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Electronic Arts CEO on Taking Video Games Digital

Electronic Arts Headquarters, Redwood City, California
AP
Electronic Arts Headquarters, Redwood City, California

On strong growth of digital revenue, Electronic Arts reported strong earnings and beat expectations, sending its stock to a 52-week high. I sat down with CEO John Riccitiello in an exclusive interview about the company's strategy.

There's no question the packaged video game business is struggling — software sales dropped 16 percent in March according to NPD. But Riccitiello says that doesn't speak to the huge growth the industry is seeing — and EA is capitalizing on.

More than a quarter of EA's revenue in the past quarter came from digital platforms — Facebook games, mobile apps and downloads to PCs or game consoles, and that's up 18 percent from a year ago. This helped drive total revenue up 11 percent in the quarter.

And Riccitiello says this is just the beginning.

Physical software sales won't go away anytime soon, but the company is increasing becoming a digital entertainment company.

EA demonstrated its commitment to this in its acquisitions just this week of two mobile gaming studios, Firemint and Mobile Post Productions.

Riccitiello told me he's open to more acquisitions.

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