Its raining money at Electronic Arts as the video game company revealed that they profited with almost $1 Billion thanks to microtransactions. The video gaming juggernaut is notorious for its microtransactions in almost all of its games.
Earlier today, Electronic Arts reported its earnings for the fiscal year of 2020. The video game company performed monumentally well and exceeded expectations, financially.
After looking at the official report, it would not be wrong to say that microtransactions have proven to be a boon for Electronic Arts. The earnings went up to $993 million from live services while the company made $2.835 billion from Microtransactions in one year.
Electronic Arts managed to make $1.593 billion for its quarterly revenue. It made $361 million in profit. We can safely say that EA’s love for microtransactions has certainly paid them well. That’s not to say that their games were lackluster. Games like Madden NFL 20, Apex Legends and Star Wars Jedi: Fallen Order certainly proved to be a part of their biggest achievements.
Star Wars Jedi: Fallen Order was the highlight as it sold 10 million copies. This is considerably more than the expected sales of 6-8 million copies. Electronic Arts did attribute part of the success of Fallen Order, to the ongoing Star Wars Movie Franchise. The recent release of Rise of the Skywalker certainly helped.
Another top performer was Apex Legends. The game saw a substantial improvement in the player count after the release of Season 3. EA hopes to carry on this momentum to the upcoming Season 4.
Electronic Arts also confirmed the release of a new Battlefield game on the Xbox Series X and Playstation 5.
Most of the Electronic Arts’ revenue came from games such as Madden, Fifa, and NHL which implemented microtransactions. This formula has earned Electronic Arts, a lot of criticism from critics and players alike. Star Wars Battlefront II is still plagued by the backlash it received due to microtransactions.
Luckily for them, they still churn out quality games which make most of the players overlook the microtransactions. If their recent earnings are anything to go by, Electronic Arts will not be abandoning microtransactions anytime soon.