EA hit target of $1 billion a year from digital revenue
Electornic Arts has finally accomplished its target of making a billion dollars (£650 million) from digital revenue in a single year. EA CEO John Riccitiello revealed the news in a leaked memo (via Kotaku).
“In the past year, EA evolved dramatically,” Riccitiello writes. “We’re more digital, more efficient, and more competitive in social and casual games.
“One year ago, we set a stretch goal to grow our digital business to $1 billion annually. I’m proud to say that we achieved that goal in calendar year 2011. Crossing the $1 billion threshold is an incredibly important milestone – congratulations!”
However, it’s probable that, in reaching the billion dollar target, EA has spent more than that. In JUly 2011 EA bought PopCap for roughly $750 million, a figure that may raise to $1.3 billion in targets are met over the next 18 months.
In addition, EA launched their Origin digital distribution service. The cost of the Origin store has not been revealed, but it will certainly not have been cheap.