With a portfolio of some of the strongest brands in the entire industry, EA enjoys a diversified lineup of franchises like the Madden NFL, FIFA, Battlefront, and Medal of Honor games. This allows it to attract legions of loyal followers with each product launch, while also affording it enough product diversification to be dependent on a single flagship product to drive overall financial performance.
Digital gaming provides a nice growth tailwind for EA. With segment growth in the ballpark of 33% expected in the coming year and with the high-margin nature of the digital gaming business, digital represents a potential buoy for other struggling parts of EA’s overall gaming business.
With new console refreshes from Nintendo this year, and releases expected for both Microsoft’s Xbox and Sony’s Playstation platforms in coming years, EA could benefit big time from the increased demand that often occurs during console upgrade cycles