There may be an economic recovery in the works, but video game giant Electronic Arts has a way to go before it joins the party.
That seemed to be the message Tuesday, when EA reported its first-quarter results, the highlights of which were mixed: On the one hand, it reported a quarterly net loss of $234 million, or 72 cents a share, compared with a loss of $95 million, or 30 cents a share, for the same quarter a year earlier. But on the other hand, its big summer release, The Sims 3, appears to have gotten off to a great start, moving an impressive 3.7 million copies since its June 2 launch.
For the quarter, EA said it brought in $644 million in net revenue, down 20 percent, compared with $804 million a year earlier.
The quick start for The Sims 3 isn't surprising since it is part of one of the best-selling video game franchises in history, and because the game in June set a company record for first-week sales of a PC game.
EA also touted the performance of games like EA Sports Active and Fight Night Round 4, which it said also drove sales for the quarter.
Still, despite strong results for games like The Sims 3 and EA Sports Active, EA has to deal with the reality that its business is struggling in the face of the economy. Of course, it's hardly alone. During June, industry sales across the board were down 31 percent from the same period a year earlier.
Sims players will soon be able to journey to countries such as China and Egypt, search for hidden treasures, and meet fellow Sims along the way.
Electronic Arts announced Monday that it's developing the first expansion pack for its popular Sims 3 game. The new pack, Sims 3 World Adventures, will take players on a journey to real-world locales, says EA, from ancient tombs in Egypt to romantic getaways in France. While trekking across the globe, players can take on new challenges, develop different skills, and interact with other Sims.
"We're thrilled with the global success of The Sims 3 over these last few months and are looking forward to expanding on the gameplay experience with one of the most robust expansion packs to The Sims yet," said Scott Evans, General Manager of The Sims at EA.
Designed for the PC and Mac, the Sims 3 Expansion Pack will hit store shelves the week of November 16, says EA. A portable version for Apple's iPhone and iPod Touch will be out early next year.
Since its release in early June, Sims 3 has been a hot product. The game sold 1.9 million copies in its first week alone, making it EA's best PC game launch ever.
The Sims 3 sold more than 1.4 million copies in its first week, making it the fastest-selling PC game launch in Electronic Arts history.
(Credit: Electronic Arts)Electronic Arts may get criticized in the press for its reliance on long-running franchises, but if the record first-week sales of The Sims 3 are any indication, gamers aren't concerned with such matters.
The game giant reported Tuesday that The Sims 3, the latest full iteration of the storied Sims franchise, sold 1.4 million copies in the first week following its June 2 release. That made it, according to EA, the best launch of a PC game in the company's history.
In the newest version, as in the previous iterations, players can create sims--lifelike simulated people with unique personalities--and control their lives while trying to keep them happy and alive. The new game also allows players to create and edit videos they make in the game.
For any new Sims title to set such records is particularly noteworthy, given that the original version of The Sims, released in 2000, quickly became the best-selling PC game of all time. Further, the games and the many expansions released over the years have sold more than 100 million copies.
In addition, the iPhone version of The Sims 3, which costs $10 on Apple's App Store, rose to the top spot among paid applications.
All of this goes to show that just when you think a franchise may have reached its limits, gamers make it clear that they have their own ideas about things. And for that, EA is smiling all the way to the bank.
'The Sims 3' launches officially on June 2.
(Credit: Electronic Arts)LOS ANGELES--Start saving simoleans, everyone: "The Sims 3" has finally launched.
The latest full iteration of the famous "Sims" franchise--"The Sims" launched in 2000 and became the best-selling PC game of all time, and "The Sims 2" released in 2004--the new game presents a chance for its publisher, Electronic Arts, to bolster its bottom line, even while trying to push the boundaries of what game players are used to.
The original "Sims," from the hit-making game designer, Will Wright, was a game in which players could control a household of, yes, "sims," little people whose daily lives depended on players' attention. The innovations in the game, plus its non-goal-oriented nature, its unique graphics, its ahead-of-its-time game play and a number of other factors quickly made it into a success far beyond what anyone could have imagined. It also spawned a series of expansions that were also successes.
Then came "Sims 2," which improved upon the original title's graphics, incorporated more user-generated content--players could now use a movie feature that allowed players to script and make films starring their sims, while players of the original version figured out a way to do so themselves using the game's "family album" feature--and also spawned a series of hit expansions.
As a result, EA spun "The Sims" off its original studio, Maxis, and turned it into one of the company's main labels. And now, with the release of "Sims 3," EA has both a chance to prove it can continue to maintain its most popular and lucrative franchises, and to win over a new generation of players unfamiliar with the little green diamond that floats over players' characters' heads.
But EA has had a series of layoffs, its much-anticipated "Spore" franchise, which moderately successful, has not been the mega-hit the company likely hoped it would be and it is facing an environment in which the games industry, while still stronger than most, is finally starting to show some cracks.
So how important is "Sims 3" to EA? Well, it's not bet-the-house important--no game could be to such a large company--but it's certainly got to be up there.
And now, as the latest iteration incorporates even more social media, and more user-generated content--players can now not only make films starring their sims, but can also have full editing control over the footage--EA has to deliver with bottom line figures. Will it? Only time will tell. But there's certainly a lot of excitement around the game. And given the franchise's history, it would be tough to bet against them.
Update at 2:58 p.m. PDT: Launch date for The Sims 3 corrected.
Apple is using its retail stores to demo one of the most anticipated games on the Mac in recent memory, The Sims 3.
(Credit:
Electronic Arts)
The Electronic Arts game doesn't go on sale until June 2, but Apple stores are offering a sneak peek. The game is running on every Mac in the store, so you can try out a few of the features before you buy it.
The Sims 3 gives you tools like "Create a Sim" to customize your Sim more than ever before. You can change facial features, hair color, eye color, and determine the body shape of your Sim.
Another feature, "Create a Style" allows you to customize everything from your Sim's clothing to its furniture.
EA's 'The Sims 3' is scheduled for a June 2 release on the PC. Versions for the Mac, iPhone and iPod Touch will come later in the summer.
(Credit: Electronic Arts)Electronic Arts said on Tuesday that The Sims 3, the third full iteration of one of the most successful video game franchises of all time, will hit store shelves on June 2.
The game will be released for PCs first, and versions for the Mac, iPhone, and iPod Touch should come later in the summer, EA said.
The original version of The Sims, which launched in 2000, quickly became the best-selling PC game of all time. In the years since, the franchise has surpassed 100 million total units sold, counting The Sims 2 and all of the expansions for both full iterations.
Originally developed by legendary game designer Will Wright's Maxis studio--which is now focused on Spore--The Sims has since become its own division within EA. As such, it is run out of the company's Redwood Shores, Calif., headquarters, while Maxis is based in Emeryville, Calif.
On Tuesday, EA also announced its third-quarter earnings and said it would be laying off about 1,100 employees--about 11 percent of its total staff--and closing 12 facilities worldwide.
- prev
- 1
- next
