Electronic Arts Inc. (EA - Analyst Report) division PopCap Games recently announced that the sequel to Plants vs. Zombies is now available worldwide for Apple’s (AAPL - Analyst Report) iOS-based devices. Plants vs. Zombies 2 is a free-to-play game and would soon be available in seven different languages.
The game offers a graphically enhanced representation of its earlier version which takes players through different time zones in history and brings them face to face with zombies from various time periods. Currently, the game features 60 levels and another 12 levels will be added, going forward.
EA continues to release new games on frequent basis, which have helped it to gain. Recently, the company released NCAA Football 14, packed with different graphic features as well as improved and innovative game play. The game can be played both on Microsoft’s (MSFT - Analyst Report) Xbox 360 device and Sony’s (SNE - Snapshot Report) PlayStation 3 consoles.
Earlier, EA unveiled Battlefield 4 (slated to release on Oct 29) that can be played on the upcoming gaming consoles – Xbox One and PS4. The company has entered into licensing agreements with a number of brands to promote the game. The Battlefield-branded products include a novel penned by Peter Grimsdale that dwells on the background of Battlefield 4 as well as an art book related to the game published by Titan Books.
As per the findings of the industry research website, www.reportlinker.com, the video gaming industry is expected to grow 9% year over year to $76.0 billion for 2013. In the gaming segment, mobile and online gaming formats will act as catalysts and offer maximum growth as customers are gaining access to cheaper and faster mobile internet connections. Although, Console gaming may witness a rationalization in its sales growth rate.
Another gaming industry research company “gamasutra.com” projects global game revenues to increase by 6.0% on a year-over-year basis and reach $70.4 billion in 2013. The research firm believes that maximum growth will be registered in Latin American and Asian-Pacific regions as top-growth regional markets with each expected to grow 11.0% this year.
We believe that EA is well-positioned to grab this huge growth opportunity based on its innovative product pipeline. However, the fragmented video game industry and increasing competition are the major headwinds, going forward.
Currently, Electronic Arts has a Zacks Rank #3 (Hold).