You're watching...
Electronic Arts COO Peter Moore on the video game maker’s earnings, strong sales for its “Star Wars: The Old Republic” game and the growth of so...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
And ready.
Well right now shares of electronic arts up pretty sharply after higher than expected sales of its new Star Wars game -- Giving a boost to its third quarter but everybody's looking for typical you know what you don't for me lately they're looking toward.
The fourth quarter.
And will that be a tougher way joining us now from Mountain View California to find out chief operating officer -- electronic arts low Peter -- good to have you here you've narrowed your loss.
Which is something that obviously investors are absolutely -- church foyer over but let's talk about the current quarter.
What is it behind us sort of weaker forecast than what people had expected.
Well you know -- I don't -- with -- this is non-GAAP -- but -- you know we had a pretty decent quarter was one point 65 billion dollars in revenues which was up 17% year -- year 99 cents EPS well above -- a lot of -- driven by.
Advanced demand and and selling and quite frankly to style was the Old Republic TO point.
So what we are a little bit more you know guided on what we think Q full end up I think we've given -- between ten and twenty cents.
But from my perspective had a tremendous Q3 and a lot of it driven by incredible demand for style was -- Republican massively multiplayer online get.
Yet okay that is it a big Star Wars.
Very very big -- here in fact you had millions of people downloading it and getting on line I guess and really dealing with that but what about this issue Peter with the servers.
People were waiting to try and get on and then -- analysts automatically assumed when the weight.
Got shorter it was because people just gave up can you clarify for us what's going on without way to play online with -- Star Wars game.
We -- that weeks ago -- people -- -- online to meet demand -- -- the wait times now what minimal -- we look at -- that are 5060% capacity it's -- it's a fine line with having enough people to be able to have a great play experience with.
This is having people wait and and I don't think you hear that noise anymore in the.
-- you don't but I just want to make sure it wasn't because you lost gamers.
Not at all -- -- all all right let's get to social gaming when we were last in October at electronic arts The Sims caught my attention because.
This is an opportunity to bring in female viewers and it's social gaming -- FaceBook not just the big -- opportunity that you guys have with everything that you got from -- cap but.
How is that going and what does it mean if if FaceBook goes public which we know is an inevitability and what -- -- to your bottom line.
Well the -- -- should point -- was a tremendous surface far right -- -- FaceBook with our own IP and -- as we sit here today if I look at that data this morning.
We're about four million people playing every single day.
And about 21 million people have downloaded the gap and plan a monthly basis so he's just one of a number of games that we have on FaceBook and perhaps more importantly we have very strong slate in -- quite thirteen going forward.
As of maple for more -- Will class -- three not not generic intellectual property going on FaceBook.
But intellectual property the people recognize and wanna play and it's an important part of our business but as you well know Liz it's it's it's a relatively small part of our overall -- -- practice today is FaceBook grows.
Will grow with.
I've got to teach our some of our viewers I'm sure some of them already know what it means but premium not premium but premium.
And that of course is when people can play the game but there could perhaps are you guys aren't able to sort of capitalized.
On certain opportunities to get people to pay up for some things is that cannibalizing.
Profits for you and how do you wrap your arms around something like that Peter.
Not a toll of the I hear freeing him is bringing in large numbers of people because there's no barrier to play in in the aspect of price so.
We see it on FaceBook we see it in particular how mobile phone business right now which is -- our real growth area and very simply it's the game is free to play if you wanna advanced -- get new features in the game is -- -- -- by micro transactions.
To be able to buy that and that's where the business model for companies like ourselves like we.
We often referred to them as whales.
May you know four or five or 6% descend on the scenario on the game -- the platform.
Well actually pay money and the balance those people who very very happy from the big plan for free but it builds -- very interest -- ecosystem but it casts an incredibly -- net gains.
-- you guys are geniuses you get people to pay for things that don't even exist like pixelated -- -- on that that's true genius.
Let me just finish by asking you a little bit more on Star Wars.
Four Q4 are the estimates for sales going to be right or -- -- miss some of those or at least the expectations on the Star Wars business.
It's an interest in business were watching it every single day lives and and has got more subscribers turn into paying subscribers right if you familiar with the getting to get thirty days to freak out we're seeing tremendous.
Rates in two people actually then.
Of course starting to pay as and that's really the business while I think the important thing to notice here is very much crawl walk run.
And memos are long term plays we've invested as you well know.
Many many isn't development this is alive business now and you know I had two months will not an MM I'll make -- break.
But when we think where people sit here two UTS are now talking about this -- going to be very very successful we continue to add more contents.
Well making sure the experience through.
The addition of more servers and an -- and infrastructure is right.
It it's a long term play for electronic arts we feel very very good about the first actually the first month of play that we've seen so far.
We'll watch it Peter thanking -- for those of us who grew up with Star Wars.
It's about me George Lucas still -- -- it and it's unbelievable good to see you thank you so much what you guys are riding that wave to appreciate it.
Thank you -- Peter Moore is the chief operating officer at the --
