I'm looking for info on any new up-and-coming video game companies. I want to get in the space but I want the risk/reward profile of an emerging company. Although I think EA and some of the other big ones are great, they just don't have the upside.
There aren't any. The smaller players are more likely to go bankrupt than to become major players. You could maybe get a double out of a couple of the biggest names in the sector over the next few years, but if you're looking for a ten-bagger you won't find it here.
I just saw a price target on ERTS of 75 dollars. How can you say it has no upside? I guess you're looking for a cheap video game stock in price terms. If that is the case then look at companies like COOL and SSTI. They are cheap in terms of price but they are priced that way for a reason.
Do yourself a favor, open up your wallet and buy shares in either ERTS and/or ATVI. Their pretty much a sure thing.
Other than Take Two, there really aren't any small public companies in the space. (If you can call them small!) The field has huge barriers to entry, as publishers have to split revenues with game platform manufacturers. Not just anyone can produce a game unless they partner up with the big boys who demand big money! It is much like the entertainment studios in this way. The notion of independent, scrappy publishers, at least for Playstation, X-box and Wii games is non-existent.
This is another reason EA has a huge competitive advantage. There are huge barriers to entry protecting their business from competition.