Electronic Arts report marks the next data point in slowing videogame sector
Sundry Photography/iStock Editorial via Getty Images

Electronic Arts (NASDAQ:EA) reports its fiscal fourth-quarter earnings after the closing bell Tuesday - and with big-publishing rival Activision Blizzard already in the books last month (but heading toward an acquisition by Microsoft), EA will mark an important new indicator of videogaming health in an industry where consumer spending has been sliding.
Industrywide sales in March underperformed their prior-year total for the fifth straight month, with consumers shifting more spending toward more live experiences, and the gaming industry still struggling to get hardware moved to consumers.
Analysts are actually expecting EA to post double-digit growth on top and bottom lines (EPS up 16% to $1.43, bookings up 19% to $1.77 billion) before a multi-quarter slowdown in bookings kicks in.
The company also is looking for some heavy growth in mobile, though rising expenses may put some pressure on margins.
And, now and for a while, investors will be watching EA's results (as well as those of Take-Two Interactive Software next week) for any indications of where rising industry consolidation might affect the company. Not only is Activision Blizzard on a path to become part of Microsoft, but Ubisoft has recently been the subject of heated M&A talk.
Observers will also look for any details on the Star Wars videogame work that EA announced in January - three new games, including a first-person shooter that will likely look different from the Star Wars: Battlefront series.
EA and Take-Two recently won some praise from Bernstein, saying the companies were the "adults in the game room" that have learned from mistakes to build mature business that also feature growth.