Things are going well for Electronic arts (NASDAQ: EA). The company has recorded consecutive quarters of robust growth in its live service business, which includes subscription revenue and in-game spending. This has boosted inventory by 22% over the past six months.
During this time, Star Wars: Battlefront 2 receives praise from critics after EA quietly updated the title with new content. It’s a strange reversal for a title that was beaten by the gaming community a few years ago because of the aggressive strategy of locking much of the game’s most desirable content behind a pay wall.
This franchise turnaround could give investors a glimpse of how EA’s internal operations have also improved in recent years and why the company is currently enjoying strong momentum.
EA learned from its mistakes
If you’ve been following EA, you might remember the controversy over Star Wars: Battlefront 2 when it was released in November 2017. In an effort to boost sales, EA pushed players to buy loot boxes in the hope that the desired item would drop, for example by unlocking the ability to play as a game popular. Star wars character like Yoda or Darth Vader in the game’s online multiplayer mode.
This pay-to-win approach has been a drag for fans. Many did not buy the game, and sales of Battlefront 2 fell short of EA’s expectations that year.
Star Wars: Battlefront 2 is a completely different game today. EA has removed all payment mechanisms to win and made all content available for free. Additionally, EA has added more maps and other content for multiplayer. CEO Andrew Wilson spoke about the momentum the game is enjoying on the fiscal third quarter conference call.
“Two years and dozens of content updates later covering all three and more trilogies, critics have re-rated the game with high scores, player sentiment is outstanding, and the Celebration Edition has helped improve the performance of Battlefront 2 it was significantly above our expectations for the third quarter, ”Wilson said.
This is in addition to the strong sales figures announced for the latest version, Star Wars Jedi: Fallen Order, which is on track to sell 10 million copies for the fiscal year ending March. It’s better than management’s initial expectations for sales to reach up to 8 million copies.
On the recent call, Wilson elaborated stating that “Star Wars Jedi: Fallen Order was the action-adventure game fans were looking for this holiday season. our projections for the quarter. ”
In addition, others Star wars the games work well too. “Our communities in both Star Wars: Galaxy of Heroes and Star Wars: The Old Republic thrive, too, ”Wilson said. He further explained that “the power of Star wars the franchise continues to endure and grow across generations and geographies, and we look forward to building on our momentum with Disney and Lucasfilm. ”
Back in the good graces of gamers
Battlefront 2 probably doesn’t contribute much to revenue, but the improvements to the game reveal a business that has adapted to what gamers want, and that’s probably one of the reasons for spending on live services across the board. the company’s games have climbed 27% in the past year to $ 2.8 billion.
Battlefront 2 is currently available at a significant discount from its original price of $ 60. Gamers can also access it through an EA Access subscription, a service management hopes to stimulate the growth of live services in the long term. The additional content added to the game should serve as an attraction to attract more subscribers.
More importantly, EA seems to have come a long way to redeem its branding with outraged gamers in 2017. EA may have undermined its reputation with the design decisions made with the launch version of the game, but this image marked seems to be fading now.
Battlefront 2 it’s better, the live services industry is showing big numbers, and that has what growth stocks climb again.
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