Electronic Arts (ERTS), the maker of the Madden Football series, Tiger Woods PGA, and NBA Live for lack of a better phrase is a slam dunk.
In a bad economy, people cocoon themselves. They stay home. They watch TV. They rent movies. And, they play video games. Electronic Arts (ERTS) is the king of video game makers. Yes we have a variety of platforms to choose from, Playstation (NYSE:SNE), XBOX 360 (NASDAQ:MSFT), the Wii, and of course PC and MAC(NASDAQ:AAPL). Guess what ? Electronic Arts makes games for all of them.
EA has a built an annuity with its sports franchise games. Every year they release an update, with new features and most importantly updated rosters. People who play sports games HAVE to buy the update. Its no fun playing a basketball game when the most current player to choose from is Magic Johnson.
The next big catalyst for game makers will be the mobile sector. Mobile gaming will be huge. People want to play while waiting at the doctors office, at the airport, in line at unemployment. The iphone (AAPL) too will become a huge mobile gaming platform.
Get in the game and buy shares of this industry gorilla. It will be back to its 52 weeks highs. Now excuse me while I get back to scoring a touchdown against that 12 year old in Omaha over XBOX LIVE :)
Disclosure: I do own most of the stocks mentioned above. I do trade them from time to time for myself and clients. And I am addicted to XBOX live. I will beat that 12 year old yet.