Electronic Arts’ (NASDAQ:EA) latest battle royale (BR) game Apex Legends continues to smash its rival Epic Game’s Fortnite records and bolster its position in the BR genre.
Per reports, the game has garnered 50 million players within a month of its release compared to Fortnite, which reached the 40 million mark after four months.
Moreover, Apex Legends witnessed 25 million downloads in its first week of release alone compared to Fortnite’s record of 10 million downloads over two weeks, post its launch in 2017.
Apex Legends Vs Fortnite: Battle Intensifies
Fortnite is a predominant game in the battle royale format, which is built on a free-to-play model. To date, the game has a total player base of 200 million.
However, Fortnite is losing its luster against Apex Legends. Per reports from SuperData, Fortnite’s revenues fell 48% month over month in January, post the release of EA’s game.
Apex Legends's user base already equals 25% of Fortnite’s total user base, which depicts the growing traction of the game. Moreover, the game has witnessed a wide audience even before the introduction of the first battle pass and new heroes, which is a positive.
The game also boasts certain unique features, which differentiate it from Fortnite. These features aid the company in expanding its user base and counter competition.
Electronic Arts Inc. Price and Consensus
Electronic Arts Inc. Price and Consensus | Electronic Arts Inc. Quote
EA’s Top Line to be Propelled by Apex Legends
Free-to-play Apex Legends is expected to turn EA’s fortune around in the near term. The company is monetizing the game by selling outfits and other upgrades. Notably, its shares have gained10% since the game’s release on Feb 4.
Per reports, the company is also in talks with Tencent (OTC:TCEHY) to take the game to China. Notably, EA lacks significant presence in China apart from FIFA and a few mobile games. Thus, Apex Legends will boost EA’s footprint in China’s PC-gaming market.
Moreover, the game can add to EA’s ongoing shift from physical to digital versions of video games. Compared with the physical platform, digital games are more profitable due to minimum packaging cost.
Notably, EA’s digital revenues (70.4% of revenues) increased 16.4% to $908 million in the last reported third-quarter fiscal 2019.
Apex Legends terrific performance make up for the sluggish performance of the company’s recent release Anthem (NYSE:ANTM) and give the company a competitive edge over the likes of Activision (NASDAQ:ATVI) and Take Two Interactive (NASDAQ:TTWO) .
EA currently holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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