Electronic Arts Inc.
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield. The company markets and sells its games and services through digital distribution and retail channels; and directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
What does it do?
Electronic Arts (EA) is one of the biggest video game companies in the world. They make some of the most recognizable game franchises you've ever heard of — FIFA (now called EA FC), Madden NFL, The Sims, Apex Legends, and Battlefield. You buy one of their games, and you're likely also buying in-game currency, player card packs, or a monthly subscription to keep playing. They sell games on PlayStation, Xbox, PC, and mobile phones globally.
EA sits at the center of a gaming industry that now generates more revenue than Hollywood movies and music combined. With over 600 million registered players worldwide, EA has built an audience that rivals some of the largest media companies on earth. Right now, investors are watching whether EA can successfully shift from selling individual game copies to generating steady, recurring income — a model Wall Street rewards with much higher valuations.
How does it make money?
EA makes money in two main ways. First, they sell games outright — you pay $70 for Madden or EA FC and they pocket that revenue. Second, and more importantly, they sell 'live services' — ongoing in-game purchases like FIFA Ultimate Team card packs, Apex Legends cosmetics, and EA Play subscriptions. Live services are now their biggest earner and far more valuable because the money keeps coming in long after a game launches. Revenue grew from $7.4B to $8.0B in the latest year, suggesting the model is working.
Why do investors care?
The investment case for EA is essentially a bet on recurring revenue replacing one-time game sales. If EA can get more players hooked on subscriptions and in-game spending rather than just buying a disc once, profits become more predictable — and predictable profits are what investors pay a premium for. The wildcard is mobile gaming and potentially AI-generated content, which could dramatically cut development costs. What has to go right: EA FC and Madden stay culturally dominant, live services keep growing, and a new blockbuster IP (intellectual property — a new franchise) breaks through.
Deep Dive
MemberA full investor briefing on Electronic Arts Inc. — history, leadership, risks, and outlook.