Since the beginning of April, millions of new players have joined the Electronic Arts EA player network. During the pandemic, gamers were highly involved and brought the company’s substantial income last quarter, but the question that investors have been lingering in is how long this continuous player activity may last.
Madden NFL 21’s latest sales data released on August 28 may hint at the answer. EA reported that sales of the new Madden increased by nearly 20% year-on-year in the first week after its release. In the new mode "Yard", more than 17 million games are also played more. At the same time, the demand for Madden 21 Coins is also increasing, and players want to get more Madden 21 Coins.
This is after the Madden NFL 20 experienced franchise record with the highest participation ever. Madden NFL 20 contributed to the strong growth of EA's field service business in the first quarter, with net bookings in the division increasing 61% year-on-year to $1.1 billion. On-site services include game spending on Madden and FIFA Ultimate Team.
In the last quarter, the number of players in "Morning American Football 20" increased by 140% year-on-year. This trend was also reflected in FIFA 20, which attracted 7 million new players. As COO Blake Jorgensen said on the earnings call in July: "This is significant because people who have played this game recently are more likely to buy a new game."
Madden seems to be so. CEO Andrew Wilson (Andrew Wilson) previously explained that sports and entertainment consumption is shifting from linear to interactive, which is the reason for the increase in sales of the latest version. He said: "During COVID-19, both trends are accelerating."
If there are any signs of Madden 21 sales, then EA may finally experience a very strong game fall, and field service revenue will continue to grow. The upcoming sports events include FIFA 21 on October 9 and NHL 21 on October 16. More ways to play with friends. "Wilson said in the last call.
Later this year, with the release of Sony PlayStation 5 and Microsoft Xbox Series X, EA will also provide updated versions of FIFA 21 and Madden 21. Given that the revenue and net bookings in the previous quarter were significantly better than the performance, management increased the full-year guidance prices for these indicators to 5.63 billion US dollars and 5.95 billion US dollars. For net bookings, this will be an 11% increase over the 2020 fiscal year (end of March).
The only warning is that because EA employees are making games at home, some of Madden's revenue may be delayed until next year due to some ultimate team activities being postponed. But this will only increase the performance of top video game stocks that have grown 17% so far next year. There will be no other impact, especially for players, as long as you can ensure that you have enough Cheap MUT 21 Coins, you will not be difficult in the game.