One Reason Why Electronic Arts Can Continue Moving Higher

The gaming market accounts for one of the most rapidly growing markets, and the gaming companies have been capitalizing on this trend by upgrading the graphics and features of new upcoming games. At present, Electronics Arts (EA) and Activision Blizzard (ATVI) are the two most significant players of the gaming industry. As a matter of fact, both Electronics Arts as well as Activision are situated with almost similar growth prospects.

In the case of Electronic Arts, the yearly sports titles accounts for the most significant thing for the company, and this is why I am more bullish on the stock going forward.  However, the company’s latest version of FIFA, “FIFA 16” till date, hasn’t performed as well as its predecessor “FIFA 15”.
The company expects FIFA 16 sales to be 8.2 percent lower than those of FIFA 15. If this happens, it would be the first decline for FIFA after a long time.

However, FIFA 16 was not launched on any handheld devices, whereas FIFA 15 was launched for handheld devices. This could be the reason behind the declining sales of FIFA 16. Furthermore, FIFA 16 was not launched on Wii also, while FIFA 15 was.

As a matter of fact, the company is well aware of the declining sales, and it can be certainly said that it is putting in a lot of effort to regain the sales momentum. Electronic Arts’ upcoming FIFA installment, FIFA 17, is scheduled to be launched on 27th of next month. In the case of FIFA 17, the company has decided to use its Frostbite engine.

The company will witness huge benefits by using the Frostbite engine as this could provide a new and fresh start to the game. Another significant advantage is that Electric Arts should also be able to reduce cost by using Frostbite engine, as this engine is also used by the company for Battlefield 1, etc.

Apart from this, Electronic Arts is also on its way to launch “Titanfall 2”. Moreover, Titanfall 1 was launched for Xbox and Windows platform exclusively, but this time, Titanfall 2 will also be launched for Sony’s PlayStation 4 console.


Despite the FIFA sales decline, Electronic Arts has continued moving higher over the last few weeks. Moreover, after a year of sales decline, it is highly likely that Electronic Arts will work extra-hard on greatly improving the game. In addition, FIFA sales tend to be higher whenever there’s an international soccer event, and given that the UEFA EURO was hosted this year, FIFA sales could rise considerably next year.
Published on Aug 4, 2016
By Akshansh Gandhi

Copyrighted 2020. Content published with author's permission.

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