(Found this on another page)
Alright Simmers, since the GP announcement yesterday, I have seen a lot of posts about the following complaints:
- EA Doesn’t Listen to Us
- EA is Greedy
- Boycott the pack.
Since EA is a large corporation, and I am a finance nerd, I wanted to to let the numbers talk! Please note this post is not to discredit the complaints that have been raised, just to put some facts behind talking points.
EA’s gross revenue in 2019 was roughly 4.9 Billion for comparison UbiSoft (Assassins Creed, FarCry, etc) grossed roughly 1.5 billion and Rockstar/Take Two (RDR, GTA) grossed 2.6 billion. These two companies were chosen due to large releases in FY19.
Between 28-32% (est. 1.47 Billion) of EA’s revenue comes from the Madden/FIFA titles PER YEAR. Meanwhile, in the entire six years that Sims 4 has been out, it just grossed 1 Billion in sales (avg. 166 Million a year- ie 3.6% of yearly revenue) as of 2019.
Noting this, the Sims is really penny’s in revenue when compared to other games. Knowing that the Sims 4 has been downloaded 30 Million Times, we can assume that if usually 2-5% of players buy a DLC (this is a number I’m just throwing out for the sake of conversation as it aligns with the Sims yearly revenue, and accounts for those who do not continue to play the title. I could not find an actual % DLC Sales for the sims), the revenue on a full price Game Pack (again assuming no bundles or sales) is likely only between 15 and 30 Mil. This is less than single percentage point of EA’s yearly revenue. Even if a single GP grossed over 100 Mil, you are still looking at barely 2% of their yearly revenue. If you boycott this pack, EA will not notice any hit to revenue, especially with other titles increasing in revenue by 27% year over year.
I think these numbers truly explain why the Sims 4 often feels like a cash grab. Corporations both in gaming and other industries are frequently out of touch with the consumer, and focus on proven business methods the gain revenue– ie. partnerships with other large corporations. To EA, Simmers are simply a loud minority. Looking at these numbers, I don’t expect for them to listen to us soon. While I fully support anyone who decide they do not want to purchase any given DLC, I think there is better ways to get EA’s attention.