Electronic Arts Earnings and New Horizons in Social/Mobile Gaming

Electronic Arts is looking forward and betting on mobile and social gaming, and the timing couldn’t be better: the company posted its 11th consecutive loss, down $82 million for the quarter ending December 31st. Getting deep into the financials, the packaged goods games market has continued its decline quarter after quarter, and EA is predicting it will fall a further 3% in the coming year. These packaged goods are 80% of EA’s bottom line, and the change is hurting EA’s core business.