Pivotal Point for Electronic Arts

This column was originally published on RealMoney on Jan. 12 at 2:33 p.m. ET. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

It's not always easy being the 800-pound gorilla in an industry, especially if you're Electronic Arts (ERTS Quote).

The video-game titan is arguably in the toughest strategic position among all of the publicly traded video-game software companies. The console cycle is at a volatile point, favoring smaller publishers that can benefit tremendously from just a few popular titles. Companies can no longer sit back and rely on general industry growth.

As more consumers snatch up next-generation consoles over the next couple of years, the going will get even tougher. Big-name hits are now driving the business, and game-production costs are skyrocketing. Electronic Arts can't afford a major miss. ...