In the month of August, Electronic Arts Inc. (NASDAQ:$EA)  delivered its all-time high, soaring 52% year-to-date. With its shares up sixfold since 2014, and a new revenue growth strategy on the horizon, how much fuel does Electronic Arts have left to sustain its momentum?

During EA’s fiscal 1Q18 earnings call, CEO Andrew Wilson indicated the three priorities for the company to drive long-term revenue growth. These are: core technology base, development of new gaming titles, and expansion of model lineup to increase user engagement.

Wilson stated: “Our industry-leading Frostbite engine is now powering development of a dozen new titles across our portfolio. It is continually engineered alongside our world-class technology platform for games and services, enabling our creative teams to leverage sophisticated data and insights to conceptualize and build the most incredible new experiences for our players.”

Indeed, EA is highly optimistic about the potential of its core digital platform technology to increase player interaction and enhance player experience.

Further, EA plans to increase its research and development expense from $294 million in fiscal 1Q17 to $325 million in fiscal 1Q19. The company hopes to perfect the streaming experience.

On the other hand, investors might heed caution on EA’s drastic premium for its stock that heavily depends on consistent production. While the overall video game industry is growing at a slow pace, EA’s net income has remained stagnant within the $900 million to $1.2 billion per year range for the past four years. Further, on a top-line basis, EA’s revenue has only grown at a compounded 3% rate over the past 10 years.

So a sensible option would be to sit back, relax, and purchase EA stock at a significantly lower price in coming quarters, after a game or two flops.

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