Electronic Arts: a winning game group

Video games are one of the most rapidly expanding forms of entertainment. Thanks to improving technology, today’s games are far more immersive than they were even a decade ago, which helps them compete with alternative forms of entertainment, such as television. The demographics of gaming are changing; middle-aged people who grew up with computer games still enjoy them. Throw in new technologies, such as virtual reality (VR) and the advent of eSports, and it’s no wonder a recent report by consultancy PwC estimated that the sector’s total revenue will exceed $300 billion by 2028. One company already benefiting from this is Electronic Arts (Nasdaq: EA).

Electronic Arts is one of the largest video-game studios. It is involved with some of the biggest franchises in the industry. These include the Battlefield and Sims series of games, as well as Sports FC and various other sports franchises, such as the Madden series. While people can still buy individual games, EA also offers a subscription service whereby people can access a library of EA’s top titles for a monthly or yearly fee. Combined with the ability to purchase additional features for each title, such as extra stadia or team uniforms in its sports games, this gives Electronic Arts a recurring income stream.