This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EA to Fight Activision With New Titles

Stocks in this article: ERTS ATVI

NEW YORK ( TheStreet) -- As Electronic Arts (ERTS) prepares to report its first-quarter earnings Tuesday afternoon, investors will be looking to gain insight into two of the video game publisher's biggest titles ever, Battlefield 3 and Star Wars: The Old Republic, which are poised to take on entrenched games from rival Activision (ATVI).

While these titles mark a departure from EA's recent, aggressive push into social, casual and mobile gaming -- including its $750 million acquisition of PopCap Games -- they're a significant part of the company's strategy to create fewer, bigger titles that incorporate digital components.

"The biggest elements that matter right now are Star Wars and Battlefield 3," said Eric Handler, an analyst with MKM Partners. "It's a matter of just waiting on execution."

The huge titles are also an opportunity for EA to grab market share from Activision.

Battlefield 3, a first-person shooting video game, is being positioned as a competitor to Activision's wildly popular Call of Duty franchise. Activision's most recent title in the series, Black Ops, generated more than $1 billion in sales only a month after its release, becoming the best-selling video game ever in the U.S. Its newest edition, Modern Warfare 3, will hit stores in November, several weeks after the release of EA's Battlefield 3.

" Battlefield 3 is designed to take on Modern Warfare 3, ," EA CEO John Riccitiello said in April at an industry conference. "If you're looking at a battle of the titans, like Red Sox vs. Yankees, or Google (GOOG) vs. Microsoft (MSFT), this is it."

EA is betting big on the success of Battlefield 3 -- it's already planning to spend $100 million on marketing campaigns for the game.

Big franchises like Call of Duty and Battlefield 3 are attractive to gamers because of their online, multi-player features. They also provide publishers with new revenue streams via the sale of expansion packs, or supplemental storylines and other related content.

Investors will be waiting for further insight into pre-order numbers for Battlefield 3. In May, the company said pre-orders for the game were up significantly from those its predecessor, Battlefield: Bad Company 2, saw in 2010.

Star Wars: The Old Republic is expected to be released this holiday season.

Another upcoming title EA investors want to know more about: Star Wars: The Old Republic, the company's upcoming massively multi-player online (MMO) game. EA announced late last week that pre-orders of the game are now available and it will be available during the holiday season, though it hasn't yet revealed an official release date or subscription fees.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs