Video game developer and publisher
Electronic Arts (
EA
)
recently unveiled expansion and stuff packs for
The Sims 3
franchise, scheduled to release in 2013 on PCs.
The Sims 3 70s, 80s & 90s
stuff pack is the first of the lot and will be followed by a
couple of expansion packs namely
The Sims 3 University Life
in March and
The Sims 3 Island Paradise
in June 2013.
The Sims 3 70s, 80s & 90s
is the eighth stuff pack for
The Sims 3
, which offers clothes and stuff of these decades that players
can use to decorate their characters. The pack is set to release
on January 22 in the US and on January 24, 2013 in Europe.
The Sims 3 University Life
Limited Edition
pack enables gamers to attend university in an all-new college
town. The pack contains a new party pack and is already available
for pre-order. The second expansion pack,
The Sims 3 Island Paradise
allows gamers to set sail in search of new uncharted islands. The
game offers tools, which players can use to build their own
resorts.
Moreover, EA announced another untitled stuff pack, set to
release in the fall of 2013, which will offer clothes and stuff
used in various movie sets. Additionally, the company expects to
release another untitled expansion pack at the same time that
will enable The Sims characters to travel to the future.
The Sims franchise was released in 2000, and ever since, EA
has sold more than 150 million copies of the game and its sequels
in 22 languages across 60 countries around the world. To date,
the game has generated more than $3 billion in revenues for EA.
We believe that the new expansion packs will boost revenue growth
going forward.
Lately, the frequent release of expansion packs and
downloadable contents (DLCs) have been the lifeline of aging game
franchises. The regular updates not only keep the customer's
interest in the games alive but also contribute significantly to
the publisher's and developer's top-line growth.
So far, EA has always benefited from the launch of expansion
packs and DLCs for most of its famous franchises. For instance,
revenue from extra content and free-to-play shot up 34.0% year
over year in the second quarter of 2013.
We believe that EA's high-quality titles and a robust product
pipeline along with the increasing online exposure and traction
in the social and mobile gaming market will boost its top-line
growth over the long term.
However, we remain cautious on EA due to its sluggish consumer
spending, dismal video game sales and increasing competition from
Activision (
ATVI
)
. Considering these factors, we have a Neutral recommendation on
EA over the long term.
Currently, EA has a Zacks Rank #4 (Sell).
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