Gaming franchises are important
Gaming companies Electronic Arts (EA), Take-Two Interactive (TTWO), and Activision Blizzard (ATVI) bank heavily on successful franchises to drive revenue. A successful franchise can easily churn over a billion dollars for gaming companies. While EA has the FIFA and NFL sports franchises, Activision has the Call of Duty franchise. Take-Two has its blockbuster game Grand Theft Auto.
EA’s launches in fiscal 2019
EA anticipates that Anthem will be released early next year and is expected to drive revenue. It claims that the demo sessions for Anthem were encouraging and generated significant interest among fans.
EA’s Origin Access Premier was launched in August. It’s a subscription service that includes unlimited access to the latest PC titles. Similar to software companies, EA is targeting subscription services and recurring revenue.
During EA’s fiscal Q1 2018 earnings call, CEO Andrew Wilson said the company is creating new experiences by developing more IP and increasing its teams. He said EA is working with top creators in the gaming industry to increase the number of third-party games in its Origin Access Premier subscription service.