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How Electronic Arts Expects to Drive Revenue Growth

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Developing new gaming titles

During Electronic Arts’ (EA) fiscal 1Q18 earnings call, its CEO, Andrew Wilson, stated that the firm has three focus areas to drive long-term revenue growth. Electronic Arts aims to focus on a core technology base, development of new gaming titles, and new models intended to increase its user base and engagement.

According to EA’s management, the company’s investment in areas such as analytics, engine technology, research, and infrastructure have helped develop games that cater to its players’ requirements. 

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Wilson stated, “Our industry-leading Frostbite engine is now powering development of a dozen new titles across our portfolio. It is continually engineered alongside our world-class technology platform for games and services, enabling our creative teams to leverage sophisticated data and insights to conceptualize and build the most incredible new experiences for our players.”

EA is optimistic about its core digital platform technology, which provides multiplayer experiences and connects multiple players. As a result, player interaction increases, and the platform provides gaming updates based on customer input.

Research and development

EA has also increased its R&D (research and development) expenses from $294 million in fiscal 1Q17 to $325 million in fiscal 1Q18. R&D is important for gaming firms such as Take-Two Interactive (TTWO), EA, Activision (ATVI), and Zynga (ZNGA) to ensure their gaming portfolios meet player needs and requirements. EA has stated that its research team is working on neural networks to enhance its streaming experiences.

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