Why EA Saw Decline in Mobile Revenue Despite Obtaining Big Hits Through Acquisitions

Electronic Arts experienced a significant decline in mobile revenue during early 2022 despite investing $3.5 billion in the acquisitions of Glu Mobile and Playdemic in 2021. While the company initially saw a 68% year-over-year increase in mobile net bookings for the third quarter of fiscal year 2022, this growth proved unsustainable. Analysis of the company’s 21 top-grossing mobile titles, which represent 96% of its mobile revenue, reveals that total mobile revenue decreased by 23% year-over-year in the first quarter of 2022, even as total downloads rose by 22%.

The primary cause for this downturn appears to be the integration strategy employed following the 2021 acquisitions. Rather than maintaining the operational autonomy of the acquired studios, Electronic Arts absorbed Glu and Playdemic into its broader corporate structure. This approach led to the departure of key leadership and creative talent, mirroring historical challenges the company faced over a decade ago when integrating studios like PopCap and PlayFish. Consequently, major acquired intellectual properties, including Kim Kardashian: Hollywood and Golf Clash, suffered revenue declines after joining the portfolio.

The analysis, which draws on data from the first quarter of 2022, highlights a disconnect between the acquisition of high-performing assets and the ability to maintain their momentum post-merger. By prioritizing centralized management over the preservation of original studio culture and expertise, the company struggled to effectively operate the very titles it sought to leverage for growth. The findings suggest that the loss of institutional knowledge and original creative teams remains a critical barrier to successful mobile expansion for the organization.