Did Star Wars Battlefront The Push Electronic Arts Ahead Of The Game?

Electronic Arts Inc. (EA) Information Technology – Software | Reports January 28, After Market Closes

Video game developer, Electronic Arts (EA), is responsible for some of the most popular games ever made. Some of these games include the Madden, FIFA, and NHL franchises along with several others. The Redwood City, CA based company is set to report its FQ3 2016 earnings tomorrow after the market closes.

This quarter, EA is poised for another earnings surprise due to its success in video game sales and a new Netflix like PC gaming service.

Star Wars Battlefront, one of 2015’s most highly anticipated games, was released last quarter with mixed reviews. Despite being on shelves for only 2 months, Battlefront finished the year in the top 10 video games sold along with EA’s Madden 16. The company has held firm to its pre-Battlefront release forecast of 13 million copies sold by March 2016. With an impressive lineup of new games to be launched in 2016, analysts remain bullish on the outlook of the company.

Earlier this month, EA launched a Netflix like subscription based service catering to PC gamers. EA Origin Access grants members access to new games prior to their launch, popular older titles, and discounts towards games. This new model is thought to be an extension of EA Origin and EA’s online PC game store, which currently caters to over 50 million users.

EA claims Origin Access was developed after feverish demand for the company to “go digital”. Over the past few years, purchasable digital content has gained serious momentum. In 2014, digital game sales accounted for $1.4 billion in revenue, roughly 10% of EA’s global sales. In just a year, digital game sales increased to $4.8 billion and 20% of global sales. EA has been a pioneer in digital video game content, evidenced by its constant and substantial revenue stream.

In a concentrated industry, EA faces stiff competition from fellow video game publisher,Activision. Activision produces one of the most popular video game franchises ever, Call of Duty, which made its return during the holiday season. In its opening weekend, Call of Duty: Black Ops III sold over $550 million worth of copies. Activision has also joined the booming mobile gaming industry with its over the top acquisition of industry leader, King Digital. For both EA and Activision, the mobile game industry has the highest earning potential and is projected to reach $45 billion in revenue in the next two years.