How Electronic Arts Will Benefit From New Consoles
This holiday season will see new gaming consoles launch from Sony and Microsoft. The last console launch from these companies in 2013 was good for video game stocks. Activision Blizzard, Take-Two Interactive, and Electronic Arts (NASDAQ: EA) saw their share prices soar. The worst performer was Activision Blizzard, which still saw its share price nearly double between the end of 2012 and 2014.
An analyst with KeyBanc recently issued a positive note on the near-term prospects for Activision and Take-Two based on their announced game slates. At BlizzCon in 2019, Activision announced Overwatch 2 and Diablo 4, but specific release dates were not given. Take-Two recently disclosed an impressive pipeline of 93 titles planned for release over the next five years, although the company admitted that some of them won't make it to completion. All said, investors like it when video game executives are transparent about where growth is expected to come from.
That's why some investors might be skeptical about how well Electronic Arts is positioned for the new console cycle. EA doesn't have much announced for its upcoming slate, other than new annual versions of its sports franchises and Star Wars: Squadrons.
Source Fool.com
