EA sees strong decline in sales of games for Xbox 360 and PS3

Electronic Arts received much less revenue from Xbox 360 and Playstation 3 game sales in the last quarter of 2013 than the company expected. EA already assumed a drop in sales due to the arrival of the PS4 and Xbox One.

Compared to the same period last year, EA’s titles for the established generation of consoles have sold 35 percent less. “Sales for the current generation have fallen faster than we expected,” Blake Jorgesen, EA’s chief financial officer, said in an announcement of the quarterly results. This is probably due to the arrival of the new generation of consoles.

EA is doing good business when it comes to next-gen consoles. While Activision’s Call of Duty: Ghosts topped the list of best-selling next-gen games during the holiday season, EA had three games on that same list. That’s Battlefield 4, Madden NFL 25 and Fifa 14. Collectively, EA’s next-gen games brought in more than they had predicted. One of the most notable sources of revenue for EA in the last quarter of last year is The Simpsons: Tapped Out. The mobile game grossed more than $130 million in the last three months of 2013.

EA posted revenue of $808 million for the last quarter of 2013, resulting in a net loss of $308 million. EA expects to hit $1 billion in revenue in the first quarter of 2014, with a profit of $230 million.