One of the most successful interactive entertainment software companies in the world is Eletronic Arts, but you might know them as their acronym, EA. This corporation specializes in all things electronic, from online services to creating games, and software for all kinds of different devices out there, including tablets, consoles, PCs, and mobile phones.
You will find its headquarters in Redwood City, California, but more than 300 million people are subscribed to its service worldwide. EA has divided its services into three different categories: Maxis, EA Mobile, and EA Studios.
The first division is dedicated to creating content related to games, as well as service that are going to enhance the user experience. The second category helps develop and launch interactive games for tablets and mobiles, and the third category develops and creates games that relate to other services out there.
The company was established back in 1982 by William M. Hawkins III and has since morphed into the powerhouse that it is today. It is responsible for coming up with many well-received brands, including The Sims, Dragon Age, and EA Sports Fifa.
Let’s talk a little bit about EA’s net worth.
The popular video game publisher has said that they had a really good year last year, as a result of their continued success with specific games like Apex Legends. In fact, this game is so popular that it is the fastest growing in the history of this corporation.
It is believed that more than 10 million people play the extremely popular game around the world. As a result, EA is reporting a current net worth of $42 billion.
This has increased since last year, which means that they are slated to continue doing really well. Being such a popular game franchise, it was one of the few that did really well in 2020 as a result of COVID and global lockdowns.
One issue that EA has faced has been the rise of free-to-play games on mobile, through apps.
How Does the Company Make Money?
EA has a huge net worth, and this might have left you wondering how they make their money. The company is primarily digital, which means that a lot of its services are centered around digital content distribution.
The thing about digital goods is that they are usually a lot cheaper to develop, as they don’t require the typical production costs of physical products. Additionally, because the company has huge digital distribution scope, it can sell its content a lot easier.
The majority of the revenue that EA receives every year comes from sales online. The main source of revenue for the company is consoles, which is what this company has been primarily focused on since it first got its start all those years ago.
When you break down its annual revenue into three categories, you’ve got mobile, live services, and game downloads. EA has also played the field wisely, which has resulted in a collaboration with Disney, where EA got the chance to begin distributing all Star Wars games.