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
TheStreet Open House

8 Major Video Games Players Investors Should Watch During E3

Stock quotes in this article: NTDOY, MSFT, SNE, TTWO, EA, ATVI, GME, DIS

Updated from Friday, June 6, with views from Bank of America Merrill Lynch on Take Two.

NEW YORK (TheStreet) -- New content, software and titles are expected to take the spotlight at this year's E3 Electronic Entertainment Expo in LA, raising the odds investors are going to trust that the upcoming console cycle will be a thriving one, and that the sector will continue to deserve their attention.

Gone is the cautious atmosphere of last year's E3. The early successes of the current console cycle heading into the event has greatly alleviated 2013's worries that the Nintendo (NTDOY) Wii U's failure to take off was a bad sign for the Xbox One and PS4. With Xbox One and PS4 sales already burgeoning early on in the cycle, Sterne Agee analysts are estimating that the installed base of Xbox One and PS4 could grow to up to about 100 million units for each by the end of the current cycle even though PS4 sales are currently stronger than Xbox One sales. That's up from 80 million units from the prior cycle.


WATCH: More tech videos on TheStreet TV | More videos from Keris Alison Lahiff

The annual E3 game conference will officially take place from June 10 to June 12 in Los Angeles, with presentations trickling in starting June 9.

The success of these two consoles so far has helped fuel good performance in the games group overall in the recent quarters. "We expect this trend to continue over the next 12 to 24 months as software sales turn positive later this year and set the stage for top-line acceleration next year," Sterne Agee's interactive entertainment analyst Arvind Bhatia said in a client note.

Strong software availability is, of course, key to driving hardware sales in the long-run and is a forward-looking data point of great interest to investors. With that being said, the upcoming E3 should bolster confidence that the early successes of Xbox One and PS4 will be sustainable beyond the early adopters, offsetting the impact of Nintendo's weakness on the games group.

At the upcoming event, Bhatia is expecting a strong lineup of next-gen titles for both the PS4 and Xbox One, with console-makers in particular aiming to highlight exclusive IPs as a way to differentiate themselves from the competition, given that price is no longer a differentiating factor. For instance, Microsoft (MSFT) recently announced a Kinect-less Xbox One for $399 coming on June 9, which matches the price of the PS4 from Sony (SNE).

Various Wall Street and industry analysts dive into the details of the content they're anticipating at this year's E3, by developer, publisher and console maker.

Ubisoft

What Sterne Agee says: Ubisoft has a good track record when it comes to E3. In the past, the company has been able to showcase its titles well and has been successful in throwing in a few surprises, such as the 2012 reveal of Watch Dogs. There should be a strong showing from the company again this year.

Key titles in focus will be Assassin's Creed Unity, Far Cry 4, Tom Clancy's The Division and The Crew. It wouldn't be surprising if management decided to share sell-through data on the recently released Watch Dogs title.

What Enders Analysis's Heloise Thomson says: There will definitely be a lot floor space dedicated to Ubisoft's Assassin's Creed Unity, where the protagonist will be returned to an urban historical setting (during the French Revolution). This is ideal for actual stealth-play rather than obvious battles on land and the high seas.

"I enjoyed the relaxed nature of Black Flag but it's not as engaging as creeping around recognizable landmarks and narrow streets."

Assassin's Creed Unity is expected to be released during the fourth quarter of 2014.

1 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,804.71 -238.19 -1.40%
S&P 500 1,946.15 -26.14 -1.33%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • 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