Now that more outdoor entertainment options are becoming more available, competition is rising in the video gaming industry to maintain their user base. Prominent video game developers Electronic Arts (EA) and Take-Two Interactive (NASDAQ:TTWO) are well-positioned to capitalize on the industry tailwinds. But which of these stocks is a better buy now?. Electronic Arts Inc . (NASDAQ:EA) and Take-Two Interactive Software, Inc. (TTWO) are two established players in the video gaming industry. EA develops, publishes, and distributes branded interactive entertainment software across various genres for video game consoles, PCs, handheld game players, and cellular handsets worldwide. It also provides online game-related services. TTWO develops, publishes, and distributes interactive entertainment software games and consoles worldwide. It provides its products through physical retail, digital download, online platforms, and cloud streaming services.
Though limited outdoor entertainment options have led to the video game industry witnessing an expanding user base and generating significant returns last year, increasing vaccination rates and decreasing COVID-19 cases are paving the way for outdoor entertainment options to people. To maintain or grow this user base, companies in this space are developing new versions of their most popular games with better graphics, low latency, and quality. The global gaming market is expected to grow at a 13.2% CAGR to reach $545.98 billion by 2028. So, both EA and TTWO should benefit.
While TTWO lost 10% over the past six months, EA has lost 5%. Which of these stocks is a better pick now? Let’s find out.