“The margins on Madden Ultimate Team are through the roof,” said James Hardiman, an analyst with Longbow Research LLC who has a buy rating on the stock.
Ultimate Team sales could total more than $50 million and those of the game itself about $300 million, said Creutz, who also rates the stock a buy. For EA, “the opportunity is to get more dollars per unit.”
Revenue from extra content for all its games may reach a record $1 billion this year, according to the company. Madden NFL 15, along with other sports titles, will be a “major contributor,” said John Reseburg, a spokesman for EA. He declined to comment on whether sales would continue to be as strong as they’ve been: Madden NFL extra content revenue grew 350 percent in the quarter ending June 30 from a year earlier.
Ultimate Team sales could total more than $50 million and those of the game itself about $300 million, said Creutz, who also rates the stock a buy. For EA, “the opportunity is to get more dollars per unit.”
Revenue from extra content for all its games may reach a record $1 billion this year, according to the company. Madden NFL 15, along with other sports titles, will be a “major contributor,” said John Reseburg, a spokesman for EA. He declined to comment on whether sales would continue to be as strong as they’ve been: Madden NFL extra content revenue grew 350 percent in the quarter ending June 30 from a year earlier.
Keep in mind that the $1 billion figure is for all games in the EA lineup. This includes all sports titles, the Battlefield franchise, The Sims, and countless other titles.
(via Bloomberg)