Electronic Arts Inc. (EA) has devised a unique plan to promote its two upcoming games, Kingdoms of Amalur: Reckoning and Mass Effect 3. In the cross-promotional activity, gamers will have the privilege of unlocking the Reckoner Knight Armor and The Chakram Launcher for the Mass Effect 3 game, while playing the demo version of Kingdom of Amalur.
EA is scheduled to release the Kingdom of Amalur‘s demo version on January 17, 2012 and the full version will be available from February 7, 2012 in North America and from February 10, 2012 in Europe.
Meanwhile, while playing the demo version of Mass Effect 3, players can unlock the N7 Armor and Onmiblade Daggers for Kingdomof Amalur. The full version of Mass Effect 3 will be released on March 6, 2012.
Kingdom of Amalur is a role playing game with intense action sequences. The game can be played on Microsoft Corp‘s (MSFT) Xbox 360 video game system, Sony Corp‘s (SNE) PlayStation3 and PCs.
The much-anticipated Mass Effect series has already sold over 7 million copies worldwide. EA’s strategic marketing strategy to cross sell the games would be beneficial for both the titles. With Kingdom of Amalur also being a part of the highly-anticipated games list, gamers could be enticed to have a go at both games.
EA has a strong pipe line for 2012 and has plans to launch another multiplayer online game after the recent success of Star Wars: The Old Republic. EA’s significant exposure to digital gaming and the social and mobile games segment will drive top-line growth in the upcoming quarters.
We believe that the company’s high-quality titles, impressive product line, increasing online exposure, social games and portfolio diversification 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.
We therefore have a Neutral recommendation on Electronic Arts over the long term (for the next 3 to 6 months). For the short term (1-3 months), we also have a Hold rating on the stock, as indicated by the Zacks #3 Rank.
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