The gaming giant Electronic Arts, Inc. was founded in 1982 and was one of the first companies to make computer games in the early dawn of computers. Now it is the third largest gaming company by revenues, followed by Nintendo and Activision Blizzard.
Here are 5 must know facts for investors in EA stock:
1. The gaming industry could be bigger than the Movie industry!
There are many ways to measure the size of each industry, no doubt both industries generate huge incomes. But the video game industry is on a constant growth trend, and doesn’t seem to be suffering from the problems of the movie industry. Pirating is much less common in the gaming industry as most video games are now online and are seen more as a ‘service’ than a product that you buy one time.
2. EA’s Top selling game
Electronic Arts’ top selling game is “The Sims” which have sold more than 175 million copies, making it the most successful PC game of all time! The game has been so successful that it has been awarded five world records in the Guinness World Records Gamer’s Edition.
3. Lionel Messi
The Barcelona based mega star has signed a multi-year contract with EA, which will make him the face of their number one selling game, FIFA. Messi was previously signed with Konami (Pro Evolution Soccer), FIFA’s biggest competitor, but was snatched from them in 2012. The soccer series has been also very successful, the game has been localized and translated to 18 languages.
2013 was big year for EA as the stock gained almost 60% during the year and the posted revenues amounted to $3.8 Billion!
*Past performance is not an indication of future results.
5. PopCap Games
In 2011, EA purchased the online gaming company PopCap, which is behind the addictive hit games such as – Zuma, Bejewled and Plants vs Zombies. The purchase was made at around $1.3 billion. This deal is quite important for EA, as it is a way to reach a different type of audience than the typical EA gamer.
What to look for in 2014?
In two words: selling games. The stock’s performance is correlated with sales performance and the market reactions to the games. The biggest release for the upcoming year will be The Sims 4. This release is crucial for this year’s stock performance, as the Sims series is still EA’s top selling game.
Note: Past performance is not an indication of future results. This post is not investment advice. CFD trading bears risk to your capital.