Advertisement

Transition To A Digital Economy: Half Of EA’s Sales Are Digital

The exciting news comes in, and what we hear is that almost half of EA’s units that were sold in the first quarter of 2019, were sold digitally.

Electronic Arts or EA Sports launched its digital game subscription service on PlayStation 4. Digital access means that a plethora of EA games is brought to the console with EA Access PS4. This subscription may not form a part of EA’s digital sales numbers, but EA Access forms a solid example of the industry’s move to digital and service-based sales models.

Our facts and data come from GamesIndustry.biz, according to which 47% of EA’s total unit sales in Q1 2020 were digital, if we take that into account, that is a 7% increase from digital sales in Q1 2019. This figure amounts to $3.73 billion in digital net bookings within the past 12 months, and an overall increase of 5% year-over-year, according to EA itself.

EA Sports Goes Digital
EA Sports: Transition To Digital Economy

As far as EA’s digital net bookings are concerned, they make the majority of its sales in the past 12 months. About 76% of its total net bookings that is. EA’s net bookings for Q1 2020 are $743 million, less by $749 million in Q1 2019. This drop-in net booking is due to the fact that A Way Out released in Q1 2019, and the FIFA 18 World Cup was around Q1 2019.

In 2019, EA’s net revenues rose from $1.1 billion in Q1 2019 to $1.2 billion in Q1 2020, and EA’s net income was $1.4 billion, but this would also include a $1.1 billion income tax benefit EA received during Q1 2020.

These facts represent the gaming industry transition to a digital world. The gaming community has time and again reiterated the need for digital game downloads. Google Stadia is one service that plans to do away with downloads and shifting the gaming into a cloud-based future.

We just hope other companies follow suit like EA.