That challenge may well be worth "a quarter of a billion" dollars, though they're still "projecting strong profitability" for EA Sports. Fiscal plans are made "conservatively".
The lack of these IPs getting titles could pose a "$250 million revenue challenge" for fiscal 2012 admits EA.
"While still projecting strong profitability and a very good business in fiscal 12, we did note and would note that there's about a quarter of a billion dollar challenge that needs to be overcome in that business," said EA CEO John Riccitiello.
Developments with the NFL has EA planning very "conservatively," and they assume a season lockout will occur. A 'lockout' means a season of a sport just won't happen. Naturally this can be quite disastrous for businesses like EA.
"We plan the business down about one third, $85, 90 million bucks, on the principal that there's a lock-out for the season," said Riccitiello. "That's a worst-case planning assumption, we expect it to do better if there's a season."
April 2010's FIFA World Cup raked in over $100m in revenue for EA Sports. There's no such title release this year except for a normal FIFA game which will hurt fiscal 2012 more compared to FY11's performance. Are you an EA Sports fan?