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Will This Gaming Stock Continue Getting Better?

August 29, 2014 | About:

Electronic Arts (NASDAQ:EA) is capitalizing on new gaming consoles. Determined by a famous and fluctuated arrangement of games that includes Battlefield 4, Titanfall, and FIFA 14, EA has made solid gains this year. The stock is now up almost 60% in 2014, and a closer look at its pipeline will demonstrate why it can go higher despite exchanging close to its 52-week highs.

EA is seeing tremendous development. Its income has multiplied year-over-year due to robust development in mobile gaming and console development. The organization posted record mobile revenue of about $460 million for the fiscal year.

An interesting pipeline to sustain the momentum

EA is looking to exploit the FIFA Soccer World Cup fever with the approaching FIFA 15 game. The organization promises that this game will convey leap forward advancement, and build on the experience that the FIFA franchise has conveyed to players so far. Also, this the organization has high hopes from its latest dispatch, EA Sports UFC.

EA has leveraged the force of the EA Sports Ignite gaming motor, and the graphics capabilities of the new consoles, to convey genuine athleticism, feeling, and intensity of UFC. Besides, the game features Bruce Lee, who is viewed as the father of the combative technique, and this move has made the game well known with fans around the globe. UFC has as of now gotten off to a strong start, ousting Watch Dogs from the most obvious spot in areas such as Britain.

Its release pipeline looks strong. For instance, in October, the organization is set to dispatch Dragon Age: Inquisition. This is a character-determined, epic story, in a visually astonishing open world. As per EA, it is the most immersive RPG made in the history of EA's Bioware studio.

In the third and the final quarters, the organization will dispatch two more EA Sports titles – NBA LIVE 15 and another EA Sports golf game. NBA LIVE 15 is, no doubt, created by EA's Tiburon studio, where developers are currently taking gamer criticism to enhance the game. Then again, the golf game will be a first era release for EA, and is, no doubt, made by its advancement group in Florida.

Profiting from the console war

This cross-stage strategy should work well for EA going ahead, as console sales are relied upon to rise at a quick rate. As per analysts at Wedbush Morgan, sales of Sony's (NYSE:SNE) PS4 before the end of 2014 are expected to hit 12 million units, while Microsoft's (NASDAQ:MSFT) Xbox One is expected to clock a sales figure of 9 million units. The long haul forecast also looks brilliant.

Microsoft, in the interim, is attempting to boost Xbox One sales by pushing its gaming bundles aggressively. It is presently offering a $75 credit to Xbox 360 users to sway them to move up to the latest version. Microsoft is right now slacking Sony in the console war. This console war should demonstrate advantageous for EA, as Sony and Microsoft keep pushing their fittings.


EA's focus on conveying forefront gameplay to users has helped it perform well so far. The organization is on track to sustain this energy going ahead, and the normal development in console sales will be a key tailwind. Considering EA's prospects, there's a strong likelihood that it can keep rising and break past its 52-week high.

Rating: 5.0/5 (1 vote)



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