Pixel P&L: EA Posts Strong Q3 Ahead of $55B Saudi-Backed Acquisition Close

Welcome to another Pixel P&L edition. This issue takes 6 minutes to read. If you only have one, here are the 5 most important things:

• EA posts $3 billion in bookings but profit plunges 70%.

• Nintendo's Switch 2 demand drives sales to nearly double year-over-year.

• Sony ships 8 million PS5 consoles despite quarterly decline.

• Roblox launches an AI tool that lets players create 3D objects from text prompts.

• Epic Games Store reports 57% jump in third-party revenue.

Let's get into it.

EA Posts $3 Billion in Bookings Despite Profit Plunge

Electronic Arts reported net bookings jumped 38% to $3.04 billion in its fiscal third quarter ending December 30, driven by Battlefield 6's launch. The game became 2025's best-selling U.S. title and set franchise engagement records.

The strong bookings masked a 70% drop in net income to $88 million from $293 million year-ago, while revenue edged up just 0.95% to $1.9 billion.

EA Sports FC contributed high-single-digit booking growth through Ultimate Team and FC Mobile, while Apex Legends bookings rose double-digits on new features.

The publisher discontinued earnings calls and forward guidance following last October's announcement of a $55 billion acquisition by a consortium including Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners. The deal awaits regulatory approval and is expected to close in EA's first fiscal quarter of 2027.

U.S. lawmakers last month urged the FTC to scrutinize potential labor market impacts given EA's domestic gaming workforce dominance.

Nintendo Sales Double on Switch 2 Demand

Nintendo reported net sales nearly doubled to ¥1.9 trillion ($12.3 billion) in the nine months ending December 31, driven by its Switch 2 console launch.

The Kyoto-based company sold 17.37 million Switch 2 units since the hardware's June debut, outpacing the original Switch's 14.86 million units sold in a comparable nine-month period following its March 2017 release. The latest quarter was the console's strongest yet with 7.01 million units sold.

Operating profit rose 21% to ¥300.4 billion ($1.9 billion), while net profit climbed 51% to ¥358.8 billion ($2.3 billion).

Mario Kart World led Switch 2 software sales with 14 million copies, followed by Donkey Kong Bananza at 4.25 million units.

The original Switch sold 3.25 million units in the period, down 66% year-over-year, bringing lifetime sales to 155.37 million. Switch software sales dropped 12% to 108.93 million units, compared to Switch 2's 37.93 million.

Physical games accounted for 59% of total sales during the quarter.

⚡️Quick Bytes

Sony Ships 8 Million PS5 Consoles in Quarter

According to its latest earning reports, Sony shipped 8 million PlayStation 5 units in the three months ending December 31, bringing total shipments to 92.2 million. The figure represents a 1.5 million decline from the same quarter last year. PlayStation Network monthly active users reached 132 million, up 3 million year-over-year. Combined PS5 and PS4 software sales rose to 97.2 million units, with digital downloads accounting for 76% of full game purchases.

Roblox Launches AI Tool for In-Game Object Creation

Roblox introduced a beta feature allowing players to generate interactive 3D objects from text prompts while playing games on its platform. The tool currently supports two templates: drivable four-wheeled cars and single-mesh objects. In the test game Wish Master, players created over 160,000 items in six months, with users showing 64% longer play sessions. The announcement follows investor concerns after Google unveiled its Genie world-generation tool, which triggered stock drops for Roblox and major publishers including Nintendo and Take-Two.

Epic Games Store Reports 57% Jump in Third-Party Revenue

Epic Games Store third-party game revenue rose 57% to $400 million in 2025, while total store spending climbed 6% to $1.16 billion. The platform reached 78 million monthly active users in December, up 6% year-over-year, though total gameplay hours fell 14% amid declining engagement with first-party titles like Fortnite. Third-party gameplay increased 4%.

⚔️Side Quest

🤣Laugh:

📺 Watch: Nick B RPG dissects why spiritual successors fail by copying mechanics instead of feeling. Using Parasite Mutant's demo as a case study, he argues that faithfully recreating old RPG jank (random encounters, clunky menus, long loads) misses the point. We want games that play like we remember them, not replicas of their original flaws. Essential viewing on nostalgia versus modernization in game development.

🎮 Play: No, I'm not a Human delivers the most nihilistic horror experience in recent memory. Its unique art style amplifies the Lovecraftian dread into constant anxiety, and cleverly written characters pull you deeper into alienation. Fair warning: it's so demoralizing you might not replay it immediately. Still worth experiencing once, even if you never touch it again.

📚 Read: Paradox knows about its DLC problem. CEO Fred Wester discusses it in its latest earnings call. He admits the "barrage of DLCs" scares newcomers but Paradox won't change the strategy, and will just add bundles and subscriptions. Rock Paper Shotgun’s Evans-Thirlwell nails the real paralysis: you're caught between fear of missing crucial content and dread of spending hundreds more. His impulse-buy death spiral perfectly captures why you flee to Total War, then see 25 DLCs there too.

💡Did You Know

There's a new Witcher game that takes inspiration from Tinder. Reigns: The Witcher uses swipe-left-or-right card mechanics to tell canonical stories in the franchise. But here's the twist: you're not playing as Geralt. You control Dandelion as he composes songs about the White Wolf's adventures, seeking immortality through his art. CD Projekt Red worked closely with developers Nerial, making the game official canon—though the events are deliberately exaggerated through Dandelion's drunken embellishments. The game features five endings, combat encounters, and cameos from familiar characters, including a Rock Troll who becomes a chef if you encourage their dreams.

📜 Quote of the Day

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