For Immediate Release
Chicago, IL – December 14, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Electronic Arts (EA), GameStop Corp. (GME), Sony Corporation (SNE), Activision Blizzard, Inc. (ATVI) and King Digital Entertainment plc ( KING).
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Here are highlights from Friday’s Analyst Blog:
Video Game Stock Roundup
Among the top stories this week, research firm NPD reported video games sales data for the month of November. Meanwhile, Electronic Arts (EA) got battered again as videogame retailer GameStop Corp. (GME) slashed the price of EA’s highly anticipated Star Wars Battlefront.
Sony Corporation (SNE) also slashed the price of PS4 as a part of its holiday sales strategy. On the other hand, Activision Blizzard, Inc. (ATVI) moved a step closer to concluding the acquisition of Candy Crush maker King Digital Entertainment plc ( KING).
Top Stories This Past Week
1. As per a VentureBeat report, The NPD Group issued video game sales numbers for the month of November. As per NPD, new game software, hardware, and accessories at physical retailers for the month grew 2% year over year to $2.47 billion. The primary driving factor was an 11% increase in hardware sales to $1.12 billion. Sony’s PS4 emerged as the highest selling console.
Moreover, the report observed that gamers were fast “embracing” newer consoles as reflected in a 22% jump in sales of eighth generation consoles, which include Xbox One, PS4, and Wii U. Last generation consoles sales saw a massive drop of 76%. Notably, eighth gen-consoles comprised 93% of total hardware sales, up 9 percentage points year over year.
Coming to software, sales tumbled 7% to $993.9 million. Despite the fall, an NPD analyst made a key observation that “games were an even hotter item for gift buyers and deal seekers this year than last.” Video games emerged as the top selling retail item on Thanksgiving and Black Friday.
Activision Blizzard’s Call of Duty: Black Ops 3 topped sales for the month, overtaking the likes of Bethesda Softworks’ Fallout 4 and EA’s Star Wars Battlefront. Black Ops 3 and Just Dance 2016 (placed at the bottom) were the two games in the top 10 list that sold higher on Xbox and Wii, respectively, than PS4.
NPD also pointed out that despite being one of the finest games of 2015, Rise of the Tomb Raider could not break in to the top 10 list as it was just “exclusive to one console”. However, Microsoft’s Halo 5: Guardians compatible with only Xbox, did manage to feature on the list at the eighth spot. Other games included in the list are Madden NFL 16, NBA 2K16, FIFA 16, Need For Speed and Assassin’s Creed: Syndicate.
Moreover, new combined software sales of Xbox One, PS4, and Wii U were the highest ever in Nov 2015,increasing 34% from Dec 2014, which to date held the record for highest combined software sales.
Moving to peripherals and interactive toys, sales grew 6% to $357.7 million. It is to be noted that NPD doesn’t include mobile, digital, and GameStop’s second-hand market game sales. It just considers new games sold at retailers.
2. EA stock was again battered as GameStop slashed price of Battlefront by as much as $20. Even Amazon.com took down the price to $39.99 for PS4 and PC compatible versions as per TheStreet. Nonetheless, the price cut has been touted by an analyst as a premeditated move by both EA and GameStop to drive retail sales of Battlefront in the holiday season. Dismissing any weakness in the title, he said that the same trend was witnessed for Battlefield 3 and 4. The title is expected to sell 13 million copies.