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Electronic Arts (EA) to Launch Sims 4 Get Famous on Nov 16

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Electronic Arts (EA - Free Report) recently announced that The Sims 4 Get Famous expansion pack will be launched on PC and Mac on Nov 16.

Get Famous has new gameplay features that introduce the Sims to new careers and lavish lifestyles among others. As they take part in the game, the expansion pack gives users the chance to experience stardom by becoming “influencers or traditional film and TV stars.”

Additionally, Del Sol Valley, a city for the Sims to experience the fame, will be available in the expansion pack. Moreover, EA has partnered with “musician and social media star Baby Ariel” to create her Sim version.

The company said that users can catch the star performing in the glam city, Del Sol Valley and public spaces. Notably, The Sims 4 Seasons expansion pack was launched on PC and Mac on Jun 22.

Electronic Arts Inc. Revenue (TTM)

 

Electronic Arts Inc. Revenue (TTM) | Electronic Arts Inc. Quote

Sims Contribution to Revenues

The Sims is one of the most important revenue generators for EA.  In fiscal 2018, there were 80 million active Sims players across PCs and mobiles.

The Sims 4 community, which has been growing even after four years of launch, is expected to get a further push following the launch of Get Famous. Notably, player base for the PC and Console-version, The Sims 4, grew more than 35% year over year, in the last reported quarter.

Moreover, EA expects The Sims 4 expansion packs for PC and console version to be one of the key drivers of live services net bookings in fiscal 2019.

Further, the company’s recently released titles such as FIFA 19, NHL 19 and NBA LIVE 19 are expected to boost player engagement levels.

Notably, higher engagement levels drove digital revenues, which contributed significantly to EA’s top line (more than 84%) in the last reported quarter.

Competition Stiff

With the global gaming industry market increasing exponentially year over year, EA’s competitors like Activision (ATVI - Free Report) and Take Two Interactive (TTWO - Free Report) are taking increasing initiatives to capture share.

Notably, the global gaming industry is expected to be worth $137.9 billion in 2018 and $151.9 billion in 2019, per Newzoo.

Upcoming releases of Take Two Interactive’s Red Dead Redemption 2 and Activision’s Call of Duty: Black Ops 4 are expected to put pressure on EA’s top line.

Additionally, apart from launching popular games, Activision is also striking deals with the likes of Amazon (AMZN - Free Report) , Disney and Twitter. The deals are helping the company to make its content easily available to a wider audience. This does not bode well for EA.

Moreover, the delay of Battlefield V release is expected to hurt EA’s fiscal 2019 revenues.

EA currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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