EA dominates the sports genre of the game industry, accounting for nearly 50% of sports game sales.
EA is expanding new segments such as online and mobile gaming, which should lead to healthy revenue growth.
EA’s new development engines (EA Sports Ignite and Frostbite 3) are driving down the costs of building high-quality games. Read more
EA could be spreading itself across too many projects and may not be able to provide adequate support to all of its titles.
The casual gamer demographic has been a major contributor to recent growth of the video game market. Despite recent investments, EA has traditionally been weak in the casual gaming segment.
EA competes with larger first-party video game publishers such as Nintendo, Sony, and Microsoft, which have greater resources and an institutional advantage in developing games for their own gaming consoles. Read more
Overall, we view EA's stewardship of shareholder capital as standard. The firm hired insider Andrew Wilson (the prior head of EA Sports) as CEO in September 2013, a move that has added stability during the current console cycle transition. Previous Read more
EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on Read more