Electronic Arts (EA - Free Report) recently announced the acquisition of Industrial Toys, an independent game studio based in Pasadena, CA for an undisclosed amount.
Industrial Toys’ founder, Alex Seropian, with his 14 member team, has been credited with well-known mobile games such as Midnight Star and its sequel, Midnight Star: Renegade.
Leveraging Seropian’s expertise, EA is now expected to create new mobile gaming content that will help the company attract core mobile gamers going forward.
Acquisition to Deepen Roots in Mobile Space
EA’s acquisition is in line with the ongoing shift from physical to digital versions of video games. As consumers are increasingly spending more on smart phones and portable devices compared to traditional devices for playing online games, mobile games have become one of the fastest growing segments in the video game market.
The trend is evident from market research Newzoo’s data, which states that; more than 50% of the revenues will come from mobile games by 2020. Therefore, to cash in on the booming mobile games market, EA plans to expand its mobile portfolio after the success of Star Wars: Galaxy of Heroes and FIFA Mobile.
The company also launched The Sims Mobile worldwide on iOS and Android devices in the March quarter. Notably, The Sims is one of the most important revenue generators for EA with 80 million active Sims players across PC and mobile in fiscal 2018. Additionally, it is also gearing up to release a few more mobile games in the coming months.