This Is Electronic Arts' Next Big Growth Opportunity
Electronic Arts (NASDAQ: EA) is not the same business it was just a few years ago. Over the last two years, net bookings from in-game spending and subscriptions increased from 59% of the business to 71% on a trailing 12-month basis. The recurring nature of this live services revenue led Electronic Arts to initiate its first dividend toward the end of 2020.
While subscriptions are still a small part of the company's live services, it's in the early stages of growth. EA previously offered two subscription services with EA Access on console and EA Origin on PC, which are now part of EA Play.
Now, after launching EA Play on the Microsoft (NASDAQ: MSFT) Xbox Game Pass cloud gaming service, EA expects to gain millions of new subscribers.
Source Fool.com
