EA has revealed that its Ultimate Team business now contributes $800 million in net revenue annually, which is up more than 20% year-on-year.
As you may remember, last year EA CFO Blake Jorgensen revealed at the Morgan Stanley conference that Ultimate Team revenue had reached $650 million, which was around half of all the money EA made from extra game content that year.
For those that don’t know, Ultimate Team started out as a mode in FIFA, and has since been implemented in EA’s other sports franchise such as Madden.
Alongside revealing Ultimate Team’s jump in revenue, Jorgensen at the same conference (but this year), said that the “real opportunity” is finding ways to bring a similar feature/business model to other franchise. According to the CFO, EA spends a lot of time thinking about bringing a similar mechanic to IP such as, Battlefield, Battlefront, and its Star Wars game.
Jorgensen continued by stating that while you won’t see such additions “tomorrow,” you will start to see a lot more of it in EA’s portfolio in the next couple of years.
Expanding the Ultimate Team mechanic is particularly attractive to EA, because of the “nice margins” that come along with digital business. According to Jorgensen, EA expects full-game downloads to be digital 50% or more within five years, however, markets with lower bandwidth and access to credit make it difficult to predict exactly.