Stuart Canfield: Colin, with regard to your second question, we basically — in my prepared remarks, we framed up the range of growth we expect to see through 2026 and 2027. So range through that entire period. But we referenced it through the new non-GAAP operating margin disclosure we made and we are referencing expanding 150 to 200 basis points on the 25 platform that we just put out. So intent there is to demonstrate the growth acceleration in both 2026 to 2027, as we think about growth through driven by sort of growth in a core business from team expand player acquisition, engagement retention. We know the live services to Andrew’s answer on the call a second how we continue to expand both growth through the releases and our ongoing business.
The new IP we’ve talked to in the pipeline that continues to give us lever and growth on-top in the later years. And as we see leverage from the cost structure and investment all relates down to that non-GAAP operating margin expansion through 2026 and 2027.
Colin Sebastian: Okay. Thanks guys.
Operator: Thank you. Our next question comes from the line of Mike Hickey from Benchmark Company. Please go ahead.
Michael Hickey: Hey, Andrew, Stuart, Andrew, Katie, thanks for taking our questions. Andrew, you had some pretty interesting comments recently at a conference talking about sort of efficiency and expansion with AI. I think you gave one example where you’re talking about building out game environments like stadiums, you said that process went from six months to six weeks. So pretty incredible efficiency step-up. Just curious how you’re thinking about further deploying AI on other development processes, other games, other platforms like mobile. You talked about the duration of development on mobile, maybe there’s some efficiencies there. And then as a follow-up, just curious on the generative AI NPC in key franchises like sports, Battlefield, Sims, the opportunity you see there over-time? Thanks, guys.
Andrew Wilson: Yes, great question. First is, we’re still very early in the AI evolution or at least the generative AI evolution. As a company, we’ve been deeply tied to AI since our inception. It has been the very center of all of the games that we create replicating human intelligence in the context of a gameplay experience. But certainly as we think about the wave of generative AI today and as it merges into artificial general intelligence broadly, we’re still very early. But the things I talked about in the conference was really both two-fold. One, how do we get more efficient and the stat I used was we’ve moved from being able to create stadiums from six months-to six weeks. And my expectation is that will continue to shrink over time.
Maybe even more profound than that was we went from — when we build a game and we have animation and run cycles. So in FIFA 23, we had 36 run cycles, which gave you kind of believability of human performance inside of that game. When we launched FC 24, we had 1,200 run cycles. And so again, starting to add to the individuality and uniqueness of each player and delivering our players more immersion in the game, a more engaging experience that is more true to what they watch on television on a Sunday afternoon. And so, as we think about the first pillar of generative AI for us, we’re really looking at, how can it make us more efficient, how can it give our developers more power, how can it give them back more time and allow them to get to the fund more quickly.
When we think about that — our expectation is that there is meaningful opportunity for us. We’ve done analysis across all of our development processes. And right now, based on our early assessment, we believe that more than 50% of our development processes will be positively impacted by the advances in generative AI. And we’ve got teams across the company really looking to execute against that. And the second phase for us, of course, is how do we further expand our games, how do we build bigger worlds with more characters and more interesting storylines. And if efficiency starts to really take place over the next one to three years, our expectation is that over a three to five-year time horizon, we will be able to as part of our massive online communities and blockbuster storytelling, build bigger, more immersive worlds that engage more players uniquely around the world.
And we think about that on a three to five-year time horizon. And perhaps on a five-year plus time horizon, we think about how do we take all of those tools we create and offer those to the community at large so that we can actually get new and interesting and innovative and different types of game experiences. Again, not to replace what we do, but to augment, enhance, extend, expand the nature of what interactive entertainment can be and much the way YouTube did for traditional film and television. One of the great advantages, of course, that we have is we do have 40 years of data. And so as I think about efficiency over one to three years, expansion over three to five years transformation on a five year time horizon, it’s actually very plausible that with 40 years of owned data that we have to feed into these models, we actually may be able to accelerate that timeframe.
And I would tell you there is a real hunger amongst our developers to get to this as quickly as possible, because again, the holy grail for us is to build bigger, more innovative, more creative, more fun games more quickly so that we can entertain more people around the world on a global basis at a faster rate.
Michael Hickey: Thank you.
Andrew Uerkwitz: Operator, we have one more question.
Operator: Thank you, sir. Our final question comes from the line of Eric Sheridan of Goldman Sachs. Please go ahead.
Eric Sheridan: Thanks so much for taking the questions. Maybe two parter, if I can to Andrew. From a big picture standpoint, if you take a step back, I’d love to get your take on two themes we continue to hear about across the gaming landscape. One, the market opportunity for more dynamic ad insertion across more traditional AAA games across different formats and how you think that might be a revenue opportunity over the medium to long term? And the second, we’ve seen some fairly successful examples recently of IT adaptation out of the gaming landscape into the broader media landscape. What’s your current thinking about that IT adaptation landscape going forward and what that might sit as a market opportunity for EA? Thank you.
