Electronic Arts (EA) Q3 FY25 earnings call: guidance and Q&A

What were the drivers behind the slower-than-anticipated acquisition for EA Sports FC 25, considering market structure, console transitions, or community feedback?

Management stated that while FC 25 is still expected to be the second biggest in franchise history, slower acquisition was partly due to many players being satisfied with prior iterations (especially after two World Cups and the brand launch). Gameplay tuning issues for a competitive cohort (too defensive) were addressed with a January 16 update, leading to a strong rebound in engagement and bookings.

“As we look at the top of the funnel, again, we had over 40 million people playing across iterations and I think we had an exceptional game in '23 with 2 World Cups and the December World Cup in the year, which brought in a lot of new players. We then had the launch of our owned brand, EA Sports FC that we invested meaningfully behind at a marketing level to bring in new players. And at some level, I think that many of those players were very satisfied with the games that we're playing.”

asked by Andrew Marok · answered by Andrew Wilson

How has the community reception to the Battlefield Labs announcement been, and how do past Battlefield releases inform this pre-launch cycle?

The response to Battlefield Labs has been overwhelmingly positive, exceeding expectations. This approach addresses community trepidation from past Battlefield iterations and allows the biggest Battlefield ever to be tested and tuned extensively with community involvement to ensure a stable and secure launch.

“I would say the response to the play test and the Battlefield Labs initiative has been overwhelmingly positive and well beyond our expectations, which is great. It's demonstrative of just the fan love out there for this story franchise.”

asked by Andrew Marok · answered by Andrew Wilson

Can you provide an update on Apex Legends' progress, what initiatives have worked, and the future strategy for the franchise?

Management outlined a three-vector strategy: 1) ongoing support for the current community (quality of life, anti-cheat, new content) with some progress. 2) A more meaningful broad game update planned post-Battlefield launch. 3) A longer-term vision for an 'Apex 2.0' to significantly expand the franchise, as Apex is expected to be a long-lasting franchise.

“As we think about Apex today, I really think about the development happening across 3 core vectors. The first is how do we continue to support this incredible community that plays the game day in and day out, which numbers tens of million of people... The second phase... is we do believe there will be a time where we need to do a more meaningful update of Apex as a broad game experience... And then on a longer-term time horizon... there will be an even bigger, more meaningful update to that broader game experience and Apex 2.0, if you will.”

asked by Douglas Creutz · answered by Andrew Wilson

How does the crowded industry pipeline influence EA's willingness to launch Battlefield, and could the launch timing shift?

EA has invested significantly in Battlefield, aiming for an FY26 launch. While confident in the game, if the market window isn't optimal for player acquisition due to competition, they would consider an alternate launch timing. The multi-year financial framework provides flexibility for such decisions.

“We have an FY '26 launch window that the team is targeting. We believe the game will be great and REIT at that time. But if we got close to that time frame and believe that this wasn't going to be a great window for us, then we would take a look at what an alternate window might be that would give us the appropriate time, energy and player acquisition opportunity for this battlefield to be all that it needed to be.”

asked by Christopher Schoell · answered by Andrew Wilson

What opportunities might a new Nintendo Switch console present for EA's IP and collaboration?

New consoles benefit EA by providing access to new players and communities. Franchises like FC and Madden typically perform well on Nintendo platforms. The MySims: Cozy Bundle on Switch saw over 50% new players, indicating a strong opportunity for EA's IP on new hardware.

“Any time a new console comes into the marketplace, that's of a benefit to us. It gives us the ability to access and acquire new players. Typically, we've had franchises performed very well on Nintendo platforms.”

asked by Christopher Schoell · answered by Andrew Wilson

How did the introduction of the 'Rush' mode in FC play a role in the Q3 trends, and how do you see it evolving?

Management clarified that 'Rush' is the second most played mode in FC and permeates many aspects of the game without diluting monetization. They believe it's a net positive for the franchise, advancing fast-paced, socially-driven gameplay. The Q3 softness was attributed to acquisition and gameplay balancing, not the 'Rush' mode.

“Rush actually permeated many different aspects of the game. It turns out it's the second most played mode in the game, and it actually hasn't been diluted to monetization. Overall, we believe that ultimately, it will be additive to monetization.”

asked by Clayton Griffin · answered by Andrew Wilson

Can EA achieve FY26 growth without Battlefield, and how do you view the ability to grow College Football and the overall American Football ecosystem in FY26?

EA expects to grow in FY26 even without Battlefield, driven by FC rebound, College Football 26, SCAPE, Sims expansion, and live services. College Football, while benefiting from pent-up demand, also gains from 12,000 athletes as ambassadors and the growing sport itself. The American Football ecosystem, combining college and NFL, is expected to continue growing year-over-year.

“Yes, in short, we expect the growth in to be part of the broader pipeline initiative, which obviously includes Battlefield and even would exclude Battlefield.”

asked by Michael Hickey · answered by Stuart Canfield