Electronic Arts Inc. (NASDAQ:EA) Q2 2024 Earnings Call Transcript

And so we’re seeing far more consistent spend throughout the year because it’s not just about the connection to a season of football. It’s about a deep connection to the friends they share the love of that season of football with, and that love is 365 days a year. And so as we think about building this out both in the context of FC in the context of American football, in the context of our broader EA SPORTS portfolio and in the context of our other Giant IP, Apex, The Sims, Battlefield, you should expect that we will look to replicate this across the portfolio as we invest deeply in these opportunities to bring global communities of gamers together and give them opportunity to engage more deeply in the experiences they love and connect more meaningfully with their friends that they enjoy the experiences with.

Brian Fitzgerald: Thank you, Andrew. Appreciate it.

Katie Burke: Thank you. Operator, next question please.

Operator: Thank you. We’ll take our next question from Eric Sheridan with Goldman Sachs.

Eric Sheridan: Thank you so much. Maybe two questions, if I can. First, we continue to have a debate with investors about the recession resilience versus of gaming overall as an industry. I was curious what you’re seeing in terms of spending habits on the consumer side of the equation across your portfolio of IP and what it tells you in terms of resilience versus resistance to potential in consumer volatility from a spending side when you think about the interactive entertainment landscape, number one. And then number two, it’s really interesting to see the new user growth around the Madden franchise, where there’s been sort of a geographic component to that IP over time because of the sport itself. How do you think about building more audience scale and size in Madden over the long-term? What were some of the key learnings from this year, the job to take into future years? Thanks so much.

Andrew Wilson: Well, Eric, two great questions. I will try and cover them as best as I can and Stuart, please add details as we go. I think that when we think about recessionary predictions and the industry broadly, typically as an industry we have. I don’t want to say, be recession-proof, but we have been more resilient than many industries have been and that’s really because of two key things. One entertainment is a fundamental human need. It’s very important to us as a species. And two, the form of entertainment that we offer to our communities represents incredible value even where there is constrained spending. As we look at the market today and we look across our portfolio, I think it probably is pretty consistent with what we see across the industry, which is the big games where there is deep engagement and deep social connection continue to benefit across our portfolio.

And we are – but we do see different kind of spend patterns on a geo basis. There are some markets that are showing a little more softness than others relative to some of the growth that we’re seeing across the world. We’ve heard others speak to some of the softness in market in Europe. We’ve certainly seen some of that across our portfolio. But in aggregate, on a global basis, we’re seeing growth. As we think about Madden broadly, again, I just – I think we have been partners with the NFL for the best part of 30 years. Our teams work very, very closely with the NFL and the NFL Players Association and more importantly, NFL fans, football fans in this country and beyond the boundaries of this country. And the NFL is growing globally, and we see the NFL doing an incredible job of growing the sport and what our teams have been doing is building out again, thinking about these game experiences not just as one-off onetime experiences, but mechanisms to fulfill many motivations of sports fans and football fans.