Golfing fans are all set to get busy with their virtual PGA
tours ala Tiger Woods style from March 30, 2012, when
Electronic Arts Inc.
's (
EA
)
Tiger Woods PGA TOUR 13
and
Tiger Woods PGA TOUR 13:The Masters Collector's Edition
hit the stores.
Developed by EA Tiburon, both these games will be available on
Microsoft Corp.
's (
MSFT
) Xbox 360 and
Sony Corp.
's (
SNE
) PlayStation 3.
Tiger Woods PGA TOUR 13
is priced at $59.99 while
Tiger Woods PGA TOUR 13: The Masters Collector's Edition
will be available for
$69.99.
Apart from the regular features, the latest editions consist of
new attractive features like the revamped swing mechanics, which
help the players to better control the swing tempo, ball position
and stance. Additional features include "voice-enabled and
controller-free sports simulation". It consists of "Tiger Legacy
Challenge mode" where gamers can experience the golfing legends
past achievements. Moreover, the games have a social feature where
gamers can compete against one another and earn points.
Tiger Woods recently returned to his winning best at the Arnold
Palmer Invitational after two-and-a-half-year drought. Thus, we see
the release of the games to be perfectly timed. Over the past few
years, Tiger Woods had to deal with several personal life scandals,
which overshadowed his sporting feats. During that phase, EA also
witnessed a slump in demand for the game.
Cashing on Wood's recent victory, EA's PGA franchise is expected
to see sales rebound and regain its former glory. EA has earned a
name for developing and publishing quality games over the last few
years. The
Tiger Woods PGA TOUR
franchise is of the same genre and will gain significant customer
response going forward, in our view. We note that this is the 22nd
season of the franchise and its popularity reflects significant fan
following, which will drive growth going forward.
EA's pipeline consists of high-quality titles and most popular
franchises. Moreover, with the increasing online exposure, social
games guarantee market share gains over the long term.
However, the gloomy macro-economic environment, increasing
competition and weak video game sales results over the last 12
months, compel us to remain cautious in the near term. Competition
from
Activision Blizzard Inc.
(
ATVI
),
Zynga Inc.
(
ZNGA
) and
International Game Technology
(
IGT
) may act as headwind going forward.
Moreover, the whole video game industry has been plagued by weak
consumer spending and troubled economic conditions. In February,
Electronic Arts' much-awaited
Kingdoms of Amalur: Reckoning
ranked fourth among the top-ten games. However, EA's
Battlefield 3
seemed to have lost its sheen and plummeted to the 10th spot from
the fifth position that it held in the preceding two months,
according to market research firm, The NPD Group.
Despite the dismal figures in February, analysts tracking the
video game industry believe that few big game launches from
bellwether publishers might boost revenues in March. Games
including Nintendo's
Mario Party 9
,
Konami Corp.
's (
KNM
) Silent Hill Downpour and Capcom's Resident
Evil: Operation Raccoon City
are slated to be launched in March. Incidentally, EA's much-coveted
Mass Effect 3
has already been released and has received a huge response.
Additionally, we believe that companies with significant
exposure to the digital business will stand out even in this
sluggish market. Moreover, new game releases and improvement in
consumer spending will act in favor of the industry.
We have a Neutral recommendation on EA over the long term (for
the next 3-6 months). Currently, EA has a Zacks #3 Rank, which
implies a 'Hold' rating in the short term.
ACTIVISION BLZD (
ATVI
): Free Stock Analysis Report
ELECTR ARTS INC (
EA
): Free Stock Analysis Report
INTL GAME TECH (
IGT
): Free Stock Analysis Report
MICROSOFT CORP (
MSFT
): Free Stock Analysis Report
SONY CORP ADR (
SNE
): Free Stock Analysis Report
ZYNGA INC (ZNGA): Free Stock Analysis Report
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