Electronic Arts Apps Are Tops for iPhones
EA Mobile, a division of Electronic Arts Inc. (ERTS), a video game maker and publisher announced that among the top 20 gaming titles available on Apple Inc.'s (AAPL) iPhone 4, 12 were from the Electronic Arts mobile gaming division.
Electronic Arts believes that this rating shows the popularity of its brands among the consumers who use iPhone and other mobile devices.
Electronic Arts said that it is selling 16 of its most popular titles for download to iPhone users at lower prices ranging from $0.99 to $2.99. The discount will end on June 28, 2010.
Apple's iPhone 4 has a 3.5-inch display with a native resolution of 960 by 640 pixels. Commonly known as retina display, this is four times the pixel density of a typical LCD display at a whopping 326 pixels per inch, providing a higher resolution for players.
Apple's iPhone supports more than 100 features with a 3-axis gyroscope, enabling users to play games with a greater ease.
Electronic Arts recently released NCAA football for iPhone 4. This is the pioneer game developed specifically for iPhone 4, utilizing its new retina display. Players have the option to select from 55 colleges or can create a new one to play the BCS National Championship.
EA Sports-FIFA 2010, another Electronic Arts game in demand, allows users to play with any of 570 teams in 30 leagues using the iPhone's touch screen and accelerometer.
We believe popular titles such as 2010 FIFA World Cup South Africa, SCRABBLE, Tetris, MONOPOLY and BATTLESHIP will help Electronic Arts mobile division to achieve significant market share and top-line growth going forward.
Gaming industry is going through a key transition. With the introduction of smartphones, iPad, iPhone and PDA's, mobile gaming is becoming a main revenue earning market for the game companies.
According to research firm, DFC Intelligence, mobile gaming industry is expected to grow to $11.7 billion by 2014. The iPhone alone is estimated to constitute 24% of the total gaming software sales. In our view, this will be a most important growth driver for Electronic Arts.
Electronic Arts is poised for growth as it posted non-GAAP net revenue of $4.16 billion and had 27 titles that sold more than one million units in fiscal 2010.
However, Electronic Arts faces stiff competition from Activison Blizzard (ATVI - Snapshot Report), Take-Two Interactive Software Inc. (TTWO - Snapshot Report) and privately held Sony Online Entertainment LLC.
We believe Electronic Arts has a strong pipeline of products such as Medal of Honor, Dead Space 2, Need for Speed Hot Pursuit and Crysis 2 in the second half of 2010, which is anticipated to drive its top-line growth in the coming quarters.
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