Electronic Arts Inc. (NASDAQ:EA) Q3 2023 Earnings Call Transcript

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Is there a broader theme emerging around getting titles right before they launch, or are there elements where you need to see the council cycle possibly be maybe deeper into what it’s happened over the last couple of years to maybe see the success. You want to see with some of the titles. How should we think about the broader narrative around content being pushed out across the industry and with you guys idiosyncratically? Thanks.

Andrew Wilson : Okay, that is two solid questions. Let me start and then maybe Chris and Laura can provide some color as we get in. First off on mobile, I think a few things that we start with, and certainly I think that we, you know we think through on a daily basis, which is while the mobile market continues to be a very challenging market to find success in, it also continues to be the world’s largest gaming platform and certainly has the ability to attract more plays than any other platform. And so for us it will always be a very important part of our go forward franchise strategy. When we think about mobile broadly, we really think about the titles fitting into two key categories. The first category is what you speak to in the connective sports, but it’s also true for Sims and Apex and Battlefield, and will be true for Skate, which is how is it part of a broader cross platform global community of play, and how do we unite and unify global communities of players around their core IP regardless of where they play on PC, mobile or console.

This for us represents probably our strongest opportunity in mobile and certainly where you’ll see us begin to really invest. When you look at what’s been happening with FIFI up triple digits, it’s really as we’ve started to bring the mobile title closer to the core franchise and start to operate it as a singular business with a unified play community around the world. It’s how we’re building for Skate, it’s how we’re going to build for the future of the Sims, and with these decisions around Apex and Battlefield, it’s also how we’ll build for those franchises. That represents an extraordinary opportunity for us to attract a much bigger global community to our biggest IP. It represents an opportunity to grow monetization on the mobile platform, but it also represents an opportunity to provide alternative ways for our existing core audiences who plan console and PC, to play when they are away from those core devices they have.

And as we look at the mobile market on a go forward basis, we think that that will be where we’ll find real strength for that part of our business. The other part is, the stand alone mobile native titles, and we have a number of titles that continue to perform exceptionally well. Star Wars Galaxy of Heroes, The Sims, some of the titles that we got as part of our Glu acquisition, Golf Clash. We’ll continue to invest in those as well, but you should expect that as we think about the future, we’re going to really lay our investment into our bigger franchise play. We will continue to drive the long term value of our existing standalone mobile titles and will probably invest less in new startup standalone titles, just because we think that’s probably not where we will find strength in the industry over time.

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