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Electronic Arts released EA Sports FC 27 on Friday, the second version of its flagship soccer game since dropping the FIFA name. This franchise is the engine of the company's business, and its success is a major part of why we think the stock is worth owning.
This year's game adds a new social mode called The Grounds and updates the gameplay based on player feedback. Because most of the money from these games now comes from in-game purchases throughout the year rather than just the initial sale, keeping players engaged with new modes is vital for steady growth.
Source: Business Wire
Electronic Arts released the latest version of its hockey franchise on Friday for PlayStation 5 and Xbox Series X|S. The new game features all 32 authentic arenas and updated playbooks to match how teams actually play on the ice.
While hockey is a smaller part of the sports portfolio than soccer or football, these annual releases are the core of the company's business. They provide a reliable stream of high-margin sales and keep players spending on digital content throughout the professional season.
Source: Business Wire
Electronic Arts and Hazelight Studios announced that their popular cooperative game, It Takes Two, will be available on the Nintendo Switch 2 starting October 15. The release includes a free upgrade for anyone who already owns the game on the original Switch, along with a pass that lets a second person play for free. While this is a single game release rather than a major franchise shift, it shows EA is moving quickly to support Nintendo's next-generation hardware. Bringing successful older titles to new consoles is a low-cost way for the company to keep earning money from its existing library of games.
Source: Business Wire
Electronic Arts announced a series of new and renewed partnerships for its upcoming soccer game, EA Sports FC 27. The update includes the return of Liga MX, Mexico's top professional league, alongside continued long-term rights for the German Bundesliga and several major European clubs.
These licensing deals are the foundation of the company's most important business. By securing exclusive rights to real-world players, teams, and stadiums, the company makes it very difficult for rivals to build a competing game that feels authentic. This helps protect the recurring revenue from in-game purchases, which now make up the majority of the company's total sales.
Source: Business Wire
Electronic Arts launched Madden NFL 27 today, bringing its cornerstone football franchise to consoles, PC, and mobile. For the first time, the series is also available on Apple Arcade, a subscription service that could help the game reach a wider audience of casual players.
This release is a key part of the company's annual cycle. These sports titles are highly profitable because they use a live-service model, where players continue to spend money on digital items and team-building throughout the actual NFL season. Steady growth in these yearly sports releases is essential for the company to maintain its record levels of net bookings, which is the total value of products and services sold.
Source: Business Wire
Management has missed its own profit targets in three of the last four quarters. This suggests the business is becoming harder to predict as it shifts toward year-round digital services.
| Expectation | |
|---|---|
| EPS | $2.04 |
| Revenue | $2.05B |
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