I just got came back from standing in line at midnight at a GameStop in Clifton, NJ to pick up a pre-ordered copy of Madden 2006 from Electronic Arts [ERTS]. There were about 200 thug looking teens and twenty-somethings waiting in line with excitement. Most walked away with the Xbox version and I was the only one getting it for my son's Nintendo [NTDOY]GameCube. He will be exstatic tomorrow.
Now assuming that my local GameStop [GME] is pretty typical, and considering that there are 4,000 of these stores including EBGames outlets (soon part of GameStop), and considering that this game costs over $50, I think ERTS could bring in $40 million or so from Madden in the first 24 hours. And I think the dollar volume could be double that, easily. Now this may not be as big as Halo 2, but salees will still be very strong. So I think their shares could move tomorrow, based on the news. I bought a small number of ERTS shares a while ago because I reasoned that they are the top video gaming franchise in the business, and in my opinion could represent a juicy merger partner for another media/entertainment company one day. So will the the stock move tomorrow on strong sales of this title? Or will a malaise continue to afflict ERTS shares?
Tuesday, August 09, 2005
Thursday, August 04, 2005
Give Back Time for Gaming Companies
There has been a lot of flap over the violence and now sexual references inTakeTwo Interacive's [nasdaq:TTWO]video games. Grand Theft Auto-San Andreas, the companies flagship game from Rockstar, is being singled out by activists and legislators as an example of what is bad about video gaming and pop culture. Now I read that another promising game from TTWO, Bully, is under attack because of its potential for violence among school age children.
I have never really played GTA, but I have read a lot about it and talked to many people who love it. These aren't street thugs who play this game. These are everyday normal people as well as some of the most educated and esteemed people in the nation. Dont forget they have sold more than 30 million copies of the various versions of GTA.
I own TTWO's stock not just because they have a blockbuster game, but because I realized that they are at the forefront of video gaming when it comes to creating new franchises that video gamers love. Compared to the crude slash and slaughter copycats that have jumped on the GTA bandwagon, their creative teams and games are standouts in terms of innovation and the ability to keep gamers engaged. Put simply their games are smarter. Unlike others that have to strike expensive license deals, TTWO's Rockstar doesnt rely on preexisting blockbuster movie franchises or books. They create their own blockbusters from scratch, kind of the way Viacom did with Sponge Bob, Rugrats and MTV.
Steven Johnson author of "Everything Bad is Good For You"talks about the merits of games like GTA, that challenge players minds to solve problems and create winning strategies. He makes the argument that video gaming and other forms of pop culture like television actually make us smarter because we excersize the parts of our brain used in problem solving, organizing and strategizing. It occured to me while reading his book that his theories could have powerful implications if some of these video companies could actually come up with games that can be used in our educational system to help children learn. We all see the power of these video games. My nine year old could spend 6 hours in a day (if we let him) playing a video game like Madden, creating teams, improving his offensive strategy...etc. However when it comes to math homework, which he excels in, he rushes through it in 20 minutes.
Unfortunately good innovative companies like Take Two are under attack. I think they would do themselves a world of good if they were to devote some of their resources to creating a few smart, addictive games that have an edge, yes, but also help young people learn important things. Not just how to hijack a car or, in the case of the upcoming Bully, use a sling shot. Of course they need to do more than just create the games. They need to prove to the educational establishment that they are worthwhile.
I have never really played GTA, but I have read a lot about it and talked to many people who love it. These aren't street thugs who play this game. These are everyday normal people as well as some of the most educated and esteemed people in the nation. Dont forget they have sold more than 30 million copies of the various versions of GTA.
I own TTWO's stock not just because they have a blockbuster game, but because I realized that they are at the forefront of video gaming when it comes to creating new franchises that video gamers love. Compared to the crude slash and slaughter copycats that have jumped on the GTA bandwagon, their creative teams and games are standouts in terms of innovation and the ability to keep gamers engaged. Put simply their games are smarter. Unlike others that have to strike expensive license deals, TTWO's Rockstar doesnt rely on preexisting blockbuster movie franchises or books. They create their own blockbusters from scratch, kind of the way Viacom did with Sponge Bob, Rugrats and MTV.
Steven Johnson author of "Everything Bad is Good For You"talks about the merits of games like GTA, that challenge players minds to solve problems and create winning strategies. He makes the argument that video gaming and other forms of pop culture like television actually make us smarter because we excersize the parts of our brain used in problem solving, organizing and strategizing. It occured to me while reading his book that his theories could have powerful implications if some of these video companies could actually come up with games that can be used in our educational system to help children learn. We all see the power of these video games. My nine year old could spend 6 hours in a day (if we let him) playing a video game like Madden, creating teams, improving his offensive strategy...etc. However when it comes to math homework, which he excels in, he rushes through it in 20 minutes.
Unfortunately good innovative companies like Take Two are under attack. I think they would do themselves a world of good if they were to devote some of their resources to creating a few smart, addictive games that have an edge, yes, but also help young people learn important things. Not just how to hijack a car or, in the case of the upcoming Bully, use a sling shot. Of course they need to do more than just create the games. They need to prove to the educational establishment that they are worthwhile.
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