fy-2014
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Capcom drops sales forecasts ahead of year-end results
Capcom revised its consolidated earnings forecast for the fiscal year ending on March 31, lowering its net sales expectations from 80,000 million yen ($673 million) to 65,000 million yen ($547 million). The change represents an 18.75 percent decline, which Capcom said is "primarily due to the severe impact on pachislo machine sales," thanks to "the delay in the introduction of a new model." Capcom added that "delays in the launches of some midrange titles in the Digital Contents business" also impacted its projections. While the publisher did not specify what previously-delayed digital games were the culprit, it did push back the beta for its online RPG Deep Down (seen above) to 2015 back in late August. Capcom also delayed the Japanese launch of Breath of Fire 6: Guardians of the White Dragons to this coming spring as of late July. [Image: Capcom]
Ubisoft beats Q2 projections, reports digital revenue surge
Ubisoft revealed today that it earned 124.1 million euros (approximately $156.6 million) in revenue during the second fiscal quarter of 2014 ending September 30, marking a decrease of nearly 43 percent compared to the €217.7 million ($274.8 million) earned in the same quarter last year. The report beats projected quarterly revenue of €85.0 million, however, and represents a sharp rise in sales for the first half of 2014-15. Ubisoft earned a total of €484.2 million in revenue during the first half of 2014-15, putting it far ahead of the €293.3 million reported during first-half 2013-14. The company attributes its gains to continued sales of Watch Dogs and other flagship releases. "The very strong momentum we saw at the beginning of the fiscal year carried on into the second quarter and enabled us to once again exceed our performance expectations," Ubisoft CEO Yves Guillemot said. "Ubisoft continued to capitalize on the popularity of new consoles, the successful launch of Watch Dogs, the quality of its back catalog and the considerable growth of the digital segment. Consequently, our operating income and cash flows improved significantly during the period." Ubisoft additionally reports a 90.4% increase in digital revenue for the first half of 2014-15, compared to last year's results. The company earned €113.7 million during the period from back-catalog sales, and reports €134.7 million in total digital revenue for first-half 2014-15.Reported sales by platform indicate that Ubisoft earned 21 percent of its quarterly revenue on the PlayStation 4, while Xbox One sales account for 9 percent. PlayStation 3 platform sales pulled in 19 percent, PC revenue clocks in at 17 percent, and Xbox 360 game sales earned 16 percent of Ubisoft's Q2 revenue. [Image: Ubisoft]
Ubisoft's digital sales jump 32% in fiscal 2014
Ubisoft reported digital sales of 195 million euros ($266.6 million) for the financial year ending March 31, 2014. That represents a 32 percent increase over last year's 148 million euros ($202.3 million) in sales for the segment, which includes digitally-distributed games as well as downloadable add-ons and items. Ubisoft specifically called out South Park: The Stick of Truth in its report, which showed "higher-than-expected digital distribution levels." The publisher said the digital segment was a "substantial contributor to our business," and accounted for 19 percent of the company's total sales for the year. Sales for 2014 were down 17 percent year-over-year to 1 billion euros ($1.4 billion). Ubisoft projects "strong digital growth" for fiscal 2015, expecting the digital segment to amount to 25 percent of the group's total revenues, including its free-to-play efforts for the year, according to the publisher's earnings presentation. [Image: Ubisoft]
Ubisoft sales down 20 percent from last year
Ubisoft failed to meet its projected earnings in fiscal year 2013-2014, with a loss of €49.3 million ($68 million), down from last year's profit of €69.2 million ($95 million). Ubisoft attributed its loss in part to operating costs, purchases, business acquisitions and sales of Gameloft shares. Ubisoft launched three major games in the "core" market in fiscal year 2013, and only two in 2014, leading to an 18 percent decrease (€758 million, $1 billion) in that segment's sales year-over-year. Gross profit for the year came in at €721.8 million ($986.9 million), down from last year's €913.5 million ($1.25 billion). Total sales in 2014 were €1 billion ($1.4 billion), down 17 percent at a constant exchange rate from 2013's €1.3 billion ($1.7 billion). Ubisoft CEO Yves Guillemot had the following to say about the year's report: "Although Ubisoft did not reach the targets announced a year ago for 2013-14, we did see a number of significant achievements during the period. Above all, we consistently achieved high quality across our games, notably for Assassin's Creed 4 Black Flag – the best-rated game of the Christmas season for PS4 and Xbox One – and for South Park: The Stick of Truth, which delivered a solid sales performance for Xbox 360, PS3 and PC."
NBA 2K Online reaches 19 million registered ballers in China
While Take-Two was busy counting its fat stacks of cash following its healthy fiscal 2014 financial report, it also noted milestones in its collaborative efforts overseas. Namely, CEO Strauss Zelnick revealed during the company's call with investors today that "usage and player engagement with NBA 2K Online continued to gain momentum, and it's now the number one PC online sports game in China with 19 million registered users." NBA 2K Online was announced in June 2009 as one of Take-Two's major pushes into the Asian market. Arriving in October 2012, the game is a free-to-play basketball simulation for PC that features every licensed NBA team. It is the result of a partnership between Take-Two and Tencent, a developer with experience in crafting free-to-play versions of popular properties suited for the Chinese market, including Monster Hunter Online for Capcom and FIFA Online 3 for EA. [Image: Tencent Games]
Take-Two makes it rain $1 billion more in fiscal 2014
Take-Two reported net revenue of $2.35 billion for fiscal 2014 (the year ending March 31, 2014), a 94 percent growth from its reported revenue of $1.21 billion in 2013. It also reported a net income of $361.7 million, which compares rather favorably to the net loss of $31.2 million it suffered last year. As of the end of fiscal 2014, Take-Two had "cash and cash equivalents of $935.4 million," plenty to make it rain a few times. As for the fourth quarter of fiscal 2014, Take-Two's net revenue was $195.2 million, a 34.8 percent decrease compared to the same quarter last year ($299.5 million). It also reported a net loss of $30.8 million for the quarter, which compares to the net gain of $21.2 million reported in Q4 2013. The publisher's digitally-delivered revenue increased 65 percent year-over-year to $435.1 million on a non-GAAP basis (Generally Accepted Accounting Principles). In its earnings call, Take-Two CEO Strauss Zelnick noted that Grand Theft Auto Online was the "single largest contributor" to the company's digital revenue growth. Take-Two also reported that it has shipped 33 million copies of GTA 5 to date. Looking ahead to the next fiscal year (ending March 31, 2015), Take-Two projects its non-GAAP net revenue to fall between $1.35 billion and $1.45 billion, and anticipates its net revenue between $120 million and $135 million for the next quarter, also on a non-GAAP basis.
Grand Theft Auto 5 ships 33 million units
That's a lot of violent, reckless criminals: Rockstar and Take-Two have shipped more than 33 million copies of Grand Theft Auto 5, Take-Two announced in its fiscal year 2014 report. "Grand Theft Auto 5 was the best-selling console video game of 2013 in North America, Latin America and Europe combined," the report says. "To date, Grand Theft Auto 5 has sold-in more than 33 million units." Sales of Grand Theft Auto 5 passed $1 billion in its first three days at retail. In March, Take-Two reported it shipped 32.5 million copies of Grand Theft Auto 5. [Image: Take-Two]
Capcom plans to sell 3.9 million more copies of Monster Hunter 4 Ultimate
Alongside Capcom's financial report for the 2013 fiscal year yesterday, in which it revealed an increase in net income by 15.9 percent year-over-year, it also offered some projections for the upcoming financial year (ending March 31, 2015). Given the continued success of its Monster Hunter brand, Capcom projected sales of Monster Hunter 4 Ultimate to reach 3.9 million units in North America, Europe, Japan and other Asian countries. The game will reach the west in early 2015. Additionally, Capcom reported that its strategy for mobile includes the launch of Monster Hunter Freedom Unite on iOS this month. The PSP game went free for PlayStation Plus users in March. Capcom also plans to launch another mobile game in the series this year called Monster Hunter Smart. The company noted strategies for PC in Japan and other parts of Asia, namely by introducing the beta phase of Monster Hunter Online as well as Breath of Fire 6 this summer. The latter was announced in August 2013 for PC, iOS and Android, whereas the former is the result of an April 2013 partnership between Capcom and Tencent to bring the free-to-play MMO to PC players in China. Lastly, Capcom mentioned plans to "develop titles exclusively for online games," specifically mentioning Deep Down for PS4, a free-to-play game first announced in September. [Image: Capcom]
Capcom sales up 8.6% thanks to Dead Rising, Monster Hunter
Capcom reported net sales of 102,200 million yen ($1 billion) for the fiscal year that ended March 31, an 8.6 percent increase over the previous year's sales. The publisher also announced a net income of 3,444 million yen ($33.8 million), which amounts to a 15.9 percent increase year-over-year. Capcom attributed some of its increased profits to its Monster Hunter 4 sales in Japan as well as that of Dead Rising 3 for Xbox One. It shipped over four million copies of Monster Hunter 4 as of December, as well as one million copies of Dead Rising 3 by the end of 2013. The publisher also reported a 1.5 percent increase year-over-year in operating income to 10,299 million yen ($101 million) as well as an ordinary income of 10,946 million yen ($107 million) for the year. For the next fiscal year, ending March 31, 2015, Capcom projects net sales of 80,000 million yen ($786 million) and an operating income of 10,500 million yen ($103 million). [Image: Capcom]
EA's Ultimate Team card sales grew 60% in the last year
Sales for EA's Ultimate Team modes in FIFA, Madden and NHL grew 60 percent year-over-year on a non-GAAP basis (Generally Accepted Accounting Principles), the publisher noted in its 2014 financial earnings report. Additionally, EA said its Ultimate Team services "generated more than $380 million" in fiscal 2014, and that Madden Ultimate Team alone saw a 90 percent year-over-year growth. First debuting for NCAA Football 14 and NBA Live 14 last year, Ultimate Team is a trading card-collecting game mode that's driven EA's digital revenue for a number of years in its other sports games, such as Madden NFL and FIFA. FIFA's digital revenue alone topped $145 million in the first half of the fiscal year, as the publisher revealed in late October. EA reported its fiscal 2014 earnings today, showing a net revenue of $1.12 billion in the fourth quarter of 2014, down from $1.21 billion during the fourth quarter last year. [Image: EA Sports]
College football settlement costs EA another $8 million
When EA settled its ongoing litigation with student athletes in September 2013 related to its NCAA Basketball and Football video games, its expenses amounted to $40 million. Now, it is tacking on $8 million more in expected expenses for fiscal 2014, bringing the total to $48 million, according to the company's year-end financial results. EA reported $40 million in settlement expenses as recently as the last fiscal quarter, ending in December. The publisher canceled its 2014 college football video game in September, following the NCAA's decision to not renew its licensing agreement with EA in July. The settlement by EA and the Collegiate Licensing Company led to another lawsuit in November, this one by the NCAA against EA. EA planned to continue working with the CLC to develop college sports games without the use of the NCAA's marks and logos, a non-exclusive agreement that was slated to last three years. The college athlete likeness lawsuits stem back to May 2009. [Image: EA]
EA net revenue down in Q4, fiscal year 2014 [Update: Titanfall numbers]
EA reported net revenue of $1.12 billion in Q4 2014, down from $1.21 billion in Q4 2013. This marks the end of EA's fiscal year 2014, and its overall net revenue was similarly down, from $3.8 billion in 2013 to $3.58 billion in 2014. Gross profit for the quarter was even with 2013's number at $900 million, but for the year, gross profit fell from $2.41 billion to $2.23 billion. Operating income for 2014 fell to $33 million, compared with $121 million in 2013. Net income was up for the quarter, $367 million, but down year-over-year, from $98 million to $8 million. EA launched Titanfall in March, and while it was the best-selling game that month as rated by the NPD, EA didn't provide sales numbers in its report. EA says it is the No. 1 publisher on Xbox One and PS4 in the western world, led by sales of Titanfall, Battlefield 4, FIFA 14, Need for Speed Rivals and Madden NFL 25. Mobile revenue generated $460 million (non-GAAP) in fiscal year 2014, setting a "new record" within the company. "Electronic Arts delivered outstanding results in fiscal year 2014," CEO Andrew Wilson said in the report. "Most importantly, we produced hit games, innovative digital content and services, and amazing entertainment for our players around the world." For fiscal year 2015, EA expects net revenue of $4.38 billion. In Q1 2015, EA expects net revenue of $1.2 billion. Update: EA sold 925,000 copies of Titanfall on Xbox One and PC during the quarter, COO Peter Moore announced during EA's investor call, citing numbers from NPD. The Xbox 360 version is "off to a great start as well," Moore said. [Image: EA]
Square-Enix improves losses in Q1
Square-Enix's latest financial numbers (PDF) are a bit mixed. The publisher posted a loss for the first quarter of its fiscal 2014, but said loss is an improvement over the loss posted during the same period last year. Specifically, Square-Enix posted net sales of 24 billion yen ($245.3 million), down from 24.9 billion yen ($253.7 million) during Q1 last year. The company recorded a net loss of 493 million yen ($5 million) an improvement over last year's loss of 2 billion yen ($21.1 million). Outside of Square-Enix's overall performance, the Digital Entertainment arm of the company (i.e. video games) showed some growth, with net sales of 11.5 billion yen ($118 million) and an operating income of 1.3 billion yen ($13.4 million), up from sales of 11.3 billion yen ($115 million) and a 111 million yen ($1.1 million) operating loss last year. Even so, Square-Enix cited "weak" sales of console games, as no major titles were released during its first quarter. Meanwhile, its browser and smartphone titles have been making "smooth progress" and the Wii MMO Dragon Quest X "has been showing steady performance." The financial statement reiterated comments from earlier this year – when the company posted a $134 million loss – noting the rapid spread of mobile devices like tablets and smartphones, while the console game market becomes increasingly competitive. These changes have already led to major restructuring, in particular a lot of executive shuffling.
EA: Tiger Woods PGA Tour 15, UFC not planned before next March
Electronic Arts has confirmed to Joystiq that neither Tiger Woods PGA Tour, nor its take on the UFC rights it acquired last June, will be released in fiscal year '14 (concluding March 31, 2014). Although this doesn't necessarily confirm there will be no Tiger Woods PGA Tour 15 as has been rumored – due to the awkward timing of the game's standard release in late March – it does confirm the game won't come out in its usual spot during the last week of March, which it has done for three years. Speaking during today's investor call, EA Labels boss Frank Gibeau explicitly mentioned 11 games the company plans to launch before next March, none of which were UFC or Tiger. When asked for clarification, a representative for EA told us the games would not release in the fiscal year, though they are "still in development."
No Star Wars games in FY 2014, EA says
EA won't launch a Star Wars game during its 2014 fiscal year – April 2013 to March 2014 – EA said during an investor call today. Yesterday EA announced it had signed an exclusive, multi-year deal with Disney to develop and publish games in the Star Wars universe. EA released its FY 2013 results today, complete with expectations for 2014 that put net revenue at $3.50 billion. This is based on the launch of 11 games and 15 mobile titles, EA Labels President Frank Gibeau said. In FY 2013, EA saw a net revenue of $3.797 billion, down from $4.143 billion in 2012. Gibeau called out the next Battlefield, FIFA, Madden, NBA Live and Need for Speed games as next-gen titles. It's notable that NBA Live is on the schedule at all, considering that series' rocky launch history. "In fiscal 14, we will release 11 major titles across consoles, and on the PC. This includes our core sports titles," EA Labels President Frank Gibeau said, before listing the following franchises and games:
