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EA, Take-Two boost sales view as gaming boom going strong -Breaking

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© Reuters. FILE PHOTO A logo for Electronic Arts (EA), is displayed at the Electronic Entertainment Expo in Los Angeles, California on June 17, 2015. REUTERS/Lucy Nicholson/File Photograph

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(Reuters] -Electronic Arts Inc. and Take-Two (NASDAQ) Interactive Software Inc. Despite lockdowns, players logged on to their flagship games like “FIFA 22” or “Grand Theft Auto V” while they were locked out.

California-based EA shares surged nearly 3% during extended trading. It also reported a more than twofold jump quarterly adjusted sales. This beat expectations due to strong titles like “Apex Legends”, and “Madden NFL 22”.

According to the company, it is banking on the launch of “Battlefield 2042,” a warfare title. It said that the beta version had received strong engagement.

Blake Jorgensen, chief financial officer, stated that “we have created an even larger audience” and built a network of social contacts around them so they don’t disappear even though they are returning to work or spending more outside their home.

NPD data shows that U.S. consumers spent $14 billion on video gaming in the second quarter of 2018, an increase of 2% according to NPD analytics.

Take-Two has increased its adjusted annual sales outlook from $3.3 billion to $3.4 billion. This is due to strong demand for the key franchises, “Grand Theft Auto V”, NBA2K and “Red Dead Redemption 2”.

EA may also consider renaming the top-selling soccer franchise, “FIFA”, as it examines a rights arrangement with the sport’s international governing body.

Analysts believe that a name change in the franchise’s nearly three-decade history could make it more difficult to attract new players.

Jorgensen stated, “We’re taking a break to determine if he should quit the licensing or rebrand it.”

EA expects full-year adjusted revenues of $7.63 trillion, as opposed to $7.40 billion in the past. Refinitiv data shows that analysts had predicted $7.59 billion.

Activision Blizzard, a rival (NASDAQ:), on Tuesday predicted quarterly adjusted sales lower than expected and delayed the release of the two eagerly awaited titles.

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