Electronic Arts Inc (NASDAQ:EA) looking for “console”ation from Xbox One and PS4 sales
Electronic Arts Inc (NASDAQ:EA), the video games publisher is banking heavily on some boost from the PS4 and Xbox sales to bring in some semblance of equilibrium into its media and digital businesses. Just like almost every other traditional boxed video-game maker, EA too has suffered badly in recent times from the humungous transitioning from to mobile and online gaming. This segment is expected to touch $14.4B by 2017 from the $8.8B that it stood at last year.
All’ well at EA
Peter Moore, EA’s Chief Operating Officer said that the company actually sees growth in its plan for physical boxed-games. The idea that physical media has bitten the dust is a fallacy at this point of time. He went on to say that there is actually going to be some growth at least in EA’s hallways. MSFT and SONY will commence sales of their consoles by this autumn which will intensify the competition much ahead of the critical pre-Christmas season. Sony has priced its PS4 $100 less than Sony’s Xbox One which will cost $499.
Heartening research data
The new consoles are arriving at an opportune moment for the video-games industry, which has been grappling with stemming the revenue dip in the past few years. NPD, the industry tracker says that the sales of video game software and hardware have dropped every single month on a y-o-y basis since 2012 January.
The equilibrium quotient
PricewaterhouseCoopers the research consultant has put forth some data that suggests that the video game market, globally, will touch $86.9B in 2017. Consumer spending on console-games will rise to $31.2B in 2017 from the $24.9B that they stood at in 2012. Online offerings, mobile games and new digital-sales streams added up to over 76% of EA revenue in the 2013 Q1. However, the PS4 and Xbox sales should be able to add more equilibrium.