Apex Legends Popularity Decline is Hurting EA Stock

Apex Legends’ constant decline in popularity is hurting EA since the battle royale game makes up a worthy portion of EA’s stock valuation. This was revealed in a recent report by a financial site SeekingAlpha. The site believes that Apex Legends is worth around $1.8 to $2.4 billion. It’s less than the previous estimates because Apex Legends is now losing players.

It’s true that Respawn’s Apex has been losing followers lately on Twitch despite the 40 million hours watch time reported back in February. Since then, the game’s viewership has dropped by million per week which is disappointing for the publisher and developer both.

As a result, analysts are advising investors to not buy EA stock because Apex will continue to face competition from Epic Games’ Fortnite. SeekingAlpha reports that Apex Legends’ searches on Google have also decreased.

The Battle Royale game from Respawn Entertainment had a great launch but according to the report, the early traffic was not organic. That’s because Electronic Arts paid millions to popular streamers to play the game live on launch day which didn’t last for long.

A few days later, streamers like Dr. Disrespect and Ninja stopped playing the game and returned to Fortnite, resulting in less interest towards the game. The famous Youtuber Shroud has also told the fans that he’s tired of Apex Legends and might stop playing the game due to persistent issues.

Honestly, we believe the criticisms of these influencers should be taken very seriously. They not only have the power to generate interest and maintain interest for a game, but they also are veteran gamers, and have seen many games both live and die. They know the market far, far better than most investors, Seeking Alpha said.

Fortnite, on the other hand, is back on top with 20 million hours watched. Epic’s battle royale game has proved that it’s the most stable game when it comes to success and player interest. However, it’s worth noticing that this massive interest is the result of never ending content updates and quick fixes, which come at a cost. That’s why, the developers have been reported to be working over 50, 70, or even 100 hours a week.

Apex Legends is a great game but it’s clear that it will never overcome a juggernaut like Fortnite anytime soon. Despite that, Respawn can save Apex Legends from dying by offering better Battle Pass items to the players, reduce server lag complaints and prevent bugs from appearing in the game.

Apex Legends is now available to play on Microsoft’s Xbox One, PC and Sony’s PlayStation 4.

Source:SeekingAplha