Whether you call it “soccer” or “football,” video game maker Electronic Arts (NASDAQ:EA) calls it a money-maker. And the new launch of “EA Sports FC 24,” a departure from its earlier annual releases of games around the FIFA logo, has been met with astounding success. As a result, EA is up modestly at the time of writing.
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This is the first time that EA has released a soccer title since its branding deal with FIFA fell through, a tradition that was solid for the last 30 years. But when FIFA demanded $150 million for licensing fees—double what they were previously—EA pulled the plug and launched EA Sports FC instead. So far, the new branding doesn’t seem to be hurting EA’s progress at all. In fact, some new records have even been set with FC’s launch.
Furthermore, early players have discovered that there’s virtually no difference between EA’s FIFA and EA Sports FC. As Keith Stuart, a reviewer with The Guardian, noted, “When you start playing, all your suspicions are confirmed: this is FIFA 24, minus one teeny-weeny multimillion dollar license.” Reports note that pre-release signups for EA Sports FC were 25% higher than for FIFA 23, but that might have been due to EA’s decision to keep the early access window open for seven days instead of the three that FIFA 23 got.
What is the Forecast for EA Stock?
Analysts are fairly happy about EA’s overall potential in the field. In fact, EA stock is currently rated a Moderate Buy by analysts, supported by eight Buy ratings and six Holds. Further, EA stock offers investors 21.06% upside potential thanks to its average price target of $145.71.
