Electronic Arts ( EA Quick Quote EA - Free Report) is one of the top global players in digital interactive entertainment. The company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. However, EA is dependent on a few well-known franchises like FIFA, Battlefield and Star Wars for revenue generation. The company has lost 5.3% in the year-to-date period compared with the Zacks Toys - Games - Hobbies industry's decline of 0.6%. Meanwhile, the Consumer Discretionary sector has tumbled 29.7% year to date. The company has been focusing massively on expanding its gaming portfolio to boost user engagement and growth on its platform. Electronic Arts ‘studio, Motive, recently announced that it would officially launch a remake of its classic sci-fi survival horror game, Dead Space, on Jan 27, 2023. The game, which has been built from the ground up by leveraging the Frostbite game engine, will be available for PlayStation 5, Xbox Series X|S and PC. The remake will be kept accurate to the original’s thrilling vision but will offer enhanced audio and crisp, harrowing visuals that have been carefully reimagined to evoke a new level of immersion and quality. Gaming Pipeline to Aid Prospects
Electronic Arts anticipates benefiting from its game release line-up for the rest of 2022 and 2023. The company recently joined forces with its subsidiary Codemasters to launch
EA SPORTS FIFA in July 2022. With new and updated circuits, Adaptive AI, F1 Life, and expanded gameplay options, the July launch will likely boost user engagement across EA’s platform. The company’s recent partnership with Middle-earth Enterprises, a division of The Saul Zaentz Company, on developing a new free-to-play mobile game is providing further excitement to religious gamers around the globe. The launch will also accelerate growth of EA’s mobile business. As a part of the partnership, EA will be adding to its ever-expanding mobile game portfolio a collectible role-playing game (RPG), The Lord of the Rings: Heroes of Middle-earth. The game will provide a combination of high-fidelity graphics, cinematic animations and stylized art to existing fans and new users. Moreover, the company has also announced that its globally popular football games will be moved under a new EA SPORTS FC brand in 2023, which will allow the company to deliver the biggest interactive sports experience for its growing community of users. Growth Prospects to Attract Competition
As per a
Mordor Intelligence report, the global gaming market was valued to be $198.4 billion in 2021 and is expected to grow at a CAGR of 8.94%, reaching $339.95 billion in 2027. Thus, growth in the video gaming industry will continue in 2022. The spending on video game hardware witnessed a 16% year-over-year growth in April 2022, per an NPD Group report by Venture Beat. These projections bode well for Electronic Arts in the near term. This Zacks Rank #4 (Sell) company also announced that its golf game, EA SPORTS PGA TOUR, is all set to release in Spring 2023. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Moreover, EA SPORTS PGA TOUR will be the only place where golf fans can play all four major championships, including the Masters Tournament, PGA Championship, U.S. Open Championship and The Open Championship. However, great prospects in the gaming industry also bring in intensifying competition for EA, from the likes of Take-Two Interactive ( TTWO Quick Quote TTWO - Free Report) , Zynga and Activision Blizzard ( ATVI Quick Quote ATVI - Free Report) . Activision will be launching Burning Hells in Diablo Immortal, the first Blizzard game designed from the ground up for mobile on Jun 2. Moreover, Activision is all set with three releases — Warcraft Arclight Rumble, World of Warcraft: Dragonflight, and World of Warcraft: Wrath of the Lich King Classic — to be launched later this year. TTWO’s publishing label Private Division has signed four new publishing agreements with leading independent game developers like Evening Star, Piccolo Studio, Yellow Brick Games and Die Gute Fabrik. All four unannounced titles, which are currently in development, will add to the Private Division’s portfolio of titles, including OlliOlli World, The Outer Worlds, the Kerbal Space Program franchise and many others. Zynga’s announced a collaboration campaign between its two flagship games, Harry Potter: Puzzles & Spells and Words With Friends 2.