Electronic Arts savvy digital strategies will compensate for recent woes
Electronic Arts (EA) is one of the world’s biggest, most respected, and most innovative video games developers. It’s at the forefront of most of the trends driving the industry, and has some of the world’s best creative properties – in gaming, or anywhere else for that matter! But one of those properties has recently stumbled: Star Wars.
Despite the recent controversy, EA’s share price is still up by 37% so far in 2017
SOURCE: Yahoo Finance
EA has developed a number of wildly successful Star Wars games over the years, but its latest title, Star Wars Battlefront II recently ran into trouble over the publisher’s reliance on “microtransactions” – letting players buy in game items and content with real-world money – rather than downloadable expansions (where players make a single, bigger transaction, to unlock new content). As a result, the company’s share price dropped. However, Wall Street is maintaining its outlook for the company’s digital segment (“Live Services”). Why?
The answer’s simple: EA is the best when it comes to understanding the trends towards digitization and downloading. On this occasion, it may have stumbled in its monetization efforts, but fixing this issue is, conceptually, pretty simple: it’s already pulled the offending microtransactions from the game, it either needs to find less offensive ones, or simply make some expansion packs to sell. Star Wars Battlefront II is the publisher’s big first-person shooter for this year – that means it’s going to pull out all the stops getting it right. And if any company can do it, its EA Games.
Dominion holds Electronic Arts in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.