No Ticket Tarnish From MSFT Halo

According to Advertising Age, film industry executives are blaming Microsoft's (MSFT - commentary - Cramer's Take) Halo 3 video game for the worst October movie ticket sales in years, including a lousy performance by The Heartbreak Kid, a Farrelly Brothers-directed comedy starring Ben Stiller. (Check out my video on this topic from earlier today.)

Attaching the words "Halo 3" to an article is a great way to draw readers, but some basic reasons explain the awful performance of The Heartbreak Kid. Halo 3 was without a doubt the biggest video-game release of the year, drawing $170 million in first-day sales and eclipsing the $125 million generated by predecessor title Halo 2. However, Halo 3 wasn't The Heartbreak Kid's problem, and it isn't the movie business' problem.

Let's break down the facts.

First, what was wrong with The Heartbreak Kid? According to film review Web site RottenTomatoes.com, only 29% of reviews of The Heartbreak Kid were positive. In addition, it was rated R, which eliminated its appeal to families. Stiller's prior film, Night at the Museum wasn't well-reviewed, but it was rated PG and thus a good choice for parents wishing to take their kids to the movies.

Plus, the Farrelly Brothers haven't been on much of a hot streak lately. Box-office takes of their films have been on a downward slope since the triumphant There's Something About Mary. That film brought in $176 million following its 1998 release, according to BoxOfficeMojo.com.

Advertising Age did point out the poor reviews of The Heartbreak Kid, but let's take things a step further. Look back to 2004 when Halo 2 was released. Following the title's Nov. 9 release, the box office had an excellent weekend, with The Incredibles taking in $50 million in its second weekend, and The Polar Express debuting with $23 million in sales. Even Seed of Chucky did $9 million.

But, you say, The Incredibles was a kids movie, not exactly the type of flick Halo fans would go for. Well, recall that the week after Halo's release, National Treasure, a Jerry Bruckheimer-produced action movie, took in $35 million.

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In keeping with TSC's editorial policy, Michael Comeau doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. Comeau is a research analyst at TheStreet.com. In this role he performs stock analysis for TheStreet.com Breakout Stocks, and is also a regular contributor to RealMoney.com. Prior to his arrival at TSC in June 2004, Comeau worked as a Consultant to Toyota Motor North America, performing in-depth research on automotive industry issues, primarily in the areas of alternative engine technologies, competitive analysis and macroeconomics. His primary market interests include consumer technology, specialty retail, and small-caps. Comeau received a bachelor's degree in Finance from Brooklyn College, and has completed Level 1 of the CFA program.. He appreciates your feedback; click here to send him an email.