NY