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gaucho420
47 Comments
The Future of Gaming: Why EA and Take Two Have It Wrong
In addition, San Andreas is now available for download via Xbox Live. Good games always sell...ask Nintendo about its back catalogue of games. Super Mario Bros. still sells...and they're many SMB type catologue games that always will sell.
While I understand the bloggers point, I would say the blogger doesn't understand "CORE" gaming. Yes, this segment of the gaming world is probably stagnant to slow growing, it is still the highest money maker per title. I love gaming, including social gaming...but my money mostly goes towards the traditional games, whether on the 360 or the Wii.
I have a Wii and 360...and I've looked a super casual net gaming and quite frankly it holds no appeal to me what-so-ever. However, I can recognize it will hold some appeal to others who would never play GTAIV. But I would argue I spend much more than those people would, even if they outnumber me 100-1...over a year, I'll outspend them.
I cannot imagine ever being sastisfied simply playing a free game on the net...that's for the non hard core crowd, which is fine and perhaps can be profitable down the road, but that doesn't take away from traditional game makers profitability. They are two separate pies...a hard core gamer used to Xbox Live, the Wii or PS3 isn't suddenly going to dumb down his entertainment choices due to a new group rediscovering simple gaming and lets not forget gaming was already larger than movies before the Wii and mass gaming...so again, two different pies.
IE- the core crowd which is large and quite ample with their money is not going to suddenly give up Madden or GTA. At the same time, someone like ERTS or TTWO should also not sit on their laurels and just depend on old fashion game sales either.
To me, the succesfull company in the future will do both, in the same way Toyota sells the Yaris as well as a huge Lexus....different customers want the same product, but tailored to different tastes. Forward looking companies will do both, as you need the revenue stream from both to truly be succesfull.
But don't get ERTS long and well documented struggles fool you...that's them.
As long as you are innovative, you can keep coming out with the same games, but innovation is the key...EA does not innovate, NTDOY does...and sure enough, what a difference in performance.
Electronic Arts: What Is the Problem?
I can't say I can argue with that logic, given the stock collapse. But one has to wonder what one would be buying with EA? Spore? The Sims? The sporting games? I don't know...I would hope for better and newer IPs, outside of SPORE I guess.
Either EA's leaving the faucet running or the its developers are way over paid, as clearly, its costs are way out of line with its revenues. No wonder it wanted TTWO (who beat out earnings, what 5 quarters in a row now?).
It'll be interesting to see who, if anyone, makes a bid. Disney? Universal (GE?)? Time Warner? Merger with UBIsoft or someone else?
I must say the price of the shares are very attractive due to their slide, but their current weak performance is very unattractive...if EA can't make money in this environment, it speaks of severe internal cost issues and mismanagement.
Video Game Stocks: Beyond the Economic Slowdown
As far as THQI, it is a buy at these levels, as is TTWO. But TTWO to me, could be the next ATVI as the quality of its games are tough to beat. Nothing can hold a candle to GTAIV and one can only hope they reinvest the money towards more franchise. The release of GTA Chinatown DS should further drive sales, even if the DS isn't exactly a hard core machine, it will see simply due to how many DS are out there.
I would rank all the Cos. in this order:
1. ATVI- Top of the game, but again, it cannot fall into the EA trap of doing sequels year after year, as you end up killing franchises with over-saturation. Guitar Hero will be the next big ATVI franchise to fall, the same way Tony Hawk fell.
2. UBISoft-up & coming, beats all forecasts and has a nice wide array of games. Its partially owned by ERTS. I could see this company merging at some point.
3. TTWO- Truly, the talent here is vast. Can they resign the Houser Twins? That is the biggest question at TTWO and expanding its lineup. I rank them 3rd based on potential.
3. ERTS- Puts out a lot of games, but the quality isn't quit there yet, although progress is being made. If Rock Band leaves EA and MTV publishes it on its own, it would be a big loss. Its sporting business also needs help or simply a breath of fresh air, as most games feel like cut & paste from the previous version. The losses and missed earnings estimates is great cause of concern.
4. THQI- barely any debt and tons of cash...they just need to put out better quality games.
5. KNM- Konami...big company, but not so big in the west. DDR franchise will get competition from ATVI's eventual Dance Hero. Its rock game is not very good...I could see a merger with a western partner.
6. Capcom- Said to be looking to merge with a western partner...TTWO? THQI? UBISoft? I'm sure the current financial mess is puttingt those plans on hold, althought the strength of the Yen vs. other currencies could facilitate this. But I doubt it.
Anyways, ERTS missed earnings today, while NTDOY reports no slowdown on its end the very same day (outside of effects of the Yen's strength), shows that customers look for value and quality games...I'm not so sure EA offers either at this point.
Activision Working on Popular 'Guitar Hero' Spinoff
Anyone who's played either Rock Band or Guitar Hero can tell you which game is better as well, so for me, I worry about this franchise for Activision...I also worry about Call of Duty, as at some point that will get old as well. The problem with releasing games each and every year of the same title is they get old real fast...ask Activision about Tony Hawk games, for example or simply ask EA, who for a while was putting out the same games over and over again.
With MTV/EA signing The Beatles onto Rockband for 2009, I repeat...the days of Guitar Hero's giant success are numbered, so ATVI will need to keep doing what its been doing, which is create new winners to replace the old ones.
Consolidation in the Gaming Industry During the Economic Downturn
GE: Struggling Short-Term, But Should Do Fine Long-Term
Long GE, especially at the current prices.
The Take-Two/EA Merger Saga Continues
Why Microsoft's XBox 360 Will Outsell Nintendo's Wii
Usually, you're pretty right on Bruce...but not this time. I disagree with almost all your points. In my opinion, the race is over and the Wii has won. I own a 360 & a Wii and yeah, I enjoy the 360 more (but not that much more), but hard-core gamers aren't the mass market and no...the mass market will not graduate to the 360 and its 10 buttons on one joystick. If they haven't move before historically, they won't move now...the Wii is not a gateway to hardcore gaming, its a gateway to regular gaming that brings people back to their youth when everyone could hope in and play a game of Pac Man, per say, like in the 80s at arcades.
The DS and its success proves it further. The mass market cares about having fun and the Wii delivers that much more efficiently (and all uncompassing) than any 10 button joystick supported console and that will never change.
Why Microsoft's XBox 360 Will Outsell Nintendo's Wii
The 360, in its true glory, requires 1) a hard drive that must be bought off MSFT ($100 at least) and a subscription to Xbox Live, if you want to have Xbox Live...which is the point. That's another $50 per year. What about the WIFI Antenna at $100? Its built in with the Wii and PS3.
So really, you either pony up more money in parts or you have to pay the $299 for the real 360. But no one who buys an arcade 360 will be able to experience the 360 for what it really is and you absolutly need to spend another $50 on Xbox Live. If anything, you're going to have pissed off uneducated parents who buy this thinking its ready out the box...when its not. Its misleading pricing.
So the true 360 pricinig remains at $350, if you argue that the 360 is superior...you need to have access to those features and that means hard drive and Xbox Live subscription.
The NES, SNES, Genesis, etc...all those who hit the magical sales drive of below $200...didn't need extra stuff to enjoy them fully. So while the price has been reached, it really hasn't as you need to pay more money to enjoy all the features of a 360.
What about the fact that you also need an HD-TV? The Wii, does not. In a recession, I don't see people ponying up $350 for a 360 and then $800 for a decent HD-TV.
What about the Red Ring of Death and the fact that many people refuse to get one due to the poor reps? I know someone who bought a new 360 Ultra or whatever the black model is and he got the RRoD in one month. That was in April or May, whenever GTAIV came out, o, so clearly, that's not solved. He played it for hours at at time with GTAIV and sure enough, RRoD. One month Bruce!
I'm not sure what traction you find in Japan, when the PS2 and every other system outsells it...selling 3k per week is fine and dandy if you're coming off selling 200 per week previously, but its still last place.
So I would have to disagree, especially as the Wii can lower its price much more as it is already profitable per unit and therefore, could easily be cut to $199 as well..
I expect to see a bump, but not that big of a bump as the true pricing is still at $350 if you want the whole 360 package.
This is not the same as the previous consoles in history...its a fake entry price point...you should know that Bruce.
It's D-Day For Take-Two Interactive
Invest Cautiously for the Rest of 2008
But anyways, yes, it will be a tough market but I am not yet convinced the rest of tech will be hit as hard Dell.
Why I'm Backing Up the Take-Two Truck
Electronic Arts: Still Wining and Dining Take-Two
Bottom line is at $26 the stock is stolen by EA, as the metrics for TTWO at $26 indicates its priced lower than even THQ, which has nothing going for it. I'd rather skip on that $26 and be patient.
Long on TTWO since $13/share...already made some good profits, but I can still recognize that $26/share is Grand Theft Auto, this time by EA. Call me greedy if you'd like, but I and TTWO management ain't stupid. Its time EA recognizes this or get off the pot and move on somewhere else.
Raise the price and get the deal done or lets move on.
NBC's Olympics Web Strategy Came Out a Loser
That's simply called not knowing the public and how each individidual sports is viewed. I watched these olympics on TV as the web (given all the results posted) would just ruin your experience...and the few times I did check the net, it did ruin it for me as I knew the winners and loser prior to them being shown at night on TV.
Not only that, NBC had so many channels with olympic covergae...why watch these sports on the web, with bad connections, no HD and tiny screens? You thinkn Americans wait every four years to see these sports on a tiny tube? I love the web...but not for sports (outside of results) for exactly the reason that monitors are tiny and not well suited for sports. And I have a 22 inch monitor, but still...rather watch it on TV
March Madness also benefits greatly from office pools...everyplace I've ever worked has ton of people who never wach one second of the games on TV checking the web constantly for results...just to see where they are in the office pool.
So that's a poor comparison as NCAA basketball as developed into something more than just sports fans watch, but something the office world in the US does to pass the time. The olympics, once every four years...will never reach that level and I am surprised a column like this one was written.
I thought it was obvoius, I know my own habits...the olympics on the webt isn't happening, its still better on TV and there's nothing NBC could've done to change that short of coming into my house and hooking up the web on my 60 inch TV
Poor anylisis in my opinion...no amount of live streaming or anything else would've changed my viewing habit. Olympics are meant for the big screen and without the need to check your stat sheet to see if your winning an office pool, there's not much reason to check the net for the olympics. And if I did, yeah...I got to what I know which is Yahoo!. No matter what network you put in for the olympics, I would still revert back to what I know on the web, which is Yahoo! or Google.
Can Sony Dig the PS3 Out of a Rut?
Sales don't lie, we're approaching two years of the next-gen cycle and the PS3 is solidly behind all consoles...I'm suprised its managed to outsell the PS2 on a consistent basis. It will remain that way unless that sucker gets a huge price cut and exclusive games for it. Most gamers could care less about Blueray and the sales show it. If you just care about gaming, there is nothing Blueray brings to the table that the 360 can't do. If there is, what is it? And why haven't people beleive the argument? You cannot argue with facts.
By the way, most games including COD4, GTAIV, and Devil May Cry look better and load faster on the 360 than the PS3 and that is fact, not fanboy flaming, and its been documented by sites such as gamespot.com several times over the past 2 years. I have a Wii & 360 and the odds of me picking up a PS3 are as big as me going to Mars. It ain't happening and I would say that's the prevaling opinion of most everyone. There simply isn't a reason to spend more money on a PS3 than there is to buy a 360 or Wii.
Sony needs help, but I think its becoming a lost cause at this point...I don't see buyers mysteriously coming out in droves for a PS3 two years down the road. Too many have bought a 360/Wii or both and blueray isn't a compelling enough reason to yet dish out another $400 for a system that plays the same games as the 360.