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Electronic Arts (EA) to Feature Musqueam Artwork in FIFA 23

Electronic Arts EA recently announced that it will be collaborating with the Musqueam Indian Band to feature Musqueam culture in FIFA 23.

This will allow players to play at the Musqueam-inspired Volta Football Pitch and will also incorporate Musqueam cultural elements, including a Musqueam longhouse and artwork from Musqueam visual artists, carvers, designers and weavers.

Its feature to unlock Volta Football apparel and FIFA Ultimate Team (“FUT”) kits, designed by Musqueam artists, is expected to bring anticipation among players.

This collaboration not just promotes local creativity but also helps EA in creating meaningful connections with various communities and expanding its presence.

EA Expands its Footprints Through Various Tie-Ups

EA has been expanding its footprint in various parts of the world through partnerships and agreements.

The company has paved its way into countries like China and Korea by partnering with Tencent Holdings Ltd and Nexon Co. Ltd. These publishers provide players in those countries access to EA’s mobile and PC free-to-play games and charge them for additional content purchased within the game environment.

EA has entered into significant agreements with Sony and Microsoft MSFT to distribute its digital products and services, compatible with PlayStation and Xbox consoles, respectively.

The agreements also give EA the non-exclusive right to use the technology owned or licensed by Sony or Microsoft to publish its games on their respective consoles.

Electronic Arts Inc. Price and Consensus

Electronic Arts Inc. Price and Consensus
Electronic Arts Inc. Price and Consensus

Electronic Arts Inc. price-consensus-chart | Electronic Arts Inc. Quote

EA is receiving traction from Gen Z and Gen Alpha as EA Sports and Racing has become their primary source of entertainment.

EA Sports’ FIFA franchise has seen significant growth in mobile with daily active users growing 10% in first-quarter fiscal 2023 and FUT engagement growing nearly 40% year over year, which is well above the industry average.

The upcoming Madden NFL 23 and the most expansive FIFA game ever coming this fall is going to strengthen EA’s portfolio. The company expects net bookings for second-quarter fiscal 2023 to be $1.725-$1.775 billion.

EA Faces Stiff Competition in the Industry

However, EA’s first-quarter fiscal 2023 bookings of $1.3 billion declined 3% on a year-over-year basis. EA shares have declined 12.4% year to date compared with the Zacks Consumer Discretionary sector, which declined 39.9%.

EA, which currently has a Zacks Rank #3 (Hold), faces tough competition from Take-Two Interactive TTWO and Activision Blizzard ATVI.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Take-Two Interactive’s shares fell by 37.9% year to date. Its top line gains strong revenues from GTA and Red Dead Redemption and also from the acquisition of Zynga, which makes TTWO one of the largest publishers of mobile games. The company expects fiscal 2023 revenues to jump 73.3% year over year.

The shares of Activision Blizzard have risen 12.7% year to date, benefiting from an expanding user base of Call of Duty, Hearthstone, World of Warcraft and Candy Crush franchises.

ATVI is in talks of getting acquired by Microsoft in fiscal 2023. If successfully closed, this will be the greatest acquisition of Microsoft till date, allowing it to benefit from ATVI’s large and growing customer base.

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