The Zacks Analyst Blog Highlights: Sony, Microsoft, Electronic Arts, Activision Blizzard, International Game Technology and Zynga
Zacks Equity Research
For Immediate Release
Chicago, IL – June 27, 2014 – 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 the Sony Corp (SNE-Free Report), Microsoft (MSFT-Free Report), Electronic Arts (EA-Free Report), Activision Blizzard (ATVI-Free Report), International Game Technology (IGT-Free Report) and Zynga Inc (ZNGA-Free Report).
Video Game Stock Round-Up: Ubisoft and Sony Top May Sales
Post E3, investors’ attention turns to the monthly video-game sales data that provided some encouraging numbers. Sony Corp’s (SNE-Free Report) PlayStation 4 remained the top-selling console for the fifth consecutive month, outselling Microsoft’s (MSFT-Free Report) Xbox One. Ubisoft’s action-adventure game Watch Dogstopped the video-game sales list in May, per NPD data.
The game’s availability on five platforms — Microsoft’s Xbox One and Xbox 360, Windows PC and Sony’s PlayStation 4 and 3 — helped it to push April’s top gameTitanfall from Electronic Arts (EA-Free Report) to #8. April’s #2 game, Activision Blizzard’s (ATVI-Free Report) Call of Duty: Ghosts was relegated to #10.
Nintendo’s racing game Mario Kart 8 was #2 selling game, while MLB 14: The Showtook the #3 slot. Bethesda’s Wolfenstein: The New Order was #4 and Minecraft was #5. A number of game releases on new consoles drove software sales in the month, which soared 57.0% to $274.0 million.
Overall, video game retail sales jumped 52.0% from the year-ago month to $586.0 million, driven by continued strong hardware sales that surged 95.0% to $187.0 million. Strong demand for new consoles from Microsoft and Sony drove the hardware sales.
Video Game Market – Other Stories Now
Nintendo received an adverse ruling from a U.K. court in a patent infringement lawsuit filed by Philips. The court ruled that the Wii maker violated two patents related to hand gestures and motion but not the one related to modeling a body in a virtual environment.
Reportedly, operator of Italy’s state lottery GTECG SpA is inclined to acquire International Game Technology (IGT-Free Report). IGT also attracted preliminary bidding from Apollo Global Management LLC and Carlyle Group LP. Recently, IGT announced that it has hired Morgan Stanley to explore a possible sale. Read: IGT Looks to go Private, Hires Morgan Stanley
Activision’s well-known Toys-to-Life video game franchise, Skylanders is teaming up with General Mills, Immediate Media, IDW and Crayola. General Mills will launch an eight-week cereal program in North America featuring the popular franchise. Immediate Media will launch an official Skylanders magazine in the U.K. this fall, while IDW will create its first official comic book series on the franchise.
Boston Bruins’ forward, Patrice Bergeron, will feature in EA’s upcoming NHL 15cover, after he received the maximum votes beating Montreal Canadiens defenseman, P.K. Subban.
Social game-maker Zynga Inc (ZNGA-Free Report) lost Nasdaq compliance after two independent directors stepped down. By Jul 27, the company is required to submit a plan to Nasdaq outlining its initiative to regain compliance.
Game News
Gluu Mobile launched Kim Kardashian: Hollywood on the App Store and Google Play
EA launched Plants vs Zombies Garden Warfare for PCs on origin and other retailers worldwide
EA launched EA SPORTS UFC at retail for Xbox One and PS4
R.B.I. Baseball released on Xbox One and PlayStation 4
Performance
Over the last 5 days, NetEase was the leading stock as it added about 1.37%. The biggest loser was EA, which lost over 1.43%. However, 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, delisting threats and less-than-impressive product pipeline.
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