Electronic Arts Inc. (ERTS) announced the launch of SHIFT 2 UNLEASHED, the latest version of Need for Speed, in North America.
Need for Speed has been a revolution in the racing games segment with its cutting edge graphics, superior game controls and on the edge driving experience. Its subsequent versions have been equally impressive in terms of delivering a complete gaming experience.
SHIFT 2 UNLEASHED comes with renewed game engine and superior graphics, coupled with innovative camera angles, night racing modes and more realistic graphical presentation of car damages resulting from crashes in the course of the race in order to enhance the energy, aggression and thrill of a genuine racing experience.
The game exclusively features the newly-introduced Pagani Huayra supercar and like Need for Speed Hot Pursuit, SHIFT 2 UNLEASHED also features Autolog technology, which enables one to race against rival players and load the match data simultaneously to add to the intensity of playing a rivalry generation racing game.
SHIFT 2 UNLEASHED is being acclaimed as the next big step in the racing games category as both PlayStation: The Official Magazine and Official Xbox Magazine have rated the game nine out of ten in their reviews.
Electronic Art’s timely launch of SHIFT 2 UNLEASED not only provides the much-needed boost in sales, it also serves to reassure ERTS investors about the depth in the Electronics Arts product pipeline.
Electronic Arts recently started the beta testing of its massively multi-player online game (MMOG) Star Wars: The Old Republic and the initial response was enthusiastic. The game is slated to release in 2011, although a specific date was not mentioned.
With its launch, Electronic Arts expects to surpass the unprecedented success of Activision’s (ATVI) massively popular MMO game World of Warcraft. Presently, there are approximately 12.0 million MMO players and half of the clan is hooked on to World of Warcraft.
Electronic Arts remains focused on delivering quality titles, which we believe will drive significant top-line growth going forward. The company’s impressive product pipeline is expected to drive market share gains over the long term.
However, Electronic Arts continues to face a nation-wide class-action lawsuit based on allegations that video game consumers were forced to overpay for popular sports titles including Madden NFL. Any negative ruling in this lawsuit will hurt the company’s pricing strategy over the long term.
Moreover, weakness in the overall packaged-games sector, compounded by intense competition from Activision Blizzard and Take-Two Interactive Software Inc. (TTWO) will impact profitability over the long term. Thus, we remain Neutral on Electronic Arts on a long-term basis (6-12 months).
Currently, Electronic Arts has a Zacks #3 Rank, which implies a short-term Hold rating.
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