Video game developer and publisher,
Electronic Arts Inc. (
recently announced a number of new games from some of its
acclaimed studios. The games were showcased at the ongoing
Electronic Entertainment Expo (E3).
EA unveiled a number of new gaming titles that include sequels of
popular franchises such as
Madden NFL 25
Plant Vs Zombies Garden Warfare
Dragon Age Inquisition
Need For Speed Rivals
Command & Conquer
. EA unveiled the inaugural version of
and also announced the revival of
Developed by Respawn Entertainment;
will be available on
upcoming Xbox One and Xbox 360 as well as on PCs. The game is
scheduled to release in spring 2014.
Developed by DICE, EA is bringing back yesteryear favorite
(first released in 2008) for Microsoft's Xbox One as well as for
PlayStation 4. The game is currently in early stages of
development and will be supported by EA's frostbite technology.
Beside these popular franchises, EA revealed its new IGNITE
technology that will power EA SPORTS UFC, which is set to release
in spring 2014 for Xbox One and PlayStation 4. In 2012, EA bought
the licensing rights of Ultimate Fighting Championship (UFC) from
Based on its recent licensing agreement with
Walt Disney (
, EA also announced a new game called
STAR WARS: BATTLEFRONT
at the E3 show.
EA's gaming pipeline clearly reflects the company's focus on the
Xbox One and PlayStation 4. EA did not announce a single game for
Nintendo's platform, citing lower demand for the console compared
with Microsoft's and Sony's. We believe that strong pent up
demand for the upcoming consoles will further boost EA's sales
volume going forward.
Additionally, EA's high-quality titles and an innovative product
pipeline will boost its top line growth in 2014. We believe that
EA's strong digital portfolio and continuing growth in the
free-to-play and online segment will drive top-line growth in the
Moreover, the company's efforts to optimize costs through
overhead reductions will be beneficial going forward.
However, we believe that EA faces a number of headwinds that
include a soft video game industry performance, particularly due
to weakness in retail sales amid an aging console system
lifecycle. Competition from other game makers is also a headwind
Currently, EA has a Zacks Rank #2 (Buy).
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