EA Sports drives US video game market growth, analysts predict slight upside for Electronic Arts stock

EA Sports drives US video game market growth in July, with a 5% revenue jump to $5.05 billion. Analysts predict a slight upside for Electronic Arts stock, with a forecasted price of $172.56. However, GuruFocus forecasts a potential 9.11% downside based on GF Value. EA Sports played a key role in driving new releases and Nintendo's Switch 2 performance.

The U.S. video game market experienced a robust growth in July, with total revenue exceeding $5.05 billion, a 5% increase compared to the same period last year [1]. This surge was primarily driven by the strong performance of EA Sports and the Nintendo Switch 2.

The best-selling paid game in July was EA Sports College Football 26, which also secured the third spot in the year-to-date sales ranking [1]. EA Sports played a pivotal role in driving new releases, with the EA Sports MVP Bundle, which includes College Football 26 and Madden 26, also making the top 20 best-selling paid games list [1].

Nintendo's Switch 2 continued its impressive momentum, with hardware sales jumping 21% to $384 million, making it the best-selling console in both unit and dollar terms [1]. The new console's success can be attributed to its hot release in June and the strong demand for gaming accessories, with the Switch 2 Pro Controller becoming the year's best-seller in both unit and dollar terms [1].

Analysts predict a slight upside for Electronic Arts stock, with a forecasted price of $172.56, although GuruFocus forecasts a potential 9.11% downside based on GF Value [2]. Electronic Arts' strong beta performance for Battlefield 6, with an estimated 18.7 million players during the open beta, has contributed to this optimism [2].

Despite the challenges posed by Call of Duty: Black Ops 7's negative reception, Electronic Arts' strategic moves, such as the partnership with the National Hockey League for NHL 26 and the amendment to its Change in Control Severance Plan, highlight the company's potential for growth in the gaming industry [2].

In summary, EA Sports and Nintendo's Switch 2 have significantly contributed to the U.S. video game market's growth in July, with analysts forecasting a positive outlook for Electronic Arts stock.

References:
[1] https://gameworldobserver.com/2025/08/27/in-july-the-revenue-of-the-us-gaming-market-exceeded-5-billion-with-the-main-hit-of-the-month-being-ea-sports-college-football-26
[2] https://www.investing.com/news/analyst-ratings/oppenheimer-maintains-outperform-rating-on-electronic-arts-stock-amid-strong-battlefield-6-beta-93CH-4206567