Once the master of the game, Nintendo (NTDOY) has fallen behind in the gaming industry. It reported a 46% drop in profits in its recent quarter, as reported in Reuters. Nintendo is trying to do "catch up" with rivals Apple's (AAPL) iPhone and Google's (GOOG) Android, both or which have strong gaming platforms.

Nintendo is launching the first handheld 3D gaming system without glasses later this month. Nintendo of America's president, Reggie Fils-Aime, expects that the 3DS will sell even faster than its original DS device, which sold 150 million units to date.

Continue reading Nintendo to Launch First 3D-Gaming System Without Glasses

Nintendo to Launch First 3D-Gaming System Without Glasses originally appeared on BloggingStocks on Mon, 07 Mar 2011 09:30:00 EST. Please see our terms for use of feeds.

Things look to be pretty quiet on the economic calendar this week. Here are the highlights:

• Tuesday: Weekly chain-store sales
• Wednesday: Federal budget balance for January
• Thursday: Wholesale trade data in December
• Friday: Trade balance in December and the weekly inflation survey

However, three iconic companies -- Walt Disney (DIS), Coca-Cola (KO) and Hasbro (HAS) -- highlight this week's quarterly results. Here's a look at what analysts surveyed by Thomson Reuters are anticipating from these and others.

Continue reading Week in Preview: Coca-Cola, Disney and Hasbro Earnings

Week in Preview: Coca-Cola, Disney and Hasbro Earnings originally appeared on BloggingStocks on Sun, 06 Feb 2011 12:30:00 EST. Please see our terms for use of feeds.

This source says that Nintendo's quarterly operating income plunged more than 40%. The forecast for the year was likewise troubling. Nintendo believes its profit may drop 12%. This guidance was worse than expected. We've talked here before about Nintendo perhaps seeing a slowdown in the Wii fad. We've also discussed the issue of currency pressures. According to this article, the problems caused by the yen might be abating somewhat.

Continue reading Nintendo had a difficult quarter -- Super Mario not so super anymore?

Nintendo had a difficult quarter -- Super Mario not so super anymore? originally appeared on BloggingStocks on Thu, 07 May 2009 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Could GameStop make your portfolio Wii Fit?

Could GameStop make your portfolio Wii Fit? originally appeared on BloggingStocks on Mon, 23 Mar 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Electronic Arts crashed in Q3: Is it really a value?

Electronic Arts crashed in Q3: Is it really a value? originally appeared on BloggingStocks on Wed, 04 Feb 2009 10:55:00 EST. Please see our terms for use of feeds.

Continue reading Nintendo Wii continues crushing the competition in December

Nintendo Wii continues crushing the competition in December originally appeared on BloggingStocks on Wed, 31 Dec 2008 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Sony and Microsoft won't admit Nintendo is a competitor

Sony and Microsoft won't admit Nintendo is a competitor originally appeared on BloggingStocks on Mon, 08 Dec 2008 11:57:00 EST. Please see our terms for use of feeds.

Nintendo's Wii sees patent infringement claims originally appeared on BloggingStocks on Thu, 21 Aug 2008 15:46:00 EST. Please see our terms for use of feeds.

Microsoft (NASDAQ: MSFT), a competitor of IBM (NYSE: IBM) and Google (NASDAQ: GOOG), will report its earnings for the fourth quarter on Thursday. According to Trey Thoelcke's earnings summary, the software giant will be expected to produce sales of about $15 billion on earnings per share of 47 cents. These numbers would represent double-digit growth rates for each metric.

According to this estimates page at AOL Finance, Microsoft has cultivated a reputation for being reliable when it comes to delivering on Wall Street expectations. It certainly has the assets to keep this trend going. The company's operating-system monopoly, as well as its incredible success with the Office suite of products, guarantees a steady stream of cash flow and bottom-line predictability. Other investments, such as the Xbox 360 and the company's various Internet properties, aren't as guaranteed. In fact, Microsoft has engaged a very strange battle (strange to me and others, at least) to buy Yahoo! (NASDAQ: YHOO) to bolster its future prospects on the 'net.

So, here's what investors should be looking for. I will be very interested in what management has to say about its thoughts regarding Yahoo! and its utility for Microsoft. Is it an absolute necessity? I doubt it, and I really do hope that shareholders will finally get some closure on this subject. The best thing would be for Microsoft to announce that it is done with the portal. And in terms of the Xbox 360, I would be interested in hearing any new marketing strategies being readied for the holiday season and if the current recessionary environment will have any effect on sales. Microsoft recently reduced the price for one Xbox 360 model as a way of increasing that system's value proposition in relation to the Sony (NYSE: SNE) PlayStation 3 and the Nintendo (OTC: NTDOY) Wii. The company also has entered partnerships with General Electric's (NYSE: GE) NBC Universal and Netflix (NASDAQ: NFLX), according to Variety, to make its Xbox Live asset even more attractive to users looking for cool content such as movies and TV shows.

Continue reading Earnings preview: Microsoft to report on Thursday -- is it a buy?

Earnings preview: Microsoft to report on Thursday -- is it a buy? originally appeared on BloggingStocks on Tue, 15 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.

Activision closed on its transaction with Vivendi Games Thursday and officially became Activision Blizzard (NASDAQ: ATVID), according to an article at SmartMoney.com. And I am pretty excited at the prospects for the new business (I am a shareholder). It's going to be a tough competitor against Electronic Arts (NASDAQ: ERTS) and Take-Two Interactive (NASDAQ: TTWO). (Of course, the latter two might merge at some point.)

Activision is riding high with its Guitar Hero franchise, and Vivendi Games brings an incredible asset to the table in the form of online gaming sensation World of Warcraft. I can't say I know much about World of Warcraft the game itself, but I know it has a huge following. What else do I need to know, right? For 2009, management at Activision Blizzard expects pro-forma operating income of over $1 billion and perhaps $1.20 or more in terms of earnings per share. That puts the stock, which rose over 5% on Thursday and closed with a price of $31.77 per share, with a P/E ratio a little over 26. That isn't too bad a valuation considering the growth potential. And when the holiday season comes around, I'm sure people will still be buying the publisher's software for gifts, recession or not. Whether it's the Sony (NYSE: SNE) PlayStation 3, the Microsoft (NASDAQ: MSFT) Xbox 360, or the Nintendo (OTC: NTDOY) Wii, gamers will be buying the company's products for these platforms in droves.

The stock has retreated from the highs it reached back in June when I wrote about it, but I am still bullish on the thesis here. Activision Blizzard should do really well, but with the markets in turmoil, you can probably wait for a pullback before buying.

Disclosure: I own Activision Blizzard; positions can change at any time.

Activision Blizzard set to rock the market originally appeared on BloggingStocks on Fri, 11 Jul 2008 14:24:00 EST. Please see our terms for use of feeds.

THQ's (NASDAQ: THQI) Q4 results were not good at all. Revenues were up over 8% to $187 million, but the software publisher lost an adjusted $0.37 per diluted share from continuing operations. Last year at this time, THQ generated positive adjusted net income of $0.13 per diluted share from continuing operations. The full fiscal year was no better -- revenues were basically flat at $1 billion. The company lost an adjusted $0.23 per diluted share from continuing operations during the year compared to an adjusted profit of $1.20 per diluted share from continuing operations in 2007.

This publisher is no Activision (NASDAQ: ATVI) or Electronic Arts (NASDAQ: ERTS) right now. Its slate is performing poorly, and the company's stock is likewise in the dumps. But what about the future? A few years back, THQ wasn't a bad investment decision. I have a feeling that THQ will rebound as the current console cycle continues its forward path, especially when further price cuts in hardware make their way to market.

THQ, however, needs to get its slate back on track, and to really go after the Sony (NYSE: SNE) PlayStation 3 and Microsoft (NASDAQ: MSFT) Xbox 360 players. It seems to be doing OK with the Nintendo (OTC: NTDOY) Wii platform in terms of revenue mix. Perhaps the deal struck with DreamWorks Animation (NYSE: DWA) for a video game based on the animation company's 2010 feature Master Mind will help.

Nevertheless, there is nothing exciting in the earnings release, nothing that makes me think that THQ is out of the dark woods yet. Again, though, I would expect the publisher's stock to rebound in the future. Question is, how patient will investors be?

Disclosure: I own shares in Activision; positions can change at any time.

THQ would like to forget its last fiscal year originally appeared on BloggingStocks on Wed, 07 May 2008 16:15:00 EST. Please see our terms for use of feeds.

The video-game sales report for the month of March is in. The NPD Group, a market-research company, said that sales of hardware and software jumped 57% compared with March of last year, coming in at $1.7 billion. Hardware revenue grew 46%, while software sales leaped by 63%. One of the best analysts of the video-game sector, Michael Pachter of Wedbush Morgan, thought that software sales might increase 47% from last year.

That's okay, though -- video games certainly have the right, as well as the ability, to surprise to the upside, especially when Nintendo (OTC: NTDOY) released the incomparable Super Smash Bros. Brawl for the Wii in March. I don't think there's one soul on the planet that didn't expect that title to be tops in March -- it sold 2.7 million units. Seriously, many gamers are addicted to this. I know one individual who still plays several rounds of smash-brawling antics twice a day! The title definitely drove Wii sales -- the console sold 67% more units in March than it did in the previous month.

The data continue to show that video gaming is hot, and that quality publishers such as Electronic Arts (NASDAQ: ERTS) and Activision (NASDAQ: ATVI) should be investigated as potential ideas on pullbacks. However, I think Nintendo is the bigger one to look at now since the Wii continues to do well and since it has an interesting putative catalyst coming up in May with the Wii Fit exercise system. Of course, you may just want to look right now. 'll like Nintendo's stock a whole lot better if it gets below $60 per share. No matter what, though, the company is still giving Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) a nice run for their collective money. With the DS, the Wii, Mario, etc. -- Nintendo certainly commands respect, I'll say.

Disclosure: I own shares of Activision; positions can change at any time.

Video-game sales super-smashed analyst's prediction originally appeared on BloggingStocks on Fri, 18 Apr 2008 09:00:00 EST. Please see our terms for use of feeds.

Best Buy ramping up marketing for Nintendo's Wii Fit game release originally appeared on BloggingStocks on Tue, 08 Apr 2008 12:28:00 EST. Please see our terms for use of feeds.

THQ (NASDAQ: THQI) is not casual when it comes to casual gaming. What is casual gaming, you ask? It is a genre of videogaming for people who don't want to learn a bunch of button combos for a complex first-person shooter or don't possess the desire to spend fifty hours winding their way through a vast role-playing universe. And it just might be an important avenue of growth for the videogame industry, since it opens up new markets beyond the hardcore gamer. Publishers such as Activision (NASDAQ: ATVI) and Electronic Arts (NASDAQ: ERTS) know that casual-gaming strategies are important these days, as do console makers Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE). Heck, Nintendo's (OTC: NTDOY) overall strategy is arguably completely casual in nature, considering the appeal of the Wii.

THQ announced the other day that it would buy Elephant Entertainment and enter into a publishing deal with Oberon Media. Both of these companies are purveyors of casual-gaming entertainment and they are meant to broaden the scope of THQ's offerings in this area. Expectations are for casual games to grow significantly over time.

It may be a smart thing for THQ to grow its casual-gaming business, but it needs to focus right now mostly on getting its main pipeline back in order. Recent delays for certain titles, as well as sagging sales of games that were supposed to do well, have caused THQ's stock to fall; in fact, THQ's recent quarter was kind of bad, in my opinion. So, yes, go after the casual market -- but remember the less-than-casual and hardcore players as well, as they are major drivers for the success of a gaming slate.

Disclosure: I own shares of Activision; positions can change at any time.

THQ is not casual when it comes to casual gaming originally appeared on BloggingStocks on Wed, 02 Apr 2008 11:12:00 EST. Please see our terms for use of feeds.

If I had a dime for every time a person asked me "Is Rock Band ever coming out for the Nintendo (OTC: NTDOY) Wii?" I'd have more money than Electronic Arts (NASDAQ: ERTS) and Viacom (NYSE: VIA) combined. Seriously. Now, though, Wii fans can see the light at the end of the tunnel because Rock Band debuts on the popular platform on June 22 of this year. I don't think any gamer on the planet expected the title to not come out for the Wii.

Not only is this great news for Wii users, but it's also excellent information for shareholders of EA and Viacom. As Richard Driver pointed out, the game is a valuable asset for Viacom. EA benefits because Rock Band is the publisher's answer to Activision (NASDAQ: ATVI)'s Guitar Hero franchise. In fact, Nintendo really stands to benefit this summer from both Guitar Hero and Rock Band because a version of the former will be coming out for the Nintendo DS handheld. There's definitely going to be a rock rumble happening when the dog days are upon us, although I'd expect that Rock Band for the Wii will have a much bigger impact. That doesn't seem too hard to predict considering that music games of these types work better on consoles, in my opinion.

This is going to be one hell of a test for Activision, EA, Viacom and the Wii. Will users adopt Rock Band in droves? Will the Guitar Hero franchise be threatened? In theory, the Wii is a console for casual gamers who just like to play some tennis or a few of the extremely fun midway diversions that can be found in the awesome title Carnival Games -- will they go for something more expensive and more involved? My prediction -- Rock Band will be a hit, but it won't sell a ton of units until the holiday shopping season is upon us. Can't wait to see what happens come June. Till then, rock on, my friends!

Disclosure: I own shares of Activision; positions can change at any time.

Wii users will soon have access to 'Rock Band' originally appeared on BloggingStocks on Tue, 25 Mar 2008 10:35:00 EST. Please see our terms for use of feeds.

I don't have to tell you how utterly, unbelievably, unequivocally popular Activision's (NASDAQ: ATVI) Guitar Hero game is. It's currently selling tons of units on the Nintendo (OTC: NTDOY) Wii, the Microsoft (NASDAQ: MSFT) Xbox 360 and the Sony (NYSE: SNE) PlayStation platforms. It's too tough for me to play, but legions of others are having a grand old time living out their rock-and-roll fantasies.

I've been wondering for a while now if the DS would ever get a Guitar Hero game. Let's be honest -- all of us know several kids and/or adults who own one of these handhelds; they're like everywhere (and, yes, I want one too, to be frank, although I hate small game devices). I was thinking that Activision was leaving a lot of money on the table by not programming a version for Nintendo's handheld. But then I thought that a DS version would be like an insult to the image of the franchise -- how could a developer possibly capture the feel of the console iterations on the little DS? Didn't make sense to me, so I figured we'd never see a DS version.

Continue reading Activision bringing 'Guitar Hero' to the DS -- I'm not so sure about this ...

Activision bringing 'Guitar Hero' to the DS -- I'm not so sure about this ... originally appeared on BloggingStocks on Mon, 24 Mar 2008 12:00:00 EST. Please see our terms for use of feeds.

As I've said before, I love reading the monthly videogame sales stats from marketing research outfit NPD. February was yet another nice month for the industry. Software continues to move off retail shelves at a robust clip; sales in this department were up 47% year-over-year last month.

Activision (NASDAQ: ATVI) and its incredible Call of Duty 4 title -- yes, I am an Activision shareholder and will probably promote any of its games to my friends and acquaintances, but if you think I'm wrong on this one, go check it out for yourself, it does rule something fierce -- continued its reign at number one, selling 296,000 discs. Activision also did well with Guitar Hero III for the Nintendo (OTC: NTDOY) Wii, selling 222,000 copies of the game. Rock Band, the music game from Electronic Arts (NASDAQ: ERTS), did well on Microsoft's (NASDAQ: MSFT) Xbox 360 -- over 160,000 rockers heeded the call to play some classic tunes.

As one might expect, the Wii sold the most consoles in February. Sony (NYSE: SNE) came in second with its PlayStation 3 unit, and the Xbox 360 was third. Microsoft says a shortage of systems hurt the company; I don't doubt that claim, the 360 did seem a bit hard to come by at some retail channels last month. But it'll be back in competitive mode in the coming months, I'm sure, making certain that Sony doesn't rest on its laurels. I expect sales for software to continue doing well, and just wait till the next holiday season -- I agree, it's too early to be talking about that, but it'll be here before you know it., and I expect it will be another banner selling period. And I can't wait to see what software title will be on top for the current month -- Super Smash Bros. Brawl for the Wii came out this past Sunday, keep in mind. If you told me you haven't heard of this title, I'd be surprised -- it really was the story of the week (or, should that be wiik; stupid pun, gotcha). A couple of GameStop (NYSE: GME) locations in my area held some tournaments, and from what I heard, they were quite lively.

Disclosure: Steven Mallas owns shares of Activision; positions can change at any time.

'Call of Duty 4' leads the videogame pack once again originally appeared on BloggingStocks on Fri, 14 Mar 2008 13:20:00 EST. Please see our terms for use of feeds.

Midway Games (NYSE: MWY), a competitor of videogame publishers such as Activision (NYSE: ATVI), Electronic Arts (NASDAQ: ERTS), THQ (NASDAQ: THQI), and Take-Two (NASDAQ: TTWO), reported earnings on Thursday for the fourth quarter. They weren't good. Net revenues went down by 20%, and the loss widened to 33 cents per share versus a loss of 2 cents per share in the year-ago period. For the full year, net revenues declined 5%, and the loss widened to $1.07 per share versus a loss of 86 cents per share in 2006. Even on an adjusted basis, the losses were larger than before.

I've been following Midway for a long time, and I have to say that I just don't think the publisher's stock is worth anyone's time right now. Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo (OTC: NTDOY) all have their new consoles out -- PlayStation 3, Xbox 360, and Wii, respectively -- so Midway, if it were executing properly, should have been able to take advantage of them. It hasn't.

I see nothing in the release that indicates a positive catalyst is on the horizon for Midway and/or its stock. It's a cool publisher with some fun games, but I won't be buying its thesis -- if there is one -- anytime soon. I'll stick with my Activision shares, and I'd urge others to look at an EA, or even a THQ, for possible value.

Disclosure: Steven Mallas own shares of Activision; positions can change at any time.

Midway's game is still off originally appeared on BloggingStocks on Fri, 07 Mar 2008 12:25:00 EST. Please see our terms for use of feeds.

Videogame sales data are in for the month of January. I love it when we get the monthly numbers on electronic gaming; it's always fun to see which of the big three -- Microsoft (NASDAQ: MSFT), Sony (NYSE: SNE), or Nintendo (OTC: NTDOY) -- are on top.

Well, as you can guess, the Nintendo Wii was number one yet again, selling 274,000 consoles last month, according to data released last week by marketing research firm NPD. The PlayStation 3 wasn't far behind with 269,000 units sold. The Xbox 360 was in the undesirable third position, moving only 230,000 of its next-generation system. Microsoft has stated that shortages of its popular product contributed to the disappointing showing. On an anecdotal basis, I know that the Xbox 360 with the hard drive, at least in my area, was indeed absent from many retail shelves as of late.

It was nice to see the PlayStation 3 have a good month. And you have to wonder how long the Wii will stay on top -- there seems to be no end to its momentum, but everyone really wants to see how it performs when there's finally enough supply of the fun devices in the marketplace (if you've never played the Wii, take my word for it -- it really is fun). Plus, what happens when all three of the new consoles move toward price parity? Will the power of the PS3 suddenly trump the innovative DNA of the Wii? Watching the evolution of the sales dynamic of all three systems will be almost as diverting as shooting up the mutant beasts in Resident Evil 4.

Continue reading The Wii does it again

The Wii does it again originally appeared on BloggingStocks on Sun, 17 Feb 2008 12:40:00 EST. Please see our terms for use of feeds.

Circuit City enters used video game market originally appeared on BloggingStocks on Fri, 08 Feb 2008 14:27:00 EST. Please see our terms for use of feeds.