Thanks to Pokémon Go, virtual and augmented reality is all the rage, but Electronic Art’s (EA) Chief Executive Andrew Wilson says it won’t be adopted by the masses right away.

Speaking on CNBC’s “Squawk Alley” Thursday, EA's CEO said huge adoption is a couple of years in the making with the onus falling on the industry to make a "profound user proposition" for virtual-reality gaming in order for it to enjoy massive adoption say like the rate of mobile phone usage.

Fastest Growth: Mobile Games

"We've got some work to do, both at a technology level and a software level, to make sure that these experiences truly are better than anything you can get today," Wilson said on CNBC. One obstacle to mass adoption: the virtual reality headsets that are typically required. Wilson argues most people don’t want to carry extra things around. While virtual reality is in the future, Wilson said augmented-reality games that can be played on mobile devices are a big and growing opportunity. In fact, Wilson said mobile games are the fastest growing part of EA’s business. "The mobile device is the biggest gaming platform on the planet," he said.

Deloitte Global, the industry research and consulting firm, predicts that in 2016 mobile will become the leading games platform by software revenue generating $35 billion in revenue and marking a 20% increase from the year earlier. PC games are forecast to account for $32 billion in revenue while console games will see revenue of $28 billion. That’s only a 5% and 6% increase, respectively, from a year-ago.

Surprising Results

For its fiscal first quarter, which EA reported in early August, the company surprised Wall Street by reporting EPS of $1.40 a share, higher than the $1.31 analysts were looking for. Throughout 2016, EA said its Battlefield franchise continued to grow, reaching more than 11 million unique players. It also said it’s EA Access, its subscription service,saw its subscriber base double compared to a year ago.


“Our digital business drove this quarter, particularly outperformance from FIFA Ultimate Team on console and Star Wars: Galaxy of Heroes on mobile," said CFO Blake Jorgensen when announcing fiscal first-quarter results. "This success along with the launch of NBA LIVE Mobile gives us great confidence in our ability to operate and add new live services through the year." (See also:  EA: How Electronic Arts' Stock Price Rose 10% in 6 Months.)

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