“If we can get two to three million people playing the game, you then start to transition from getting your money upfront, if you will, by selling the game to an ARPU — average revenue per user model,” Moore said. “That is the long-term growth plan and we are very optimistic that will work.”
Electronic Arts didn’t launch a single packaged goods game in the most recent quarter— two thirds of the game company’s revenue was from digital offerings. The company reported slightly better than expected earnings — a loss of 41 cents per share — and announced a $500 million share repurchase.
But the real headline was the company’s ongoing investment in all sorts of digital games—mobile, social, online, and digital downloads and downloadable content.
However, Zynga’s disappointing results call into question the future of social gaming, raising major concerns about slowing growth. Moore noted that EA still sees social games as a growing profitable sector, even if growth is slowing. He also made a point of distinguishing EA’s strategy from Zynga’s.
“We are investing in brands in social and I think that’s the difference. … We are a lot more diversified and we have the portfolio brand that consumers recognize around the world,” he concluded.
-By CNBC's Julia Boorstin
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