Electronic Arts Inc, is awaiting the result of the big bet on its mobile game business. The video game publisher will be posting its quarterly results on Wednesday, which will further show the significance of its mobile game business on the company’s performance, especially at a time where gamers have started to leave their consoles to step outside.
EA, the maker of “FIFA 21” and “Apex Legends”, expects its mobile business to grow more than 200% to $2 billion in annual net bookings within the next three years.
EA spent billions of dollars to acquire Glu Mobile, UK-based Codemasters and Playdemic Ltd, to bulk up its mobile gaming portfolio with more gaming titles.
“When it comes to the mobile gaming industry, it is important to note that the ‘console’ is in the user’s pocket,” Berenberg analyst Jamie Bass said.
“Whether one is on the bus to work or waiting in an airport terminal to finally go on holiday again, mobile games remain a persistently tempting and available entertainment option.”
The booming mobile gaming sector, the largest sub-segment of the broader industry in terms of revenue generation, has made EA and rivals such as Activision Blizzard Inc make significant purchases.
For EA, mobile games make up for more than a tenth of its overall revenue.
Consumer spending on video game hardware, content and accessories in the United States alone jumped to a record $56.9 billion in 2020, according to data from research firm NPD.
Acquiring studios with strong mobile franchises will enable EA to inherit the expertise and monetize on the already existing player base at the same time.
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