Video Game Stock Round-Up ??? Sony (SNE) Leads at E3
This year’s annual video-game extravaganza Electronic Entertainment Expo (E3) mesmerized avid gamers with a robust pipeline of games. Held at Los Angeles from Jun 10 to Jun 12, the world’s biggest video game show witnessed a plethora of new titles from all major game publishers.
Last year, at E3, Sony Corp (SNE) impressed gamers by showcasing PlayStation 4 (PS4). This year, it demoed Project Morpheus, their new virtual reality headset. Post Facebook’s (FB) acquisition of Oculus VR, application of virtual reality in gaming, which received significant attention.
Sony’s successful demo of the headgear will leverage its position in the video-gaming market. Although product development for consumer usage is expected to take significant time, Project Morpheus is projected to be a key long-term growth catalyst for Sony.
Apart from revealing a robust game pipeline, the company announced new console features like the PlayStation Now and PlayStation TV. PlayStation Now offers video game streaming service on PS3 and PS4. PlayStation TV is a device (selling price $99.0 in the U.S.) that allows gamers to play PS4 games on a remote television.
PS4 continues to be the leading console in terms of sales, although Microsoft’s (MSFT) decision to lower Xbox One price is expected to benefit the Windows maker. Compared to last year, Microsoft had a much better E3 in 2014, with games becoming its primary focus. However, missing Halo 5: Guardians will negatively impact sales in 2014.
Nintendo also impressed at the E3 with a game line-up of Super Smash Bros and Zelda. Ubisoft’s plan to launch popular Watch Dogs on Wii U in fall this year will boost Nintendo’s sales. The company launched Amiibos figurines at E3, which are much similar to Activision Blizzard’s (ATVI) Skylanders.
As anticipated, Electronic Arts (EA) announced the next installment of the Battlefield franchise, Battlefield Hardline, and launched the online beta at E3. Activision revealed Call of Duty: Advanced Warfare, Destiny and Skylanders Trap Team.
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Glu Mobile recently announced a partnership with Skydance productions that will allow it to develop a free-to-play Terminator mobile game. The game is set to release in summer 2015 simultaneously with Terminator reboot movie.
Bally Technologies (BYI) recently acquired Israel-based online social casino game developer Dragonplay for approximately $51.0 million in cash. The acquisition is expected to close in July this year.
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Activision Blizzard Chief Executive Officer (CEO) Robert Kotick must face a lawsuit filed by investors related to share buyout from Vivendi SA, ruled Delaware Chancery court. CEO Kotick along with partners bought 25.0% of Vivendi’s Activision stake at the same discounted price ($2.34 billion) that Activision paid for another block of shares. Investors alleged that the board of directors improperly allowed them to buy the stake.
Seattle Seahawks’ defensive back, Richard Sherman, will be featured in EA’s upcoming Madden NFL 15 cover, after he got the maximum votes and beat Carolina Panthers’ quarterback, Cam Newton, in the finals.
Game News
Activision will launch Destiny on Sep 9, Skylanders Trap Team on Oct 5 and Call of Duty: Advanced Warfare on Nov 9.
EA SPORTS PGA Tour will release in spring 2015.
EA will launch The Sims 4 on Sep 2, NHL 15 on Sep 9 and Battlefield Hardline on Oct 21.
Take-Two Interactive will launch Borderlands: The Pre-Sequel on Oct 14.
Take-Two’s GTA V will launch on PS4, Xbox One and personal computers in fall 2014.
EA launched free-to-play PGA TOUR King of the Course for mobile devices.
IGT’s DoubleDown Casino launched soccer-themed mobile-exclusive slot game Final Goal.
Performance
Over the last 5 days, Activision was the leading stock as it added about 3.44%. The biggest loser was Sony, which lost over 1.60%. EA has been the biggest gainer in the last 6 months, with Activision a distant second.
EA’s strong game portfolio for next-generation consoles has been the primary growth factor for the stock. However, Zynga continued to lose during the period, primarily on intensifying competition from the likes of King Digital and less-than-impressive product pipeline.
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