Electronic Arts (EA - Analyst Report) and Insomniac Games announced that their new game, Fuse, will be released on May 28 in North America. In Europe, the game will be available from May 31. Fuse can be played in co-op mode and will be available for Microsoft’s (MSFT - Analyst Report) Xbox 360 and Sony’s (SNE - Analyst Report) PlayStation 3.
Gamers have the option to play as any of the four characters – Dalton Brooks, Izzy Sinclair, Jacob Kimble and Naya Deveraux – to fight the alien energy source called Fuse. The game offers a LEAP feature, which allows gamers to switch to any of the four characters during gameplay to accomplish the missions.
Gamers who pre-order the game will receive special weapons and armor for each of the characters, such as Hyperion Prototype Agent Armor Skins, Hyperion Prototype Weapon Skins and Quickdraw Team Perk. Each of these special pre-order materials would enhance the skill sets of each of the characters.
EA’s marketing strategy to attract gamers with bonus packs prior to the game’s release should definitely work in favor for the company and will help the company to get a better idea about the title’s popularity and can gauge its future performance. Additionally, EA will be generating revenues from the game even before it is released.
We believe that EA’s high-quality titles and a robust product pipeline along with increasing online exposure and traction in the social and mobile gaming market will boost its top-line growth over the long term. However, we believe that EA faces a number of headwinds that include a soft video game industry performance, particularly due to weakness in retail sales amid an aging console system lifecycle.
Additionally, competition from Activision (ATVI - Snapshot Report) and other gaming companies are the near term headwinds. The huge popularity of free-to-play games is also cannibalizing higher priced packaged goods video games sales, which is a major concern in our view.
Currently, EA has a Zacks Rank #3 (Hold).