Jan. 17, 2014, 9:31 AM
- Electronic Arts' (EA +11%) Battlefield 4, Madden NFL 25, and FIFA 14 respectively claimed spots #2, #4, and #9 on NPD's December bestseller list for U.S. physical retail game sales. Those rankings are hardly changed from November (#2, #4, and #10). Moreover, EA's total sales through the physical retail channel rose an estimated 47% Y/Y.
- "EA Scores December Hat Trick," reads the title of a bullish Cowen report. The firm thinks NPD's numbers suggest EA has a shot at beating consensus estimates and guidance forecasts when it reports on Jan. 28. Longbow, which had been prepared to cut its EA estimates in response to NPD's numbers, is hiking them instead.
- On the other hand, NPD thinks Activision's (ATVI -0.1%) U.S. physical retail sales fell 40% Y/Y in December, thanks in part to tough Call of Duty comps. Call of Duty: Ghosts was the bestselling title for the second straight month, but Skylanders: Swap Force fell to #10 from #7. Shares +0.9%.
- Take-Two's (TTWO +2%) Grand Theft Auto V, which debuted in September to record sales, fell to #7 from #5. NBA 2K14 rose a spot to #5.
- Altogether, NPD thinks U.S. physical retail game sales, still pressured by a shift to digital channels and mobile gaming, fell 17% Y/Y. That's a little better than November's 24% drop.
- Previous: EA, Activision, Take-Two underperform after GameStop warns
Jan. 17, 2014, 9:13 AM
Jan. 14, 2014, 2:27 PM
- Activision (ATVI -1.7%), Electronic Arts (EA +0.3%), and Take-Two (TTWO -1.2%) are underperforming on a strong day for tech stocks after GameStop (GME -19.4%) reported disappointing holiday game sales and issued a Q4 EPS warning.
- Though GameStop saw its new hardware sales (a low-margin business) double Y/Y thanks to the PS4/Xbox One launches, a bigger-than-expected decline in PS3/Xbox 360 game sales led new software sales (high-margin) to drop 22.5% Y/Y. Pre-owned sales rose 7%, and digital sales 15%.
- Compared with peers, Electronic Arts is holding up relatively well thanks to a Credit Suisse upgrade to Outperform. EA reports on Jan. 28, and Take-Two on Feb. 3. If history is any guide, Activision should report in early February.
Jan. 7, 2014, 1:30 PM
- Sony (SNE +0.1%) announces at CES PlayStation 4 end-user sales (i.e. sell-through) reached 4.2M as of Dec. 28. That figure suggests the PS4 soundly outsold the Xbox One (MSFT - 3M+ sales in 2013) last year, and has a good chance of surpassing Sony's target of 5M FY14 (ends March '14) sales.
- Wider distribution - the PS4 is on sale in 53 countries, the One is only available in 13 - has helped Sony's next-gen console outsell Microsoft's. But so has a lower price tag ($399 vs. $499) and the backlash to the used game restriction and Internet access requirements initially planned for the One (before Microsoft backtracked).
- Sony has also announced the launch of PlayStation Now, its anticipated cloud gaming service. The service, which leverages Gaikai's cloud gaming platform, will provide access to PS2/PS3 titles, and (since it's cloud-based) run on everything from home consoles to TV sets to handheld/mobile devices.
- Also announced: a Web-based TV service that will include VOD content and a cloud-based DVR. However, Sony is short on details for now. Intel and others have taken stab at offering such a service, only to be thwarted by content owners and incumbent pay-TV providers.
- PS4 and Xbox One CPU/GPU supplier AMD (AMD +1.6%) is rallying for the second straight day. Game developers are also higher: EA +3.2%. TTWO +3.2%. ATVI +1.6%.
Jan. 2, 2014, 5:49 PM
- VentureBeat reports Dave Roberts, the CEO of Electronic Arts' (EA) PopCap mobile games unit, is leaving the company, and will be replaced by co-founder John Vechey. Another co-founder, Jason Kapkala is also reportedly resigning, but will remain a "creative consultant."
- EA acquired PopCap, creator of the popular Plants vs. Zombies and Bejeweled franchises, for $750M + $550M in performance incentives in 2011. But the unit has had trouble monetizing new titles amid an industry shift towards free-to-play mobile games, and has seen multiple layoffs.
- The Simpsons: Tapped Out and Real Racing 3, arguably EA's two biggest recent mobile successes, came from other company divisions.
Dec. 13, 2013, 11:08 AM
- NPD estimates U.S. physical retail video game sales fell 24% Y/Y in November, after having risen 12% in October and (thanks to the Grand Theft Auto V launch) 52% in September. The fact many gamers directed their discretionary income towards buying next-gen consoles may have played a role here.
- Electronic Arts (EA +7.2%) investors appear pleased Battlefield 4 came in at #2 on NPD's bestseller list, in spite of the well-publicized bugs and gameplay issues EA is scrambling to address. In addition, Madden NFL 25 is ranked #4 after falling out of the top-10 in October, and FIFA 14 is at #10.
- Activision's (ATVI +0.1%) Call of Duty: Ghosts topped the bestseller list, and Skylanders: Swap Force is ranked #7. Take-Two (TTWO +2%) investors appear content with the fact GTA V came in at #5 after easily topping NPD's list for two months; Take-Two's NBA 2K14 is ranked #6, up one spot from October.
- NPD also states the PS4 outsold the Xbox One in November both in terms of hardware and game sales. But that might simply be the result of an earlier launch (Nov. 15 vs. Nov. 22). Sony claimed 2.1M+ PS4 sales as of Dec. 3, and Microsoft claimed 2M+ Xbox One sales as of Dec. 11.
Dec. 6, 2013, 11:01 AM
- Electronic Arts (EA +4.6%) has recouped the lion's share of the losses it saw yesterday in response to news its DICE unit is halting work on future projects to fix Battlefield 4. The efforts of several analysts to defend the gaming giant are likely helping out.
- While admitting Battlefield 4's game engine needs to be fixed, Piper's Michael Olson deems it unlikely EA's efforts have pulled in teams working other projects, and believes Battlefield 5 will ship in FY15 (ends March '15). Moreover, though he's only assuming 10M Battlefield 5 shipments for FY15 (compared with 13M Battlefield 4 shipments for FY14), Olson thinks EA can deliver more than $4.3B in FY15 revenue (consensus is at $4.23B).
- Pac Crest's Evan Wilson is more cautious. He argues Battlefield 4's disappointing initial sales, lukewarm reviews, and bugs have "lessened the value of the Battlefield franchise and the probability that it can indeed knock Call of Duty (ATVI +1.9%) off its perch." He also thinks they put into question "EA’s decision to standardize on the Frostbite [game] engine."
- Also: EA has launched iOS/Android games for its popular Heroes of Dragon Age strategy combat franchise. Like other EA mobile titles, the games are free to download, and monetized via in-app purchases.
Dec. 5, 2013, 11:44 AM
- With complaints about bugs and connectivity issues piling up for Electronics Arts' (EA -7.3%) recently-launched Battlefield 4, EA's DICE unit (responsible for developing the game) is halting the release of additional Battlefield 4 expansion packs, and is also stopping work on all "future projects," until the game's issues are sorted out.
- EA investors aren't responding well to the news. Without healthy sales of Battlefield 4 and its $50 premium service, EA could struggle to hit its Dec. quarter forecasts. Moreover, DICE's project halts could delay the release of two anticipated titles: Star Wars: Battlefront (due in 2015) and Mirror's Edge 2 (due in 2015/2016).
- Activision (ATVI -2%), whose mainstay Call of Duty franchise is the top rival to EA's Battlefield franchise, is also selling off.
Dec. 4, 2013, 9:42 AM| Dec. 4, 2013, 9:42 AM | Comment!
Nov. 15, 2013, 2:20 PM
- After rising 52% Y/Y in September on the back of huge sales for Take-Two's (TTWO -0.2%) Grand Theft Auto V, NPD estimates U.S. physical retail video game sales only rose 12% Y/Y in October ahead of this month's PlayStation 4 (launching today) and Xbox One (launching on Nov. 22) debuts. GTA V was once more the bestselling title.
- GameStop (GME -2.2%) is selling off on the wake of NPD's numbers, and so is Electronic Arts (EA -5.7%). Investors in the latter might not be pleased Madden NFL 25 (#2 in September and #1 in August) and FIFA 14 (#5 in September) fell out of the NPD's list of the ten top-selling games. EA's Battlefield 4, which launched near the end of the month to muted reviews, came in at #4.
- Take-Two's NBA 2K14 (#3 in September) and WWE 2K14 respectively came in at #7 and #10.
- Activision's (ATVI - unchanged) Skylanders: Swap Force was #8 on the list. Diablo III, which was #4 in September, dropped out of the top-10.
- Hardware sales fell 8% ahead of the PS4/Xbox One launches, and only totaled $171.7M. Accessories sales rose 1%.
Oct. 30, 2013, 9:48 AM
- Electronic Arts (EA +11%) has been upgraded to Strong Buy from Hold by Needham after beating FQ2 estimates and issuing solid FY14 guidance.
- LSI (LSI +3.1%) has been upgraded to Overweight by Morgan Stanley a week after posting mixed Q3 results.
- Nanometrics (NANO +17.8%) has been upgraded to Outperform by Pac Crest in the wake of its Q3 beat.
- InvenSense (INVN -16.1%) has been cut to Neutral by Roth after issuing below-consensus FQ3 guidance to go with an FQ2 beat.
- Cyan (CYNI -26.3%) has been cut to Hold by Jefferies after issuing weak Q4/2014 guidance to go with a Q3 beat.
- Digital Realty (DLR -13.1%) has been cut to Market Perform by Raymond James after posting mixed Q3 results and issuing soft Q4/2014 FFO guidance. Off in sympathy: EQIX -1.1%. DFT -2.7%.
Oct. 30, 2013, 9:13 AM
Oct. 29, 2013, 4:23 PM
- YELP expects Q4 revenue of $66M-$72M, above a $64.8M consensus. Shares -1.5% AH. (Q3 results, PR)
- Take-Two (TTWO) expects FQ3 revenue of $650M-$700M and EPS of $1.20-$1.35, largely above a consensus of $640.9M and $1.22. FY14 (ends March '14) guidance is for revenue of $2.2B-$2.3B and EPS of $3.50-$3.75, above a consensus of $2.03B and $2.80. Shares are halted. (FQ2 results, PR)
- Electronic Arts (EA) expects FQ3 revenue of $1.65B and EPS of $1.22, below a consensus of $1.75B and $1.32. However, FY14 (ends March '14) guidance is stronger: revenue of $4B and EPS of $1.25 vs. a consensus of $4.02B and $1.22. Shares +2% AH. (FQ2 results, PR).
- Flextronics (FLEX) expects FQ3 revenue of $6.5B-$6.9B and EPS fo $0.21-$0.25 vs. a consensus of $6.79B and $0.25. Shares -1.6% AH. (FQ2 results, PR)
Oct. 29, 2013, 4:06 PM
Oct. 29, 2013, 1:04 PM
- Battlefield 4 launched today in the U.S., ahead of Electronic Arts' (EA -2.7%) afternoon FQ2 report. Reviews for the first-person shooter have been respectable, but not quite glowing.
- EGM (8.5/10) calls Battlefield 4's multiplayer mode "a force to be reckoned with" capable of producing "dozens of memorable, thrilling experiences the likes of which just aren’t possible in any other shooter." But it also claims the game's hyped single-player mode (includes work from film/TV actors) "misses its narrative ambitions by a mile."
- IGN (8.0/10): "The current-gen version of Battlefield 4 isn't the ideal way to play, but it isn't damaged or deficient despite its limitations. It accomplishes less than you'll see on other platforms, but it's still a great multiplayer shooter."
- EA is counting on both sales of Battlefield 4 itself, and subscriptions to its $50 premium service, to bolster holiday season results. EA closed its June quarter with 4M+ subs for its Battlefield 3 Premium service.
- Separately, EA has ended its 15-year relationship with Tiger Woods. That means Tiger Woods PGA Tour 14 (launched in March) will be the last EA golf title to feature Woods' name. NPD estimates the Tiger Woods PGA Tour franchise has produced $771M in game sales over its lifetime.
Oct. 29, 2013, 12:10 AM
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