EA Removes Microtransactions From 'Star Wars Battlefront II' Following User Backlash

Electronic Arts Inc. EA's launch of its "Star Wars Battlefront II" is off to a rocky start.

As part of the game, users could spend real money to buy items that are needed to improve their character or spend dozens of hours to unlock the features for free. This is causing many users to complain EA's game play is "dangerously close to pay-to-win waters," according to Kotaku, a popular video gaming website.

The Analyst

Buckingham Research Group's Scott Krasik maintains a Buy rating on EA's stock with an unchanged $143 price target.

The Thesis

The "internet outcry" surrounding EA's microtransaction feature will likely end up being "noise" as the company has proven itself to be very responsive to game criticisms, Krasik said in a note. The company will continue listening to its user base since the "Star Wars" franchise is "too important" to mess up.

As such, the prior bullish thesis which calls for a multi-year cycle of sales and EPS revisions over the next years are unchanged by the news around the monetization controversy, the analyst said. Investors could reasonably expect multiple expansion moving forward, especially given the popularity of video game stocks as an alternative investment from traditional retail.

Price Action

Shares of EA were trading lower by 3 percent at $108.34 Friday morning.

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