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MagyarElectronic Arts CEO faces Nintendo Switch 2 question in recent earnings call
A transcript for a recent Electronic Arts earnings call has been posted online, and for those hunting for any detail about the potential Nintendo Switch 2, there was a relevant question posed by an analyst during the call. Michael Hickey of The Benchmark Co. was not shy in his usage of words, stating that “we obviously have a fair amount of evidence that the Switch 2 from Nintendo should come out this year”. Hickey wanted to know if Wilson could see a more-powerful Switch successor, with a larger display and better SoC, doing well with the kind of title that Electronic Arts is known for:
So in as much as you can sort of talk about an opportunity that's not been officially announced, just curious if you think you can have more success on that sort of platform that seems better geared towards your games?
Obviously, Wilson was business-like with his responses, making it clear that he could not “comment on anything that’s not been announced or acknowledge it in any way” while also adding “so without commenting at all on anything around Nintendo or the Switch.” After ensuring that Nintendo’s lawyers would not be on the phone to EA in regard to a Switch 2-related slip-up, Wilson did offer some interesting points, including that hardware improvements were always a good thing:
Where new platforms offer improved CPU, GPU, memory, battery life, screen resolution, that typically is a plus for our particular portfolio of games.
The EA boss singled out numerous popular franchises, such as FC (successor to the FIFA series), Madden, Battlefield, and Apex (Legends) that would benefit from hardware improvements thanks to the increased “immersive” aspects thus leading to strong sales. If the Nintendo Switch 2 does come out sporting the kind of PS4-like power that has frequently been suggested, then it should be able to tackle the sort of games that EA is noted for in a much grander manner than the current Switch manages with titles such as EA Sports FC 24 (get a copy from Amazon), and it may even finally bring the Battlefield series to future owners of the next-generation Nintendo hybrid console.
(See drop-down section below to read the full relevant section of the transcript.)
Source(s)
Michael Hickey Analyst, The Benchmark Co. LLC
Hey, Andrew, Stuart, Katie, thanks for squeezing me in here. First question, kind of a challenge, Andrew, because it hasn't been announced, but we obviously have a fair amount of evidence that the Switch 2 from Nintendo should come out this year. And from what we know, it's going to be a bigger display, more horsepower. It seems like it's something a platform that would better lend itself to your games. So in as much as you can sort of talk about an opportunity that's not been officially announced, just curious if you think you can have more success on that sort of platform that seems better geared towards your games?
The second one is sort of looks like 2025 is not called an investment year, but most of the growth here is driven by your core games and live services. But you look at your longer-term pipeline, you think about Battlefield, Mass Effect, Star Wars, obviously you've been great in the action genre. I think you're still developing a shooter from Respawn as well. [indiscernible] (00:41:28) free-to-play. Maybe user-generated content. Then licensed property is like Iron Man, Black Panther. I mean, all of those seem feasible by fiscal 2027. So just sort of curious, and I know you kind of talked about your longer-term growth opportunity. Near term you focus on levers, but do you think you're sort of in a position here in the next few years to sort of accelerate your top line growth just given how substantial your pipeline appears to be? Thanks, guys.
Andrew P. Wilson Chairman & Chief Executive Officer, Electronic Arts, Inc.
Yeah. A lot there, and you were a little quiet in the beginning. But I think what you're asking or were suggesting there has been some rumors that Nintendo is doing a new console, and to the extent that I'm able to comment on things that are not yet announced, do I think that might benefit our company and our portfolio?
Again, I can absolutely not comment on anything that's not been announced or acknowledge it in any way. What I would say, though, is to the extent that platforms over the course of the last 20 years have come out and offered improved CPU, GPU, memory, battery life, screen resolution, to the extent those things have happened where we're able to deliver more immersion for our players, particularly around our biggest franchises like FC, like Madden, like Battlefield, like Apex, that has typically been very good for our business. Our players' ability to really experience our games at the highest level has typically worked out very well for us. And so without commenting at all on anything around Nintendo or the Switch, I would just say new platforms are good for us. Where new platforms offer improved CPU, GPU, memory, battery life, screen resolution, that typically is a plus for our particular portfolio of games and the community that plays them.
