Did Star Wars Battlefront Push Electronic Arts Ahead Of The Game?
Estimize | Jan 28, 2016 02:00AM ET
Electronic Arts Inc (O:EA) Information Technology - Software | Reports January 28, After Market Closes
Key Takeaways
- The Estimize Consensus is expecting EPS of $1.83 and revenue of $1.804 billion, which is more optimistic than Wall Street’s forecast
- Sales of Star Wars Battlefront are expected to reach EA’s target of 13 million copies sold by March thanks to the success of the newest Star Wars movies
- EA’s newest PC only subscription service, Origin Access, grants PC gamers access to popular EA titles
Video game developer, Electronic Arts (EA ), is responsible for some of the most popular games ever made. Some of these games include the Madden, FIFA, and NHL franchises along with several others. The Redwood City, CA based company is set to report its FQ3 2016 earnings tomorrow after the market closes.
This quarter, EA is poised for another earnings surprise due to its success in video game sales and a new Netflix (O:NFLX) like PC gaming service.
Star Wars Battlefront, one of 2015’s most highly anticipated games, was released last quarter with mixed reviews. Despite being on shelves for only 2 months, Battlefront finished the year in the top 10 video games sold along with EA’s Madden 16. The company has held firm to its pre-Battlefront release forecast of 13 million copies sold by March 2016. With an impressive lineup of new games to be launched in 2016, analysts remain bullish on the outlook of the company.
Earlier this month, EA launched a Netflix like subscription based service catering to PC gamers. EA Origin Access grants members access to new games prior to their launch, popular older titles, and discounts towards games. This new model is thought to be an extension of EA Origin and EA’s online PC game store, which currently caters to over 50 million users.
EA claims Origin Access was developed after feverish demand for the company to “go digital”. Over the past few years, purchasable digital content has gained serious momentum. In 2014, digital game sales accounted for $1.4 billion in revenue, roughly 10% of EA’s global sales. In just a year, digital game sales increased to $4.8 billion and 20% of global sales. EA has been a pioneer in digital video game content, evidenced by its constant and substantial revenue stream.
Get The News You Want
In a concentrated industry, EA faces stiff competition from fellow video game publisher, Activision . Activision produces one of the most popular video game franchises ever, Call of Duty, which made its return during the holiday season. In its opening weekend, Call of Duty: Black Ops III sold over $550 million worth of copies. Activision has also joined the booming mobile gaming industry with its over the top acquisition of industry leader, King Digital. For both EA and Activision, the mobile game industry has the highest earning potential and is projected to reach $45 billion in revenue in the next two years.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.