EA Set to Launch NFL BLITZ - Analyst Blog
21 Outubro 2011 - 4:00PM
Zacks
Video game developer and publisher Electronic Arts
Inc. (ERTS), popularly known as EA, recently announced
that it will release the new version of NFL Blitz in
January 2012. The game will be available on Sony
Corp.’s (SNE) PlayStation for $14.99. Gamers can also
download the game on Microsoft Corp’s (MSFT) Xbox
LIVE Arcade for 1200 points.
NFL Blitz has an interesting history. The game was
originally released by Midway Games way back in 1997. In 1998, the
first console version was launched for Nintendo 64 and PlayStation,
with several console editions released between 1998 and 2003.
However, in 2005, Midway lost the NFL license, but launched
Blitz: The League, featuring fictional players and teams
in a fictional league. The game was a huge hit and prompted a
sequel known as Blitz: The League II, which was released
on PlayStation 3 and Xbox 360 in 2008.
Post Midway’s bankruptcy in 2009, EA Sports acquired the NFL
Blitz intellectual property (IP). Incidentally, EA is the
exclusive holder of NFL's video game rights. EA Sports expects the
new NFL Blitz to be an "arcade" football game, different
from the simulation-oriented Madden series.
NFL Blitz will mark the first game of the franchisee to
release in high definition (HD) and carry the official NFL tag. The
game has different online modes where gamers can play
co-operatively or competitively against each other.
The current series offers a number of features, such as the
seven players per side as opposed to eleven in the real life game.
The original 1997 version had also seven players, but in the later
versions of 2002 and 2003, number of players was increased to eight
and eleven, respectively.
The new game has been developed by EA Tiburon and has been rated
E10+ (Everyone 10 and older) by the Entertainment Software Rating
Board (ESRB). We believe NFL Blitz will cater to a large
customer base and the ESRB rating will ensure enthusiastic
participation from the younger generation. Therefore, the new game
may be expected to boost the company’s top-line growth going
forward.
However, we believe the new series will face strong competition
from another popular franchise from EA called Madden NFL,
which imitates real life gaming more effectively than NFL
Blitz. Therefore, we tend to think that gamers who are ardent
followers of EA’s simulation games will find the arcade game less
attractive.
Moreover, we also note that EA is hugely popular for mature
games such as Medal of Honor and Battlefield and the child gaming
market is a relatively new territory for the company. We expect EA
to face significant competition from established players such as
The Walt Disney Co. (DIS), Hasbro
Inc. (HAS) and Mattel, Inc. (MAT) going
forward.
Our Take
NFL Blitz is the second franchisee that will be revived
by EA. Earlier, EA announced that the first-person shooter
franchisee Syndicate, a remake of the original game by
Bullfrog productions that was last published in 1996 would soon be
available. The new game is also expected to launch in early
2012.
We believe EA boasts a strong product pipeline for fiscal 2012
and beyond, which will drive top-line growth going forward.
Further, the revival of cult classics such as Syndicate
and NFL Blitz in early 2012 will boost its market share in
our view.
However, the gloomy macro environment in North America,
increasing competition from Activision Blizzard
Inc. (ATVI) and weak video game results over the last 12
months compels us to remain on the sidelines.
We, therefore, have a Neutral recommendation on Electronic Arts
over the long term (for the next 3 to 6 months). Electronic Arts
has a Zacks #3 Rank, which implies a Hold rating in the short
term.
ACTIVISION BLZD (ATVI): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
ELECTR ARTS INC (ERTS): Free Stock Analysis Report
HASBRO INC (HAS): Free Stock Analysis Report
MATTEL INC (MAT): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
SONY CORP ADR (SNE): Free Stock Analysis Report
Zacks Investment Research
Mattel (NASDAQ:MAT)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Mattel (NASDAQ:MAT)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024