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Star Wars Game to Put a Crimp in EA’s Margins image

Star Wars Game to Put a Crimp in EA’s Margins

Electronic Arts’ new Star Wars title will “put somewhat of a damper” on the game publisher’s gross margins this year owing to royalty payments, part of which will be offset by revenue from digital downloads and live services, CEO Andrew Wilson told analysts. EA will release the Star Wars game – tied to the new Star Wars: Episode VIII – The Last Jedi movie slated for release Dec. 17 – late this year.

Meanwhile, EA’s revenue from Ultimate Team modes for FIFA Soccer, Madden NFL Football and NHL labels will hit $800 million in the fiscal year ending March 31, up from $650 million a year earlier, CFO Blake Jorgensen said. About half that revenue is generated by extra digital content released to accompany the games, EA has said. The FIFA game, which was the first to include the Ultimate Team mode, is the top-seller of the three titles and will be launched for Nintendo’s new Switch videogames console, EA officials said.

Among its sports titles, EA has postponed the launch of its new NBA Live game to the fall from March, Wilson said. “We feel like we are better positioned to launch that with the fullness of the NBA season ahead of us, and have decided to double down on that,” Wilson said.

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