EA Investor Conference Call Notes: No more NCAA Basketball? - RaychelSnr's Blog

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EA Investor Conference Call Notes: No more NCAA Basketball? Stuck

Posted on February 8, 2010 at 06:17 PM.

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I just checked out of the conference call, and while they were still taking questions, I unfortunately have to move on to other things. Here are a few notes from the investors conference call. Some interesting tidbits were mentioned in regards to sports:

EA's focus of fewer and bigger titles was heavily drummed during the call.
EA officially confirmed what was suspected and all but confirmed for quite awhile: EA Sports Active is coming to the PS3 and 360.
FIFA sold over 7 million copies in the quarter and Madden sold 2.3. FIFA is easily EA's biggest cash cow at this point.
Digital content is growing rapidly, EA is expecting 30% revenues growth in the year.
It was mentioned the R&D budget is less for sports franchises than other franchises due to their annual nature.
EA is expecting DLC to grow 100% in the next fiscal year.
While EA's packaged goods business is profitable, digital content is even more so profitable. It was hinted that EA was going to be more aggressive in the digital gaming market, which is no surprise.
Jon Riccitiello mentioned he wanted more innovation in the sports titles, especially NBA Live where they continue to trail the competition.
EA Sports titles earnings were up significantly from FY 09 to FY 10
There was absolutely no mention of an NCAA Basketball title for next year either in the investor report or in the conference call up to the point I checked out. This is not a good sign for what is easily EA's least profitable yearly sports title. To say the game is cancelled at this point might be a bit much, since EA does own exclusive college basketball rights which would likely require a yearly release of the franchise. However, the signs are there and at the very least, NCAA Basketball 11 (if there is one) will be nothing more than a small roster update and a minor upgrade gameplay wise given the lack of a mention by EA today.

Meanwhile, investors completely disowned EA, as EA's stock dropped by as much as 10% in after hours trading before settling around 8.5% down. EA's forecast for the rest of this year was, as they said, 'admittedly conservative'. Don't look for any major changes or major new titles anytime soon folks, as EA's survival of the fittest mantra for it's gaming titles continues to take hold through the next couple of years.

Comments

# 1 Valdarez @ Feb 10

Why would R&D be less for games with an annual release cycle? If anything, it should be more since the games have a yearly influx of revenue / cash. Just shows the company is looking to milk their products instead of improving them. *sigh*

# 2 videlsports @ Feb 10

Good Reporting Chris. During this point I do not like anyone losing their Jobs, even if it is just reports. EA tries to buy every liscense and try to buy out the comp. Well this backfiring on them big time. All the ncaa and the NFL needs to learn that competitvieness is good for growth. If your games have good quality,you should not worry, because fans will always buy.Hope the ncaa deal voids, then 2k can make football and basketball too.