(Reuters) – Shares of Electronic Arts Inc. jumped 8.5 percent on Tuesday after the game maker said it signed a 25 million players for its new battle royale game “Apex Legends” in a week, setting it up for a confrontation with the Epic Games’ wildly popular “Fortnite”.
EA hopes to reproduce the success of “Fortnite”, which combines the “The Hunger Games” film trilogy and “Minecraft” video game and has a huge following with teenagers and older gamers.
EA owns iconic games such as “FIFA”, “Need for Speed” and “Battlefield” launched “Lightning Legends” last week in efforts to attract new audiences and take advantage of the popularity of the battle royale format, where dozens of online players battle each other to the death.
“Apex Legends” signed to 10 million players within three days after the launch of EA said last week, a milestone that Fortnite took two weeks to reach. EA announced the new number on Monday on Twitter.
During the first songs mark a victory for EA, the company still has a long way to go in the game Fortnite is more than 200 million subscribers.
Friday, “Apex Legends” was the most viewed on gaming live-streaming network twitch.
“(Electronic Arts) topsy-turvy CY19 took a decidedly positive turn last Friday, when they announced ‘Top Legends’,” Bernstein analysts said, raising their price target on the stock by $29 to $120 – well above the median of the Wall Street target of $95.
“Apex Legends’ is a stunning success should also greatly reduce the frustration with the management, sometimes expressed by investors,” the analysts said, adding that “Fortnite” it took three months to 30 million users.
Analysts at Baird said that the update should offer investors a better visibility, which “Apex Legends” would be a “significant hit” for EA in the coming year.
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The news comes almost a week after the company lowered its annual revenue forecasts following weak sales of the “Battlefield” V ” title, that had sent its shares plunging 18 percent.
After a 9.6 percent increase in intraday on Monday, the stock closed slightly lower at $97.24.
Activision Blizzard was marginally ahead of its quarterly results, due after the bell.
Reporting by Akanksha Rana in Bengaluru; Editing by Saumyadeb Chakrabarty