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Game reboots key to future growth as EA seen posting record revenue

Gamers stuck at home due to fresh pandemic-induced restrictions boost demand for EA's sports titles "Madden NFL 21" and "FIFA 21" in the crucial holiday shopping season

Photo: REUTERS/Brendan McDermid
  • Investors will also be looking for details on the new version of its first person shooter game “Battlefield” and racing title “Need For Speed“;
  • EA and rivals Activision Blizzard and Take-Two Interactive Software have benefited from a surge in videogame sales during the pandemic.

Wall Street analysts expect Electronic Arts to report record quarterly revenue on Tuesday, as gamers stuck at home due to fresh pandemic-induced restrictions boost demand for its sports titles “Madden NFL 21” and “FIFA 21” in the crucial holiday shopping season.

Investors will also be looking for details on the new version of its first person shooter game “Battlefield” and racing title “Need For Speed“. Delays in “FIFA” and “Madden NFL 21” updates had hurt the company’s sales last year.

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“EA intends to launch 6 next gen games in FY2022, headlined by a new Battlefield game which is expected to anchor a more robust CY2021/FY2022 slate,” Stifel analyst Drew Crum said, adding that this year the company did not have a single action release.

What is the context for EA results?

EA and rivals Activision Blizzard and Take-Two Interactive Software have benefited from a surge in videogame sales during the pandemic.

READ ALSO: Electronic Arts outbids Take-Two with $1.2 billion deal for Codemasters

But faced with fierce competition, publishers need to keep refreshing their top-selling titles to attract new gamers and retain old ones. EA’s quarterly results will offer a clue on how its games held up against popular titles such as Activision’s “Call of Duty: Black Ops: Cold War” and Take Two’s “NBA 2K21“.

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