EA predicts $6 billion in revenue ... in three years

by Kyle Orland { Feb 13th 2008 at 6:00PM }

Looks like someone has an all-natural surge of confidence. Despite the potential of being knocked back to No. 2 status in the game publisher arena, EA is still predicting a robust $6 billion in revenue for fiscal 2011. To put that in context, that would be 15 percent of the $40 billion in revenue for the entire game industry in 2007.

EA's fiscal 2011 estimate is 53 percent higher than the estimated $3.9 billion the company will make in fiscal 2008 (which ends March 31) and 19 percent higher than the $4.9 billion stock analysts estimate they will make in fiscal 2011. The estimate includes $1.7 billion from EA Sports, $1 billion from online casual and mobile games, and
$0.9 billion from "digital revenue," (i.e. downloadable games and content).

EA shares were up 5.5 percent on the news, which we guess means that investors are confident in EA's rather bullish projections. Either that or they just don't know when they're being fed a lot of hot air. Take your pick.

Tags: EA, EA-casual, EA-sports, electronic-arts

Reader Comments (Page 1 of 1)

Count Noobula @ Feb 13th 2008 6:06PM

Share the wealth EA. Its called giving back to those that made you: US, the gamers.

bigsofty @ Feb 13th 2008 9:26PM

"$0.00" of that money is mine and will remain so, they've ruined the independent software industry!!!

Count Noobula @ Feb 13th 2008 11:01PM

Point well taken.

Hack @ Feb 13th 2008 6:14PM

Not sure why there is even a question about EA's potential here. EA's financial analysis, while aggressive, looks very reasonable, especially considering that it's in a "hits" based industry. EA's has reduced its risk by extending its major licenses agreements (e.g. Madden), which should provide even more stable cash flow in the future.

-Rob

Marty @ Feb 13th 2008 6:24PM

Only $6 billion? In 3 years, they'll own the entire market, so this seems like a very conservative estimate!

heckthor @ Feb 14th 2008 4:10AM

It seems plausible if People like you (i suppose by reading your comment) keep buying the same crappy sport games or paying for content already in the disc (DLC from XBOX Live)... so yeah, why not... (if you are not one to those people then im sorry but my comment still stands for all the others that do so)...