According to one BMO Capital Markets analyst, EA investors overreacted to the Star Wars Battlefront 2 loot box controversy last year. Gerrick Johnson has written that stocks should outperform in 2018 despite the outrage.
"Consumer pushback to EA's Star Wars in-game monetization strategy has undermined some investor confidence and has driven the stock lower." said analyst Gerrick Johnson. "After further consideration, we believe the reaction may have been overdone, providing a buying opportunity for what is, otherwise, a solid long-term history."
Johnson further opined, "While the cancellation of micro-transactions in Star Wars makes for an intriguing headline, the impact sounds much larger than it really is. Over the longer term, EA is experiencing a tailwind that is benefitting the entire video game software industry: the transition of physical software sales to digital downloads, which offer higher margins and the opportunity for incremental add-on sales and multi-player online services."
You can read the full report over at CNBC.
The War Within Hotfixes - 25 March
The War Within Hotfixes - March 25
