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

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So how much of that roughly $500 million that I’m seeing is Star Wars versus FX impact versus the PC console titles that you think might be softer in Q4. And especially on FX, it looks like the British Pound and the Euro are up about 10 points versus when you guided in November, which would suggest that FX impacts should have been positive. Thanks.

Chris Suh: Okay, got it. I think I followed all your numbers Omar, so let me see if I could help. So I think directionally if I followed your math, your math is sort of futs, if I could put it that way. The drivers for Q4 and consequently for the full year are in fact the exact drivers that I talked about previously, which is first and foremost the shift of Jedi from Q4 and into Q1 of FY ’24, that’s the most significant impact on the Q4 number. Secondly, as you pointed out, the performance in Q3 relative to our guidance, that’s the next one. And then by extension of that which Andrew asked as well earlier, which was what did we take in terms of learnings from Q3 and how are we applying the current macro environment and the current market conditions against what we know to be high quality launches in Q4, and that’s part of the equation as well into Q4.

And then the fourth one as you pointed out is the sun setting of Apex Mobile. So those are the four primary €“ I think you have the four primary drivers and that equates the revision in the guidance in Q4.

Omar Dessouky : Thanks a lot.

Operator: Your next question will come from the line of Benjamin Soff with Deutsche Bank. Please go ahead.

Benjamin Soff : Hey! Thanks guys. I was wondering if we could dig a little bit deeper into the trends that you’re seeing in Apex. And within that context, what’s your view on whether or not the industry is getting more competitive as a whole, in addition to the macro environment getting a little bit weaker. And then I just wanted to see what you guys thought about, you know whether or not this is a franchise we should expect to continue to grow in the future, you know given your early color for fiscal ’24. Thanks.

Andrew Wilson: Yeah, so I think that you know as we talked about in the prepared remarks, Apex is traditionally a little quieter in Q3 as the live service ebbs and flows with a launch slate of new titles around the holiday. I think this was a very strong launch holiday slate, including you know FIFA which performed very well during a World Cup, and certainly there were some competitive titles that were very strong €“ that had been very weak in prior years quite frankly. And so there was probably a little built up demand around some of those competitive titles. And so, while you know the franchise still performed incredibly well, just not quite as well as we had expected based on our projection of where the competitive landscape would be.

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