Whilst perusing various sites this morning, I found a very interesting article about the upcoming incarnation of Electronic Arts Sports' (NASDAQ: ERTS) Madden NFL 10 --- which highlights Troy Polamalu and Larry Fitzgerald on the cover (glad they chose a Steeler for the Madden Curse). There are some interesting developments in the game this year, especially the "fumble pile," which could make the game more fun to play - but will it help the stock? Make sure to browse the article for the five new developments (gang tackling and new formations!) in the latest incarnation of the video game franchise.
On to the question of whether these developments will or won't help the stock. On a monthly basis, ERTS is struggling. The stock is waging war with the $20 region, which has capped rally attempts in the past. This level acted as support in the past, which could strengthen its resolve as it acts as resistance. The big problem is the fact that ERTS's 10-month moving average is dropping into the picture, tracking the stock like a linebacker running down an unsuspecting quarterback. Since the beginning of 2008, shares of the gaming firm have managed to close atop their 10-month and 20-month moving averages just twice. This resistance is rather stout, and could thwart any rally attempt.
That said, what about the boost that sales of Madden NFL 10 could give ERTS? The stock could enjoy some support from its rising 10-week moving average, which could combine with a boost in sales to help propel the shares higher. However, the key equation is sales, and the current economic environment doesn't lead to dropping $50 for a game. Nevertheless, sales should be solid as always, simply based on the fact that this is the latest installment of the Madden games. As the game improves, sales may as well - which could certainly help ERTS.
Keep an eye out next week, as ERTS is slated to report quarterly earnings on May 5. The good news is that ERTS has performed well in the earnings confessional - it this performance continues, shares of ERTS could enjoy a bit of a boost.
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Reader Comments (Page 1 of 1)
4-30-2009 @ 12:41AM
DG said...
Thanks for that - I learned absolutely nothing about this company's situation or the potential of the new Madden to affect it.
DG
5-07-2009 @ 11:53AM
BetYourSport said...
Every year I get so excited for the next Madden. It gets so much hype with the "new" features. Sometimes the new features are really nice. Sometimes they just flop. What I would really like to see for once is them fixing the bugs in their game first. Then add on some new features. It's starting to get old. I'm sure 3 months into playing this years game I'll throw a fit and start with the threats of never buying Madden again. We all know I am just lying to myself though.
Bet Your Sport Blog
5-07-2009 @ 11:56AM
BetYourSport said...
One last thing, EA if you are reading this, PLEASE bring improve the user catch on offense and make the fb dive more realistic.
http://www.betyoursport.com/blog
7-10-2009 @ 6:31AM
Raymond said...
This article isn't very useful. ERTS is much more than just Madden 2010, it is not likely to play anything other than a very minor role in its long term prospects. To think that ERTS has recently acquired several developer studios, among them Bioware, which alone could be responsible for releasing a massive hit MMORPG which could rake in hundreds of millions of dollars a year for ERTS on a continuous basis and it becomes painfully obvious how narrow and shortsighted this article is. It makes it sound like ERTS with its massive holdings and large stable of games lives or dies by the Madden franchise.