Yahoo Finance Why Electronic Arts isn’t threatened by mobile gaming development
Electronic Arts: Market leader or 'Worst Company in America'? (Part 10 of 14)
Mobile Gaming Development is increasing
Market expansion in the gaming industry, coupled with increasing gamer interest, is expected to benefit Electronic Arts’ (EA) mobile gaming division. EA’s peers, like Take-Two Interactive Software (TTWO), Ubisoft Entertainment, and Activision Blizzard (ATVI), are also building studios to target mobile gaming operations in order to strengthen their presence.
You can consider investing in the PowerShares QQQ Trust (QQQ) and the Technology Select SPDR (XLK) to gain exposure to Electronic Arts. EA makes up about 0.35% and 0.47% of these ETFs, respectively.
The exponential growth and increased penetration of smartphones and tablets are a concern for EA’s growth, as EA derives the majority of its revenue from traditional physical and digital sales for PC and home consoles. However, according to Blake Jorgensen, the chief financial officer (or CFO) of Electronic Arts, “the ever growing popularity of mobile gaming is actually not a threat to traditional consoles and in fact it might benefit the consoles—Xbox One and the PlayStation 4—in the long term.”
Sony pioneered disc-based consoles, whose demand is decreasing but which, to date, remain the most popular gaming platform.
Battlefield 4, developed by DICE, could deliver a multiplayer mode on home consoles and on PCs that can’t be replicated on mobile devices. Mobile devices do offer a quick route to gameplay, but the experience is way behind consoles and PCs.
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