EA records $454 million loss, despite sales of $3.6 billion in fiscal 2008

EA announced today that sales were way up this past fiscal year. Still, all those billions didn't stop the company from losing $454 million. While the publisher's revenues increased an amazing 19% to $3.7 billion, and EA saw its FY08 Q4 bring in $1.1 billion, the overall loss was a far cry from the company's $76 million in profit during FY07. Much of the loss can be attributed to EA's expensive tastes, which included the purchase of BioWare and Pandemic in FY08.

EA CEO John Riccitiello said that the company has felt "aggressive change" over the last year and was pleased with the revenue numbers (far more than Activision made in its FY08), which crowned EA as the undisputed, number one publisher in North America and Europe for the fiscal year. EA had 27 games reach the platinum mark in sales, 15 of which went double platinum. In the new fiscal year though, Riccitiello would definitely like to see some profit. The company, in giving guidance for FY09, predicts revenues between $4.9 and $5.15 billion. The EA Games label plans to release more than 20 titles, including 9 new IPs, in FY09.

[Via GameDaily]

Reader Comments (60)

YES, YES DIE!!!!

Preparing the torches.

Guess what guys!? I have a mess of pitchforks in my tool shed. $50.00 a prong.

Well I just saved 15% on my car insurance, thanks Geico.

Hey, Jack just announced that if you fill a customer survey you can unlock the prongs!

Well, at least we now know that aggressive change means loss of profits for EA.

Lawl.

Where exactly has the money gone... have they seriously spend $4 billion?

*spent

All of those CEO lunches in hawaii have finally caught up with them.

I suddenly understand the expression 'fat cats'. Thanks!

All the money was spent acquiring Bioware and Pandemic studios.

While the sleeping giant is wounded, now would be an excellent to hit them where it hurts financially.

Yes go out of business please

Yeah! So the corporate fatcats can get golden parachutes as everyone else gets FIRED! Woo! Who cares about people getting laid off?

As if you care, Jonah. You've got porn to fall back on (or your dick to fall forwards on).

So... they're down $454M, but they took out a $1B loan to buy Take 2 to up their $2B offer?

Investors at Take 2: Run away. FAR away.

I take a management class and remember reading an article last month or was it two months ago. I think it was about their CFO resigning in the middle of the Take Two bid...maybe now we know why.

EA is good for The Sims and...Spore? And they've already butchered the Sims in the last 2 expansions...

Butchered? How?

Wait, wait, wait. Are you THE Nick?

The bugs and all the issues are just inexcusable at this point.

Be prepared for more rehashed titles with minimal investment and creativity.

You mean like madden?

i think that was what he was getting at.

Joystiq: Fix reply, please.

Now we know why EA was desperate to buy Take 2 BEFORE Grand Theft Auto IV came out.

Madden, Tiger Woods, Nascar, shall I keep going?

Exclusivity is expensive isn't it EA?

Monopolies don't lose money like this.

MS' gaming department would like to differ.

MS isn't a monopoly in the gaming market.

wouldnt these numbers also include the $$$ spent on buying Pandemic and Bioware? I dont remember what that numbewr is, but it was big, that probably hurt there bottom line as well

Yes it is included and they cost $800 million.

*Grabs a pitchfork*

sorry, tried to reply to abs

This is the one story bleu could post a comment on and not look like a complete idiot.

Its all Madden's fault >:(

Now see, Fifa was actually making them money :) lol

Ha ha

/nelson

Well, their ability to bully a TakeTwo takeover just diminished

Thank you, recessive market!

only an idiot can claim a half-billion dollar loss as a triumph. Fuzzy math to the rescue.

"half-MILLION dollar loss"

fuzzy reading skills to the rescue.

Sorry, I just had to write that :P

It was half a billion.

454 million is just shy of half a billion. Fuzzy reading skills to the rescue indeed.

Turns out I'm the one with the shit reading skills after all...

eh ftl

Just for that, I will give you fuzzy love.

That loss is due to one time charges, like purchases of bioware etc. Without the one-time charges, they made over 300 million or 37% more than last year.

Also they had 27 one-million-sellers and 15 two-million-sellers in the year.

And they have over 2 bln in cash on hand to take two or three or whatever they want really.

There stock is way up.

So they are not going to die. Sorry.

Ok...but they still lost the money and may not be able to bounce back to the way they were before they lost it on buying other "one-time" charges.

You guys seem to have no fucking clue about how business works do ya?

Sometimes you lose, sometimes you gain and the key is to have enough money to be a able to afford a loss/bad period.

They might me loosing THIS YEAR due to all the loans as well as Pandemic & Bioware combo, but once they finally buy T2, they'll profit again in 2009.

I wouldn't exactly call it "going out of business" and if you're going to write something like "DIE! DIE! DIE!", you might as well shut the fuck up.

It might not signal EA going out of business, but this is the internet: home of hyperbole and wild exaggeration.

The loss doesn't exactly incite shareholders to wet themselves with confidence, either.

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EA records $454 million loss, despite sales of $3.6 billion in fiscal 2008

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