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EA to stop releasing physical games in German speaking countries…


Romier S
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One of the largest game manufacturers is in a similar situation: Electronic Arts. EA bestsellers include the FIFA, Battlefield, F1, Madden, Apex Legends and The Sims series. With FIFA Ultimate Team trading card packs alone, the listed US group generated more than 1.6 billion dollars last year.



The European EA locations are now facing profound changes. Electronic Arts GmbH, based in Cologne's Rheinauhafen, employs around 100 people who, in addition to the German market, also look after Austria, Switzerland and Scandinavia.

EA Deutschland's latest annual report states: "The ongoing shift from physical goods to digital downloads continues to have a negative impact on sales development. Revenue from digital downloads is not processed through EA, but through an affiliate."

Therefore, an "economic restructuring" was initiated: Local customer contracts had already been terminated in May 2022 - after the restructuring, Electronic Arts will "no longer generate sales with packaged goods" in German-speaking countries. As a result, EA already expects a "significant decline in sales" in the current 2022/23 financial year.

Provisions in the tens of millions were made on the balance sheet, both for staff and for take-back obligations and discounts. However, the German Electronic Arts headquarters in Cologne should be retained – also because many EA games are localized (i.e. translated and synchronized) there.

 

https://www.gameswirtschaft.de/wirtschaft/electronic-arts-deutschland-games-datentraeger/

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