It only recently announced a new license extension with the Union of European Football Associations (UEFA), which is the governing body of European soccer. As part of this agreement, EA will launch multiple mobile offerings within the FIFA franchise, such as a free-to-play PC model. The business believes these games can hit 80 million players in over 15 countries.
The impending deals to acquire Glu Mobile and Codemasters (LSE:CDM) will assist EA in this broad expansion strategy across EA Sports. Glu Mobile will help grow EA Sports franchises on cellular, given the achievement Glu Sports has experienced its Tap Sports Baseball franchise.
Wilson said on the recent earnings call this is just the beginning. EA is currently relaunching its school soccer business, which is now under development. There's also an expansion in a different sport, which Wilson wouldn't name, launching next fiscal year.
What is the monetary opportunity?EA estimates that the worldwide market for sports video games will be over $11 billion with $7 billion on the console and PC, while the market for mobile is around $ 4.3 billion. For perspective, EA's total bookings are anticipated to reach $6.1 billion in fiscal 2021 (which ends in March), which means the chance to learn more market share in athletics is a major development opportunity.
What is more, spending sports is growing faster than other game forms with mobile sports growing at a compound yearly rate of 24% over the last four decades. EA's aim to achieve 500 million players and audiences should not be sudden. The market for interactive entertainment has been rising as day one. New technology and approaches to play games like cloud-based subscription services and cellular platforms have just expanded the audience during the past decade and will keep doing so. The current acquisitions and new games in the pipeline supply this business leader with loads of catalysts during the upcoming few years. * And right now, they think there are 10 stocks that are better purchases.