Video game maker
) seems to have hit the bull's eye with the launch of Plant vs.
Zombies 2. Following the launch, EA offered gamers a glimpse of
the new console version of the game that would be available on
Xbox One next spring.
EA had been banking on the new free-to-play game, hoping to
rake in profits through in-game transactions instead of paid
downloads. Recent statistics provided by the company at the
Gamescon conference indicate that EA is seeing strong demand,
with the game being downloaded more than 16 million times on the
iPhone and iPad within a week's time and gamers spending well
over 25 million hours playing. This apart, it is also the "top
grossing" iPad app on Apple's App Store and ranks #19 on the list
of the top grossing titles for iPhone.
PopCap Games, a unit of EA, recently launched "Plants vs.
Zombies 2″ for the iPhone and iPad. This game was initially
launched on the PC platform in 2009 and got a boost with the
launch of the first iPad in 2010.
A couple of months back,
) revealed their next generation gaming machines at the
Electronic Entertainment Expo in Los Angeles. This influenced
game makers such as EA,
Ubisoft Entertainment SA
Activision Blizzard Inc.
) and others to display their holiday line-ups.
EA, the second-largest video-game maker in the U.S. is also
hopeful about its yet-to-be released shooter game "
," and its soccer title "
", both of which are also expected to be very popular.
According to market research firm Super Data, in Jul 2013,
revenues from mobile games soared 32.0% year over year to $271.0
million, which indicates consistently higher spending. King's
Candy Crush Saga
War of Heroes
were leading apps, followed by Kabam's
The Hobbit: Kingdoms of Middle Earth
The free-to-play subscriber base declined slightly to 45.8
million from 46.0 million in June. However, the average revenue
per user ("ARPU") was approximately $40, much higher than the $27
reported in June.
We believe that EA is well-positioned to grab this huge growth
opportunity based on its innovative product pipeline and
increasing user base. However, the fragmented video game industry
and increasing competition are major headwinds, going
Electronic Arts has a Zacks Rank #3 (Hold).
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