Electronic Arts Inc. (ERTS), popularly known as EA, together with Virgin Gaming, is organizing a tournament to celebrate the launch of Battlefield 3, a first person shooter game.
Battlefield 3 is set for an October 25, 2011 launch and the proposed tournament is set for early 2012.
Battlefield 3 Worldwide Conquest Tournament, as the tournament is named, will test the best of the Battlefield members to strategize and complete the objectives that are needed to win the game. The prize money for winning the grand finale is an astounding $1.6 million in cash.
The tournament is touted to be the largest console videogame competition in gaming history where gamers from around the globe can compete.
The announcement of the tournament and the hefty prize money is a commendable marketing ploy adopted by the company to lure hardcore gamers into buying the game and make a dash for the tournament after honing the skills through online or multiplayer channels.
Battlefield 3 is one of the most anticipated games this year, and has won over 50 awards in various game shows around the world. The game boasts of hyper-real graphics, super audio quality, cutting-edge animation and superior gameplay.
The game will be available on Microsoft Corp’s (MSFT) Xbox360, Sony Corp’s (SNE) PlayStation video gaming system and PCs. PC gamers will be able to download the game from EA’s online site, Origin.
EA has a bounty of games to release for this holiday season, the most anticipated being the Battlefield 3 and Star Wars: The Old Republic. Another title from EA’s stable, Crysis, will hit the markets this October.
We believe that high-quality titles, an impressive product line, increasing exposure to online and social games and diversification of the portfolio guarantees market share gains over the long term. Additionally, successful game releases will boost the company’s revenues.
We believe that with EA’s variety of titles and massive fan following, the company is better equipped than many new players to gain traction in the digital format. The strategic acquisitions made by the company in the field of social and casual gaming platforms will also reap benefits in the long run.
However, while we think the new games will shed some light in the next few months, it is hard to discount the gloomy macro environment in North America, increasing competition and weak video game results during the last 12 months. Such factors compel us to remain cautious in the near term.
We therefore have a Neutral recommendation on Electronic Arts over the long term (for the next 3 to 6 months). For the short term (1-3 months), we also have a 'Hold' rating on the stock, as indicated by the Zacks #3 Rank.
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