Electronic Arts, creators of The Sims, the Mass Effect franchise, several EA Sports titles and the upcoming Star Wars Battlefront video game, are now making most of their money from game add-ons and digital gaming services. Online video game services and add-ons -- which can take the form of downloadable content (DLC) -- accounted for a whopping 77% of the $693 million in revenue EA made during the first-quarter.
Since the majority of EA's revenue now comes from digitally distributed products, the company no longer needs to invest as much in manufacturing or shipping video games. Thanks in part to the reduced costs, EA had a 32% rise in profits over last year, earning them $442 million.
Online video game services like Ultimate Team, which let you create your dream soccer team and compete with FIFA 15 gamers, contributed immensely to EA's profits. Online video game services are more important than ever; EA doesn’t deliver as many video games every year as they used to.
EA is already hyping up the November release of Star Wars Battlefront, which analysts expect will sell over 10 million copies. EA's rise in share value -- which saw a high of $74.79 last week -- is thanks to the excitement around Star Wars Battlefront, said the company's financial chief Blake Jorgensen to the WSJ.
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