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

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To hit your second part around title launches, and certainly I think we’re hearing more about that across the industry, and I just, I’d separate what you are hearing from us with everything that you’re hearing around the industry broadly. While it might be €“ it might make sense to kind of draw a broader narrative, I think for us as we look at it, we launched a number of titles in Q3 and Q4 certainly with Dead Space and Need For Speed and NHL some of our smaller titles, and FIFA and Madden, we’ve launched an incredible amount of titles on time and at tremendous high quality. I think what we saw with Jedi, was this is an incredibly large game. It’s you know both, immersive and creative and innovative, and the team just have come down the home stretch and really want to get to quality.

And when we think about quality, quality is really a combination of three things: Innovation, Creativity and Polish. And that last element Polish, the removal of bugs and the removal of potential play frustrations is as important as the innovation and the creativity itself. And so as we look at our future, we feel that we’ve been executing extremely well till this point, around the titles and the title updates that we’ve been launching. We also feel incredibly bullish and positive around the trajectory of Jedi. And when the team came and sat down and said, €˜Hey, if you let us have just a few more weeks, we think we can deliver even higher quality.’ We really wanted to get behind and support them. After all, this is an incredible team with the first iteration of the franchise that they launched.

They broke all kinds of records. They are deeply committed to the franchise, deeply committed to our partners at Disney and deeply committed to our players, and we really wanted to get behind them and support it, especially as it will not impact the overall health of the franchise. In fact, it will not only last with a better quality, but almost certainly increase the lifetime value of the franchise over time.

Eric Sheridan : Thanks Andrew.

Operator: Your next question will come from the line of Stephen Ju with Credit Suisse. Please go ahead.

Stephen Ju : Okay, thanks. So Andrew, you know we do have a bit of a setback in the transition to mobile, given the developments across Apex and Battlefield. So naturally this makes us worry a little bit more about how Glu was coming along, because the thesis at the time of the acquisition was to bring some of the success that has had in the more, shall we say the casual sports franchises in exporting that dynamic of FIFA, Madden, etc. So can you update us on your progress there? And I guess FIFA Online 4, triple digits, that’s a pretty remarkable result, and I presume there will be a lot of that is due to the World Cup. So you know, what do you think the Nexon and/or the Tencent team are doing right, you know to properly monetize the World Cup, and I think you know the recent €“ I guess, shall we say the last four to eight years, we have not had sort of an equivalent amount of growth in FIFA around the World Cup.

So I’m just wondering if there are some learnings or best practices that you can export out of Korea and China into the western world €“ the World Cup. Thanks.

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