EA Emphasizes the Significance of Entertainment for Humanity, Minimizes Concerns of Recession

Andrew Wilson, CEO of Electronic Arts, has addressed recession concerns by stating that while video games are not completely immune to economic downturns, they may have a better ability to thrive during these times compared to other industries. Speaking during EA's recent earnings briefing, Wilson emphasized that video games are more resilient than other businesses because he believes that humans have a fundamental need for entertainment and are therefore less likely to significantly reduce spending in this area.

Wilson expressed his belief that video games hold significant value compared to other entertainment options, particularly in times of financial restraint. He acknowledged a slight decline in certain regions, like Europe, but emphasized EA's overall global growth.

Despite the increase in grocery and gas prices, as well as inflation, the video game industry has shown remarkable resilience and continues to thrive. According to Circana analyst Mat Piscatella, spending on video games in the US has grown by 2% in the year 2023, reaching a total of $34.1 billion. This surge in spending can be attributed, in part, to the ongoing effects of the pandemic and the stay-at-home orders, which have encouraged individuals to invest in entertainment options such as video games.

It has been a monumental year for the release of major games, with Hogwarts Legacy emerging as the top-selling game in the US so far. However, the launch of Activision's Call of Duty: Modern Warfare III on November 10 might surpass its popularity.

EA, in particular, has recently announced that Madden NFL 24, one of its major games anticipated for 2023, has witnessed a growth in revenue when compared to its predecessor, Madden NFL 23. Over the past three months, the company has garnered a profit of $399 million, and an impressive $993 million profit over the course of the last 12 months.

Editor's P/S

EA's emphasis on the importance of entertainment, particularly video games, during times of economic uncertainty is a testament to the resilience and significance of the gaming industry. The fact that spending on video games has increased despite rising grocery and gas prices and inflation is a clear indication of the value that people place on entertainment as a means of coping with challenging times.

The success of games like Hogwarts Legacy and the upcoming release of Call of Duty: Modern Warfare III further highlight the continued demand for high-quality gaming experiences. EA's own growth in revenue with Madden NFL 24 demonstrates the enduring popularity of sports games and the company's ability to capitalize on this demand. Overall, EA's emphasis on entertainment as a fundamental human need is a powerful message that underscores the importance of video games in our lives, even during times of economic hardship.