Playboy (PLA) has already cut its staff and cut its office space ... but you know things are bad when Hef starts cutting back on the amount of skin his Bunnies are baring.

According to industry reports, Playboy is planning on a mix of new sites aimed at tackling a tamer market -- and none of them involve nudity. According to Playboy insiders, the company is developing a "free, safe-for-work site" its calling TheSmokingJacket.com, as well as additional subscription content with a slightly tamer feel.

Broadening your appeal beyond a core product is no easy task. But if done successfully, it can forever change the fortunes of a company. Just look at Nintendo (NTDOY) and its efforts to make video games mainstream and not a niche product for pimply-faced teenagers.

Continue reading What Playboy Can Learn from Nintendo

What Playboy Can Learn from Nintendo originally appeared on BloggingStocks on Fri, 07 May 2010 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Don't Expect Much Upside for Video Game Stocks

Don't Expect Much Upside for Video Game Stocks originally appeared on BloggingStocks on Fri, 16 Apr 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Netflix Streaming Video Comes to the Wii

Netflix Streaming Video Comes to the Wii originally appeared on BloggingStocks on Wed, 13 Jan 2010 14:30:00 EST. Please see our terms for use of feeds.

The holidays have ended, and the real sales have begun. Those choosing to sacrifice sentimentality for savings found retailers only too willing to help, as prices were slashed in the wake of the Christmas rush. Recipients of gift cards stand to see their purchasing power extended, as well, now that redemption time has arrived, and retailers are looking to squeeze in any extra sales they can to pump up their top lines before the books close on the fiscal year, which, for many, comes at the end of January.

Toys "R" Us has offered a deal on Nintendo (NTDOY) Wii games, with the second coming at half price, and Target (TGT) is nearly halving the price of wine glasses and dropping the tag on an argyle women's sweater by nearly a third. Walmart (WMT), which kicked off its cuts at the end of September, is throwing a $50 gift card on top of any Microsoft (MSFT) Xbox 360 buy.

Continue reading After Christmas, Retailers Pick Up the Pieces

After Christmas, Retailers Pick Up the Pieces originally appeared on BloggingStocks on Mon, 28 Dec 2009 11:30:00 EST. Please see our terms for use of feeds.

If the Wii were still cool, Nintendo (OTC: NTDOY) wouldn't have had to take a heavy hand to its full-year earnings forecast. The company's profit fell 52% year-over-year for the past quarter, due in large part to a decline in the game's popularity. Demand has slipped, with Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) gaining ground with the core market of zealous gamers. Also, it's seen its position eroded by Apple's (NASDAQ: AAPL) iPhone, which is picking up some momentum as a gaming platform.

Nintendo's Q3 operating profit dropped to JPY64 billion ($709 million), falling far short of the analyst estimate of JPY90 billion. For the year ending March 2010, the company has chopped its forecast to JPY370 billion, far lower than the analyst expectation of JPY442.8 billion.

After dominating the gaming industry for the past three years, Nintendo's Wii gave up its position in the top spot to Sony's PlayStation 3 last month. The company has also been hurt by an increase in the value of the yen, which has hurt all Japanese exporters. Yet, even by local standards, Nintendo isn't measuring up. Its stock price is down 28% this year, compared to a 14% increase in the Nikkei 225.

Wii dethroned, Nintendo profit halved originally appeared on BloggingStocks on Thu, 29 Oct 2009 14:50:00 EST. Please see our terms for use of feeds.

Continue reading Video game sales plunge in June

Video game sales plunge in June originally appeared on BloggingStocks on Fri, 17 Jul 2009 11:11:00 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.

Electronic Arts (NASDAQ: ERTS) issued Q4 and full-year numbers on Tuesday. The competitor of Activision (NASDAQ: ATVI), THQ (NASDAQ: THQI) and Take-Two Interactive (NASDAQ: TTWO) reported adjusted fourth-quarter revenues of $919 million, which was good for a 50% increase. Earnings per diluted share were $0.09 on an adjusted basis, also representing a 50% jump. For the full year, adjusted revenues jumped 30% to $4 billion and earnings per diluted share rose 36% to $1.06. Not too bad.

EA, according to Briefing.com, also beat Wall Street's expectations by quite a bit. EA was forecast to only break-even on a non-GAAP basis, so the difference was a nice $0.09. In terms of operational cash flow, EA increased the metric by 33% during the fourth quarter, but for the full year, operational cash flow decreased 15%. Ah, such is life, I guess. Nevertheless, EA produced 27 titles that sold over a million units this year -- three more than in the previous year. Fifteen of its titles sold over 2 million units -- five more than the last fiscal period. Titles such as Army of Two and Rock Band, as well as various sports franchises, drove the results.

Things sound pretty good, don't they? EA is definitely a major force on the Sony (NYSE: SNE) PlayStation, Microsoft (NASDAQ: MSFT) Xbox 360 and Nintendo (OTC: NTDOY) Wii platforms. But EA has had some challenges during this console cycle, and there is the perception that it needs a major merger to combat the threat posed by the Activision and Vivendi Games transaction. And let's not forget that Activision is on fire all on its own. That's what the whole attempted takeover of Take-Two is all about.

Continue reading Electronic Arts beats expectations, but is it the best publisher out there?

Electronic Arts beats expectations, but is it the best publisher out there? originally appeared on BloggingStocks on Wed, 14 May 2008 09:10:00 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.