Electronic Arts Inc. (NASDAQ:EA) Q3 2023 Earnings Call Transcript

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And so as we think about what the teams have been able to do, we expect that that will continue to drive more growth for us over time. The third one is football more broadly, and if you really track what’s going on in the world, football in every part of the world is growing. It was growing before the World Cup, and it’s certainly growing post the World Cup. Premier league, La Liga, League One, MLS, all these leagues are growing in popularity globally, and if you look at what happened for us, we nearly doubled our units in North America FIFA. That represents a significant opportunity for us in this incredibly sports hungry market. And so if you take those three things and then you roll that into EA Sports FC that we will launch later this year, where we have significantly more control over the nature of the experience and the things that we can do for fans, we can work more closely together with our partners at a league level, at a team level, at a player level.

We think that well beyond this World Cup and certainly through many World Cups to come, the growth in football for us represents an extraordinary opportunity.

Stephen Ju : Thank you.

Operator: Your next question will come from the line of Omar Dessouky with Bank of America. Please go ahead.

Omar Dessouky : Hey guys! How are you doing? In the past you’ve given high level assumptions as to your expectations for the growth of the PC and console videogame software market, and I was wondering if you have assumptions for 2023 as to how much they might grow?

A – Andrew Wilson: I don’t know that we have given direct assumptions on those markets in time. We may have represented some market data that had been shared with us over time. We don’t have anything to share specifically at this moment, other than what I would say is what we’re hearing from our partners, particularly in console, is that a lot of the constraints around their ability to get product to market is pretty much behind us, and that we should expect a fairly strong console supply in the coming quarter and the quarters through the rest of this year. So that represents a great opportunity for us. We don’t yet know how to quantify that. We know that we’ve been selling into what has been a relatively constrained console market.

The demand is incredibly high. The good news for us as we continue to launch quality software and you combine that with what we believe, we’ll be unconstrained supply of consoles. We think that positions us well in the coming year with respect to our core HD market.

Omar Dessouky : Okay, thank you. And for Chris, so if I just look at the full year guide of around maybe midpoint about $7.1 billion and about $7.750 billion, which is the guide you guys gave last quarter, I see a difference of 650. If I were to subtract this quarter you know versus your guide and you know I would get about $500,000 or $1 million of push out. You know that €“ and of course the Apex Legend. So if I subtract 130 for the under performance in the quarter, and then let’s say 20 or so for under performance or cancellation of Apex Legends or sun setting of Apex Legends, I get about $500 million left and obviously that $500 million subtraction is not entirely Star Wars. So I was wondering if you could break that down for us.

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