This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Take-Two Gains Ground on Electronic Arts

"I think people have to readjust and understand that the sports market isn't 100% theirs," said Joe Spiegel, a fund manager and managing member of Dalek Capital. "There's a viable competitor out there with a product that's just as good, if not better." (Spiegel has no position in EA or Take-Two).

Take-Two, which signed its co-publishing deal with Sega on the ESPN titles in June, juiced sales of NFL 2K5 by cutting the price on the title. The company is offering its line of ESPN games, which include NFL football, NBA basketball and NHL hockey, at a retail price of $19.99. In contrast, EA's suggested retail price for Madden for PlayStation2 and Xbox is $49.95. And the company charged $59.95 for a special-edition version of Madden this year.

To some extent, consumers who bought NFL 2K5 simply may be bargain hunters who purchased Madden because it was on sale. "We believe the ESPN title is driving a more casual gaming customer into the sports genre, which is healthy for the overall market," Shawn Milne, an analyst with Friedman Billing Ramsey, wrote in a research note issued Tuesday. (Neither Take-Two nor EA are investment banking clients of Friedman Billings Ramsey, and Milne does not own shares in either company.)

Other analysts worry that NFL 2K5 will soon cut into EA's sales. Some consumers who have bought Take-Two's game might otherwise have waited until the football postseason to purchase Madden, when EA typically cuts the game's price.

The big problem for EA, however, may arrive during the holiday season when, analysts note, a large number of games are bought by parents. To them, according to Pachter, ESPN's brand name is probably as recognizable as John Madden's, if not more so. And at half the price of EA's game, it may be hard to pass up.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TTWO $31.03 0.98%
AAPL $123.20 0.35%
FB $94.32 0.16%
GOOG $625.80 -0.23%
YHOO $37.64 -0.52%

Markets

Chart of I:DJI
DOW 17,558.84 +118.25 0.68%
S&P 500 2,081.32 +13.68 0.66%
NASDAQ 5,057.6680 +17.8920 0.36%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs