Electronic Arts Inc. (NASDAQ: EA) secures key intellectual property with the aim of establishing itself as the dominant force in mobile and console games. On Tuesday, the company announced an agreement with Universal to develop a video game series based on “Minions” characters from the movies Despicable Me and Despicable Me 2.
This isn’t the only content acquisition Electronic Arts Inc. (NASDAQ: EA) has made in recent times. It is clear that the company pushes for aggressive growth through channels in which it has been successful in the past. Its ability to leverage strong intellectual property and transform it into stable, repeatable cash flow has made Electronic Arts what it is today, and the process is clearly not yet complete.
Electronic Arts seizes licenses
Separated from Despicable Me license, Electronic Arts Inc. (NASDAQ: EA) acquired the rights to Star wars in 2013 for ten years. This transaction will yield its first dividends in 2015 with the launch of Star wars Battle front. VScoming on the back of a huge new Star wars launch, the game is likely to be a smash hit, and there are plenty of other games to follow in the years to come.
The company’s traditional licenses for printing money, Fifa and Madden remain with the company for the time being. Electronic Arts Inc. (NASDAQ: EA) holds the licensing rights to FIFA until 2022. The company will keep Madden as a franchise for a few more years, according to an EA announcement in 2014.
Licensing experts distinguish Electronic Arts
While companies like Glu Mobile can get a great license from time to time like Kim Kardashian, Electronic Arts has been doing it for years. The company’s ability to get hold of great licenses at competitive prices has set it apart from the industry for some time, and it will continue to do so in the years to come.
Simpson is exhausted is the game that really sets Electronic Arts Inc. (NASDAQ: EA) apart from
On mobile, license issue
Electronic Arts Inc. (NASDAQ: EA) has the talent to make great games, but so do all of the other big studios. On mobile, the real problem is the inability to sustain hits for very long and the inconsistency in achieving hit status. Electronic Arts solves both of these problems.
Take the Minions acquisition as an example. The company will be able to release several games in different genres, taking advantage of each with the anchor that are instantly recognizable characters. Whatever game shows the momentum, the marketing is pushed and the company’s revenue is secured through in-app purchases.
Electronic Arts has been using this model effectively for a few years, and it has worked. The company’s shares have more than doubled in the past twelve months of trading. With that kind of momentum behind it, there’s plenty of room for the business to fail, but with those licenses under its belt and a consistent, proven strategy behind it, the business is the best bet for success in the business. today’s video game industry.