Electronic Arts Inc (EA.O), which publishes popular video games like “FIFA” and “Madden NFL,” had its stock price rise by approximately 3 percent after the market closed on Tuesday, as the company’s fourth-quarter bookings above analysts’ expectations due to continued consumer interest in these franchises.
EA and its competitors, such as Take-Two Interactive Software Inc (TTWO.O) and Activision Blizzard Inc (ATVI.O), have shifted their focus to the fact that gamers are becoming more picky about the games they purchase as a result of rising inflation.
“Historically, our biggest brands like FIFA, Madden, and The Sims have done exceptionally well during these periods,” EA CEO Andrew Wilson stated.
In addition to “Star Wars Jedi: Survivor,” the business announced that “Lord of the Rings: Heroes of Middle Earth” and “Madden 24” will be available in the fiscal year 2024.
“Console and PC dollars are gradually shifting towards the most high profile franchises, and EA has some of the most high profile IP there,” said Nick McKay, an analyst at Wedbush Securities.
Chief Financial Officer Chris Suh announced that EA’s net bookings for the fourth quarter totaled $1.95 billion, above Refinitiv projections of $1.76 billion, thanks to record live services and strong engagement, especially from the “FIFA” brand.
Data from market research firm Circana shows that three of EA’s products, including “FIFA 23” and the sci-fi horror game “Dead Space,” were in the top 10 best-selling games in the first three months of the year.
As the long-running cooperation between Electronic Arts and FIFA ends, the firm plans to release a rebranded version of the game under “EA Sports FC” this year. The redesigned game is expected to increase net bookings by a low single-digit percentage in fiscal year 2024.
Net bookings for fiscal 2024 are expected to be at $7.52 billion, although EA predicts they will be between $7.30 billion and $7.70 billion. The prognosis for bookings in this quarter was in line with projections.
