Electronic Arts Inc. (EA) Earnings Call Transcript & Summary

Hello, and welcome, everyone, to EA PLAY 2020. We're happy that you're joining us today. Over the next 45 minutes or so, we've got so much for you, including creative, innovative and really fun new games and a lot of news to share. But before we get into the show, I'd like to take just a minute here. I want to extend a heartfelt thank you to first responders, medical staff and essential personnel. This has certainly been a challenging year. From natural disasters like the bushfires in my home country to the devastating COVID-19 pandemic, these brave heroes are working to keep us safe and healthy at every turn. I also want to thank our teams for their amazing dedication while working from home. What you've been able to achieve is nothing short of inspirational. We are also deeply thankful to all of you, our players. Even when we've had to stay physically apart, billions of you are using games to come together to play and do amazing things for each other. You've shown why this is truly the greatest form of entertainment on the planet. This is also a critical time for the movement to end racism and racial injustice in this world. Black lives matter, and there is much to be done to drive real and meaningful change. A couple of weeks ago, we shared some actions that Electronic Arts is taking. We will not rest on this. It's a long-term commitment. We are here for players of every color, background, religion and personal preference. We will continue to build strong representation in our games, and we are focused on making our communities fun, inclusive and positive places to play. We also have real work to do to bring greater diversity into our company, and we are committed to doing that work. Today, we're here because of the power of games. Games bring us together. They can make our lives better. They can teach us. They can provide escape and self-expression. And most of all, games can be fun. All of us at Electronic Arts believe in that, and it's why we're excited to get up every morning to make great experiences for all of you. So thanks for being here with us. And now let's get into some games.

What's up, everybody? I'm Greg Miller. Welcome to EA PLAY. We had an incredible show in LA planned for you: huge stage, massive setup, these giant monitors. I was going to fly in, in an X-Wing. I was going to land the X-Wing on stage. I was going to set off a bunch of fireworks. Then what? T-shirt canon, bam, shooting out game consoles, then Carole Baskin, some tigers. That last part was all me. Then because of circumstances beyond our control, we had to come up with something a little different. Instead of L.A., I'm in my hometown of San Francisco, where we still have the tigers. [indiscernible] No tigers. So you lied, [ folks ]. All right. I'm being told there are no tigers. But whatever, we're still going to bring you the EA PLAY you know and love: huge surprises, big announcements, incredible reveals and never-before-seen gameplay. Coming up over the next hour, we've got game reveals galore, world premier trailers of new titles, some old favorites making a comeback, a look at a new way Star Wars fans can live out their greatest fantasies this year, plus a sneak peek of the future. And pay close attention because today, you could win one of thousands of Steam codes for more than a dozen great EA games on Steam. Throughout the show, keep an eye out for discreetly placed golden letters. Write them down as they appear. And at the end of the show, we'll tell you where you could enter that secret code for a chance to win free games on Steam. So don't go anywhere. Who am I kidding? None of us can leave our houses. But enough talking. Let's see some games. Up first, we're heading to the outlands. That's right. It's Apex Legends time. [Presentation]

Hey, Apex fans, the battle just keeps getting bigger. Thanks to you, Apex Legends is coming off its most successful, most epic season yet. And we're just getting stated. Season 4 saw more of you jumping into the fight than ever before, and you've kept that amazing momentum going forward, making season 5 the biggest and best start to a season ever. [Presentation]

We hope you've been enjoying Season 5 – Fortune's Favor, which has seen the introduction of our latest legend, Loba; a major map change to Kings Canyon, rest in peace, Skull Town; an all-new Ranked series; and a ton of Quality Of Life Updates. But it's about to get even better. Today, I'm here to tell you about what's coming next to Season 5 with our latest collection event, Lost Treasures. Take a look. [Presentation]

As you just saw, The Lost Treasures Collection Event brings with it a ton of great content, including a new limited time mode, Armed and Dangerous Evolved. It's the return of a fan favorite, snipers and shotees only, but with a twist. All armor is Evo armor, and we're removing all of the Respawn beacons across the entire map. Don't worry, though, you'll still be able to bring back your teammates with the help of a new item, the Mobile Respawn Beacon. You'll have one of these in your inventory at the start of each match, giving you the power to choose when and, more importantly, where you bring your teammates back into the battle. Lost Treasures also introduces a new town takeover, Crypto's Map Room, which gives players a closer look at what motivates this drone-wielding hacker. And of course, The Lost Treasures Collection delivers a bunch of exclusive content you can earn by completing challenges as well as all-new event exclusive cosmetic items and the introduction of [ your boy ], Mirage's Heirloom, which is fittingly a trophy of himself. [Presentation]

And the best part is you don't have to wait that long. Lost Treasures drops on Tuesday, June 23. And that's not all, Apex fans. The battle is expanding. That's right. This fall, we're bringing Apex Legends to Steam. And I know you're hoping, wondering, praying. So before you ask, yes, cross-play is coming to Apex this fall. It's been one of the biggest requests we get, and we're thrilled to finally deliver it to our fans. What am I forgetting? Yes, one last thing. Let's make it official. We're huge fans of Nintendo here at Respawn, and we're incredibly excited to be bringing Apex Legends to the Switch this fall. And we'll share more details in the months ahead. So that means you'll be able to squad up no matter where you and your friends prefer to play: Xbox, PlayStation, Switch or on the PC via Origin and Steam. We're throwing out a lifeline and healing the divide between the platforms. On behalf of the entire Apex team, we want to thank our incredible community. Your passion for the game is truly inspiring. We look forward to seeing you all in the arena. And don't forget, check out Lost Treasures on June 23.

Man, that was amazing. I think I'm hyperventilating. I'm having a really good time here. [Presentation]

Sul sul, everyone. One thing I admire about Apex Legends is its commitment to having such a diverse range of characters. At The Sims, we've always believed representation and diversity in games is critically important, perhaps now more than ever. It's difficult to put into words just how meaningful it can be to see yourself reflected in the games you play. So here to tell you in their own words are a few members of our Sims community. [Presentation]

As you just saw, there are so many reasons why I am proud to be part of The Sims global community. We want The Sims to be a place of unity and hope, a place where you can be your authentic self and build your vision for our shared world, a place to imagine what's possible. To our Simmers, thank you for everything you've done to make your communities, virtual and real, a better place. Now I know some of you tuned in hoping for some Sims news, and we'll have plenty to share as the summer goes on. But we do have one announcement for you. We'll be welcoming players on a whole new platform, as The Sims 4 arrives on Steam today. Take a look. [Presentation]

Hey, everyone, Alex here from the social team. And joining me today from our community team is Freeman.

Hi, folks. Yes, we're here to tell you that it's not just The Sims 4 arriving on Steam today. Five great EA games, including Titanfall 2, A Way Out and Dead Space 3 are all playable right this second.

And when EA Access arrives on Steam this fall, you can get all those great titles and a ton more with your membership.

You can also expect to see our new releases on Steam, too. One of the first to arrive, just a short while ago, with full mod support via Steamworks.

The critics love it, and we know you will, too. This is Command & Conquer Remastered. [Presentation]

And Steam isn't the only platform getting some love. We'll be bringing games to more platforms than ever.

You can expect 7 new games coming to Switch in the next 12 months, including Burnout Paradise coming tomorrow and Apex Legends later this year. And we're bringing cross-play to many of your favorite games, too, starting with Need for Speed Heat and continuing with some new titles being revealed later in the show.

It is all about giving you the freedom to play what you want, where you want and with who you want. It's about playing together.

Absolutely. Now let's reveal some more games. Over to you, Greg.

Quick reminder to keep an eye out for those special golden letters hidden throughout the show. They could appear anywhere, and I mean anywhere, so keep your eyes open. Write the letters down as they appear. And once you've got the full code, you'll be able to enter for a chance to win one of more than a dozen great games on Steam. So stay tuned and find out where to enter the code at the end of the show. Now if you follow my content at all, then you know there's nothing I love more than buffalo wings and discovering inventive new games. Well I don't have any buffalo wings, but I do have something just as tasty. Over the past couple of years, EA has partnered with the amazing studios like Hazelight and Zoink to give us such creative titles as A Way Out and Fe. Here to explain how they do it are a few of the talented developers working on the next wave of EA Originals. [Presentation]

And now for a deeper dive into what these developers are working on, we turn our spotlight on 3 studios. Up first is Hazelight and their mild mannered, quiet leader, Josef Faris. [Presentation]

Wow, that was the best way to describe it. All right. Josef, we love you so much. Thank you. Keep it up over there. F*** the Oscars. Of course, ladies and gentlemen, let's keep this Originals train rolling, and let's stay in Sweden. Of course, I'm on a fan of both their delicious red gummy fish and their video games. So ladies and gentlemen, please welcome Klaus and Olov from Zoink Games.

Thanks, Greg. Welcome to Gothenburg and well my home. Unfortunately, I didn't bring you any Swedish fish, but we do have some exciting news for you about our latest game. At Zoink, we've always been driven by love of rich visual storytelling and creating strange worlds that people can escape to, the weirder, the better. And I think my friend, Olov, would agree.

Yes. Absolutely. And for our next game, though, we wanted to try something a little darker, something out of a gothic fairy tale. It started with a mood and some paintings, grew into this eerie, strange world that feels like something out of a beautiful, twisted dream. And that's the world of Random.

Lost in Random is the story of Even, a little girl with a big heart and an even bigger temper. After a horrible event that changes her life, she embarks on a dangerous journey through the world of Random. But fortunately, she's not alone. Just like I have Olov, Even also has a crazy little weird friend thing with her.

Along her journey, Even discovers Dicey, a playful, loyal, almost puppy-like dice companion that gives her the power to really change things in the kingdom of Random. Despite the name, in Even's world, randomness is feared, and the dark force controls every aspect of life, from where you live to how you act or what your favorite color is. It's a coming-of-age story set against the backdrop of a mysterious world, but it holds a modern message that's really relevant to our world right now.

I think that we can all relate to the desire to try and control the chaos around us. With Dicey's help, though, Even learns the power in doing just the opposite: embrace the randomness, accept uncertainties in life, and you'll be surprised how far it takes you.

Imagine if you could change the course of life with a roll of a dice. What would you do? Play it safe or trust in yourself and take a chance? We can't wait for you to play and find out.

We're still a long ways from launch, but we hope you will join Even and Dicey on their journey next year. Until then, please enjoy this first look at Lost in Random.

Welcome to Random. [Presentation]

Really cool. That's why we get Lost in Random. And man, embracing randomness, I feel like I live that every day in my life. Did you know how I was going to do? You didn't know that. Dicey is my spirit animal. The game's out next year. But for something that's blasting off a whole lot sooner, take it away, Kevin Franklin.

At Final Strike Games, our team of experienced industry veterans have worked on incredible multiplayer franchises. We are passionately focused on making great multiplayer games. That's why I am incredibly excited to announce that we have partnered with the talented team at EA to release our first ever title, Rocket Arena. As you'll see, we stay loyal to the name of the game. It's a rockets-only shooter that allows players to get into the action quickly and stay in the fight. We wanted Rocket Arena to be an awesome, competitive experience to play with friends. I think you're going to love what we've got in store for you. Here is the all-new trailer of Rocket Arena. Enjoy. [Presentation]

So as you just saw, rockets are obviously awesome to blast all over the place. But in order to come out on top, there's a lot to master. You'll have a range of rocket-powered abilities to blast opponents out of the arena and an arsenal of evasive moves: rocket jump, rocket climb and dodge to avoid getting knocked out yourself. Don't worry, though. You're never out of the action for long. Even when you're out, you'll fly right back into the fray. You'll also be able to really customize your own unique look and play style. Each of the 10 here is available at launch and have their own rocket-powered abilities. And as you play, you'll discover items that allow you to further refine each of your hero's play styles. Plus, every character has 100 levels of progression that unlock new cosmetics and rewards. All that and much more when Rocket Arena arrives on July 14. And there's plenty more content to come in our first season, which begins just 2 weeks after launch on July 28 and brings with it a Blast Pass and a ton of free content, including new maps, in-game events and a new playable character. Rocket Arena is a game meant to be played with friends, regardless of platform. That's why we're thrilled to announce cross-play support right from the start. So grab your friends, regardless of their platform, and get ready to blast off with Rocket Arena on July 14 on PlayStation, Xbox, Origin and Steam. And we'll be sharing more gameplay right after the show with the help of some great content creators. So check us out on YouTube at the link below. See you in the arena.

Wow, that looks great. And hopefully, you've all been keeping track of the golden letters hidden throughout the show and nearly crack the code. Here's a hint: it's not Kanye. Keep an eye out for the last couple of letters. And then at the end of the show, we'll reveal where you need to go to enter the code at a chance to win some great games on Steam. Now from the future of rocket warfare, we head to do a different kind of battle. It's the real reason I didn't get any sleep last night. And if you thought you heard sleigh bells, that's because it might as well be Christmas in June. It's finally time to talk Star Wars: Squadrons. Now okay, I promised to you, we are going to get a first look at some brand-new gameplay in just a moment. But first, for anyone who doesn't fully grasp why I'm so excited, earlier this week, EA and Lucasfilm dropped a trailer that literally gave me all the feels, chills, joy, excitement and then more chills on top of that. Take a look. [Presentation]

Wow, the 8-year old in all of us is celebrating and excited. The 37-year-old man on this couch is excited. Ladies and gentlemen, for the second year in a row, I have the honor and privilege of helping introduce a new Star Wars title. And here to put the hype in hyperdrive is none other than Motive's Creative Director, Ian Fraser. Hello, Ian.

Hey, Greg. How are you doing?

I'm great. How are you?

Doing good. Happy to actually get to show this to people.

I bet. Now in my copious notes I have on you, I'm told you are quite the Star Wars fan and have been a long time. How long have you liked Star Wars?

I've been a Star Wars fan for pretty much my whole life. I don't even remember the first time I saw the movies. And as a kid, there was a lot of different parts of Star Wars I loved. One of them was being a pilot, that idea of climbing into an X-Wing or a TIE Fighter. So you know I played all the flight games in the '90s, and I got pretty obsessive about them. I'd pause, meticulously draw the insides of the cockpits and stuff. And actually, I dug up some of those drawings from my parents' attic over the holidays.

We're showing them right now to the world. This strikes me as above and beyond the normal level of Star Wars fandom.

I think in Motive, you'll find that quite a few people have that level of Star Wars fandom. When we started this project, I talked to a lot of people as they joined the team. And a lot of them had similar kinds of stories of things they've done as kids. One of them even built a functional cockpit in his garage.

Wow, that's fandom on an another level. How do you guys go from being a fan drawing what you see in the game or building a cockpit in your garage to actually making this game?

Well, I think that fandom, just love of Star Wars, has provided a really good foundation for us. But on top of that, of course, the team at Motive got a lot of experience working with Star Wars when they worked on Battlefront II. And when Battlefront II wrapped up, there was a really small group of us that were really into particularly the pilot experience in Star Wars, and we wanted to make something new, something that really went all in on that part of the fantasy. And so we did kind of a grassroots initiative, started a little passion project, and that ramped up into eventually what is the game we're going to show you today.

You talk about your passion for this, your nostalgia for Star Wars flight games of the past. How do you honor that but make something brand new?

It's been interesting. We're trying to kind of pull from that spiritual heritage of many different games in that time period. At the same time, we want to do something that feels fresh and new for fans today. And so what we've tried to look at is sort of the spiritual core of what I think are the best of the Star Wars flight games of the past. And what they did that I love is that they made that part of the universe real, the level of depth and detail that they show in the ships, the way that you control them, is something that I remember fondly from my childhood and is something that we're trying to do very much with Squadrons. In real life, being a pilot is hard. It takes skill, and that's something that you'll see throughout the game. As you start off playing, it's pretty straightforward, fly around, shot your lasers. But as you get deeper into it, you start learning how to divert energy from your lasers to your engines, how to shift your shields from the front to the back to cover your butt in a dogfight. Or at the higher levels of skill, you could do really crazy stuff, like you can boost your engines, fly ahead, cut them off, whip around 180 and shoot a missile off your own tail while drifting backwards, like real ace pilot stuff. And that's really where we have a lot of fun with the game.

I want to do that. I want to learn how to do that. I understand the nuts and bolts of how to play it. Is there a single player story? Is there a multiplayer mode? What are we getting into?

It's actually somewhat both. So the game starts with a brand-new single player story, takes place a little bit after Return of the Jedi, and it has kind of a unique, dual-perspective approach to it. So when the game starts, you're going to create 2 pilots. You create a New Republic pilot and an Imperial pilot, and you're going to alternate between their perspectives, mission to mission, over the course of the story. You're going to meet a diverse cast of characters along the way and also a few familiar faces. Now when you're done with that story and you've played maybe a bit in the practice range, you say, "Hey, I want to try multiplayer." We want to make it really easier for you to hop online with your friends and play competitive space battles at that point. And so we've done a lot to try to reduce the barriers, to make it as easy as possible for you to play with your friends. And so I'm happy to say we fully support cross-play. You could be on PS4, Xbox One, PC. You could be playing on a traditional display or in VR, which, fun fact, the entire game supports VR from beginning to end. It's pretty cool. But regardless of how you're playing, which platform, they can all play together. Just hook up with your friend, connect, have an awesome space battle.

You just Death Star-ed my mind, man, like I don't -- that's awesome. That is -- the big question: when can people actually play it?

Not too long, actually. Star Wars: Squadrons is coming out on October 2.

Okay. Okay. Not too long at all. I was worried about you. I thought you're going to leave me on a teaser there. You didn't. You actually delivered. I appreciate that. The next big ask I have, on behalf of everybody watching, I'm sure, who came here for one specific reason, can we see some new gameplay of it? Can we see any gameplay of it?

Absolutely. I kind of figured you might want to. On behalf of everyone at Motive and the team at Lucasfilm, I am very happy to show you the world's first look at gameplay of Star Wars: Squadrons. Enjoy. [Presentation]

Now that's a lot to look forward to, but there's more. Here to tell us about the future of gaming is EA's Chief Studio Officer, Laura Miele.

Thanks, Greg, and thanks, [ Lamar ]. Welcome to the EA SPORTS family. There are great things to come from EA SPORTS for all of you, and that's just the beginning. As you've seen throughout the show today, our Electronic Artists are working hard to bring you more of the games that you want to play, games like Star Wars: Squadrons, Apex Legends and Command & Conquer. These games all exist because of you. Your voices are heard, and we are acting on your feedback. Now we've talked a lot about all the exciting games you'll be playing this year. But our studios are working even further out, creating new experiences, new stories, new gameplay, all enabled by new console technology. And we're so excited about what's to come, we don't want to wait until next June to share what the teams are working on. Generation shifts are an opportunity to push beyond the boundaries of gaming as we know it today, and this time is no different. Our studios are taking their crazy ambitious ideas and making them real. Criterion is known for how their games feel. From superior physics to nuanced details of gameplay, this team hand-curates the moment-to-moment experience. And with a new console this year, there will be a seamless immersion, which will get you into the race in a matter of seconds. BioWare imagines and creates worlds where you become the hero of your own story. And we're using this next generation of technology to make those fantasy worlds your reality. For every console generation, DICE sets the bar for excellence in audio and visual presentation. We are creating epic battles at a scale and fidelity unlike anything you've experienced before. At Motive, we are working on a highly ambitious and innovative new game that puts the power and creativity in your hands. And it's the experience that would have been impossible without next-gen technology. This is just the beginning of the things we are working on, and there is so much more to come. The future of EA Studios is not just about new technology. It's about you, your voices, your ideas. We want to be where you come to play. We want to make games for everyone. So please keep giving us your feedback, and let's build the future together. On behalf of all of our studios, thank you for joining us today. But before we sign off, there's just one more game we would love to share. Cuz and Deran, over to you.

Thank you. So the moment is here. We finally get to say...

We're back. We're doing it. It's happening. We're rolling. We've secretly got together. It's the beginning. The Skate evolution continues.

We've been waiting years, honestly, to make the right game at the right time with the right idea. And we're really, really pleased to say that we're here. It is really early, but it takes a little while to find Cuz or wake him up.

Dude, harsh. Still, we've got a long way to go, but we're stoked. And this is just the beginning.

And seriously, we really can't wait to bring you guys in and have you be a part of it with us.

We want to thank you for your passion, your patience and all of the support that you've shown us to get to this point.

All of the comments.

It's amazing. We cannot believe you commented this into existence. Amazing. They changed my life. Thank you so much. Skate forever.

Guys, guys, we did it. We brought back Skate. Thank you to EA. Thank you to Cuz. Thank you to Deran. Thank you, you. Thank you to me. I can't believe -- I'm so happy, and my heart rate -- is this what exercise feels like? Ladies and gentlemen, I can't believe it. But before we go, because I love you guys, here are the last letters of the secret code. If you think you've got the complete code, go to playr.gg/ea and enter for a chance to win one of thousands of free games sponsored by PLAYR.gg. You can find the official rules and everything else over at playr.gg/ea. Now this has been an amazing experience, an amazing opportunity for all of us all over the world to come together and celebrate gaming. Thank you for being part of EA PLAY. Until next time, I'll see you online. And it's been my pleasure to serve you.