Electronic Arts (EA) recently announced a new digital expansion pack for Star Wars: The Old Republic called Shadow of Revan, which will be available from Dec 9. EA is also offering a number of bonuses and special rewards to attract hardcore gamers.
Per EA, Shadow of Revan “offers five new levels of story-driven missions, an increased level cap of 60, new worlds to explore, high-level multiplayer Flashpoints and Operations to join with friends in dynamic challenges and much more.”
New gamers, pre-ordering by Nov 2 will get early access to the expansion pack (from Dec 2), a statue of Revan and Rise of the Hutt Cartel digital expansion as an additional game. While those pre-ordering by Dec 1, will receive the statue and Rise of the Hutt Cartel digital expansion pack.
The expansion pack is EA’s latest initiative to boost the game’s popularity, a free-to-play version of which was launched back in 2012. This was followed by the first digital expansion pack called Rise of the Hutt Cartel in Apr 2013. Galactic Starfighter was the next expansion that was offered as free-to-play in Feb 2014. In March, EA released a new digital expansion pack Galactic Strongholds.
By releasing new expansion packs every year, EA seeks to capture gamers’ imagination and to keep their interest in the franchise alive. So far, the company has always benefited from the launch of digital content and expansion packs. Although it offers these packs for free, EA earns revenues through micro-transactions and advertisements.
In the first quarter of 2015, revenues from extra content increased 19% year over year to $211 million. Overall, digital revenues jumped 28% year over year to $482 million in the quarter. We believe that with a wide array of titles and massive fan following, EA is better equipped to gain traction in the free-to-play segment than most of its peers.
Moreover, its innovative product pipeline will continue to boost EA’s market share over the long run. Titles like FIFA 15, Madden NFL 15 and The Sims 4 on new consoles are expected to boost its top line for the rest of fiscal 2015. However, the postponement of Battlefield past the holiday season will negatively impact top-line growth in the near term.
EA’s strong digital portfolio and continuing growth in the tablet and smartphone market are the key growth catalysts. However, the company faces a number of headwinds, including significant competition from other game makers such as Gluu Mobile (GLUU), Activision Blizzard (ATVI) and Take-Two Interactive (TTWO).
Currently, EA has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment