Leading interactive entertainment company, King Digital Entertainment Plc. recently launched its popular Facebook (FB - Free Report) title Pyramid Solitaire Saga on mobile.
Pyramid Solitaire Saga was first launched on Facebook in May, 2014. It is King Digital’s first card-based cross-platform game. The cross-platform support of the game enables players who have previously played the game on Facebook to pick up their progress on mobile and that too right from the level at which they left off.
Currently, the game comprises 140 levels and can be downloaded for free on Apple’s (AAPL - Free Report) iOS and Google’s (GOOGL - Free Report) Google Play.
The storyline of the game is expected to attract a larger number of players, going forward. Moreover, the game has leaderboards where players can observe their respective scores while competing against their friends.
Per eMarketer, mobile gaming revenues earned worldwide is expected to reach $1.5 billion by 2017. This further highlights the untapped opportunity lying ahead of gaming companies like King Digital.
King Digital’s IPO was worst to date primarily due to its overdependence on Candy Crush Saga, a free to download game available on the app stores of Google and Apple.
With the rapid adoption of smartphones and tablets, we expect the demand for King Digital’s mobile-based games to increase exponentially. The company derives approximately 74.0% of revenues from mobile platforms. The company’s innovative product pipeline is a key positive.
In April, King Digital launched Diamond Digger Saga on Facebook. Recently, the company launched Bubble Witch Saga 2, which will further boost its top line in 2014. Moreover, gamers’ growing preference for free-to-play games bodes well for King Digital’s future prospects.
However, the strong sales of new consoles from Microsoft and Sony are expected to intensify competition for King Digital in 2014. Moreover, competition from Zynga and other established players with a more visible business model like Electronic Arts, Activision Blizzard and Take-Two Interactive should not be ignored.
Currently, King Digital has a Zacks Rank #3 (Hold).