Face-Off on Stocks: Activision Blizzard, Electronic Arts, Take Two Interactive

The video game industry is in a slump, with sales down by about 12% over last year. As sales slid, so have the stocks of companies such as Activision Blizzard (ATVI), Electronic Arts (ERTS) and Take Two Interactive (TTWO), which recently reported second-quarter earnings.

Each of these companies has created terrific game franchises. Activision Blizzard, for example, is known for Guitar Hero, Call of Duty and Tony Hawk among others, while Electronic Arts is best known for titles such as FIFA 10, Madden NFL 10 and Need for Speed SHIFT.

Take Two Interactive, which tried but failed to break into EA's turf in the sports genre, sells the highly popular Grand Theft Auto game.

With new motion-controlled gaming consoles expected out from Microsoft (MSFT) and Sony (SNE) by the end of the year, investors may want to consider investing in the industry now, before sales for the new consoles pick up towards the holiday season. But which companies will do best?

For the bull and bear cases on Activision Blizzard, Electronic Arts and Take Two Interactive, see the video below.

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tough market this yr for this sector and most others too, esp w/ loss of momentum in economic growth overall, but kids, and grown kids like their games, plus approaching a generally good cyclical period for the sector. I like ATVI,numbers for Q2 little slack but optimistic about Q3 and 4, esp w/ stronger online sales already last qtr. selling gets overdone, I'll prob buy, but not too aggressively, and if looks like economy going in the toilet, won't buy anything, plus stick w/ strict mental stocks on all I've got.Wed lookimg good so far-DOW futures only down 128 at 0700. Y'all have a good day now.

August 11 2010 at 7:07 AM Report abuse rate up rate down Reply


i wont say hell just froze over, but seeing the video i actually agree with them.

about EA and online gaming:

EA has a long and shaky history when it comes to online gaming, especially MMORPG's.

laundry list of casualties aside, they have recently been putting quite abit of resources on the upcoming MMO game, Star Wars: The Old Republic, a game being developed by Bioware, or Bioware/Mythic rather.

EA expects large profits for the amount of resources they have given Bioware/Mythic. as a long time Fan of Bioware i hope for them the best,
it doesnt take much to be on EA's chopping block.

out side of the MMORPG genre, i agree with Ann on EA's venture in social gaming.
there is still plenty gold to be found in such games, not to mention how they can continued to be improved upon as technology moves forward.

ill be sure to share this article with a couple of folks after a few games of SC2.

nice work Hutheesing

August 10 2010 at 11:14 PM Report abuse rate up rate down Reply