The results for the first quarter of EA's 2007 Fiscal Year have just been announced. Net revenue rose 13% to $413 million, but there was an overall loss of $81 million, which is worse than the same quarter last year. This is a result of the considerable support Electronic Arts has pledged for the upcoming Playstation 3 and Wii systems versus limited revenue from the XBox 360 and Playstation 2 platforms. While PS2 may soon be on the decline, XBox 360 sales will be ramping up. EA is already the top publisher for the XBox 360 in North America and Europe. Revenue for games released on cell phones also exploded from $1 million a year ago to $33 million in the quarter just ended. Overall Fiscal Year estimates still project $2.8 to $3.0 billion in sales with some $2.4 billion in cash or equivalents on hand for various activities.
"We're pleased to be the leading publisher on the Xbox 360," said Larry Probst, Chairman and Chief Executive Officer. "We are on schedule with strong support for the launch of PlayStation 3 and we have increased our development efforts for the Nintendo DS and Wii."
"We look forward to our slate of fall launches and the excitement surrounding next-generation software," said Warren Jenson, Chief Financial and Administrative Officer. "While the risks of this technology transition remain very real -- our franchises are well-positioned for the opportunities ahead."
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