Video game publisher Electronic Arts’ big bet on mobile games will be tested on Wednesday’s quarterly earnings as pandemics are relaxed and gamers leave the console. EA, the maker of FIFA 21 and Apex Legends, expects its mobile business to grow by more than 200% annual net bookings to $ 2 billion within the next three years.
“When it comes to the mobile gaming industry, it’s important to note that the’console’is in the user’s pocket,” said Jamie Bass, an analyst at Belenberg. Taking a vacation again, mobile games will continue to be an attractive and available entertainment option. The booming mobile gaming sector, the largest sub-segment of the broad industry in terms of revenue generation, has spawned EA, with rivals such as Activision Blizzard Inc making significant purchases. For EA, mobile games account for more than one-tenth of total revenue.
EA has spent billions of dollars acquiring Glu Mobile, UK-based Codemasters and Playdemic Ltd to expand its mobile gaming portfolio with more game titles. Consumer spending on video game hardware, content and accessories in the United States alone jumped to a record $ 56.9 billion in 2020, according to data from research firm NPD.
Joost Van Dreunen, a lecturer in the game business at New York University, said:
By acquiring a studio with a powerful mobile franchise, EA will be able to inherit its expertise and at the same time monetize its existing player base.
* Redwood City, CA-based EA is expected to see first-quarter revenue of $ 1.28 billion, down 7.8% from $ 1.39 billion in the previous year, according to Refinitiv’s IBES data.
* Analysts’ average estimate is 67 cents per share.
* The company’s stock, which rose nearly 34% in 2020, rose slightly this year.
EA Pin Expects New Mobile Games As Lockdown Boost Fade
Source link EA Pin Expects New Mobile Games As Lockdown Boost Fade