December 16, Gaming-Reporter.news
REDWOOD CITY, Calif. — Electronic Arts Inc. (Nasdaq:EA) raised its full‑year guidance after reporting stronger‑than‑expected revenue from live services, underscoring the growing importance of recurring income streams in the video game sector.
The company said net bookings rose 12 percent year‑over‑year, driven by continued engagement in its FIFA and Madden franchises, alongside Apex Legends. Live services now account for more than 70 percent of EA’s total revenue, reflecting a structural shift in the industry toward subscription and microtransaction models.
Shares of EA climbed 6 percent in after‑hours trading following the announcement, extending a rally that has pushed the stock to its highest level in two years. Analysts note that investors are rewarding publishers who can demonstrate predictable cash flows in an otherwise hit‑driven business.
Chief executive Andrew Wilson emphasized that EA’s strategy is to build long‑term player networks rather than rely solely on new releases. “Our focus is on sustained engagement and delivering value across platforms,” he said.
Market observers say EA’s performance highlights how publicly traded video game companies are increasingly judged on their ability to monetize existing franchises. The company’s trajectory suggests that investors are prioritizing recurring revenue models over one‑time sales.
