An Industry Gamers review of games industry stock options has rated Electronic Arts and Nintendo as hot buys, while advising against Sony and THQ, with the latter considered risky due to the imminent release of Homefront.
Analysts Asif Khan and Adam kraus gave Nintendo their “strongest buy recommendation”, but advised that returns could take as long as one year to manifest. Highlighting the launch of the 3DS, the pair stoutly denied Pachter’s “blown it” comments and predict a recovery.
Another of their favourites is EA. The company’s mobile division’s success has encouraged confidence in the mega-publisher’s ability to adapt to new forms of distribution “unlike Activision Blizzard”. EA’s strong relationship with the PlayStation brand is cited as a potentially lucrative arrangement as Sony expand into Asia, as is a strong early year with Dead Space 2 and Bulletstorm.
Sony’s multi-disciplinary approach and investment in 3D tech came under fire, as the analysts feel the market for HD TV is declining. The electronics company were criticised for not taking “advantage of synergies throughout the conglomerate”; something Sony have touted as a goal with their all-embracing PlayStation Network ideals.
THQ doesn’t get much shrift, either. Despite the company’s claim that their world doesn’t revolve around Homefront, buyers are advised to avoid gambling on the new IP.
“We don’t predict that title to make any sales records with gamers still glued to Halo Reach and Modern Warfare 2,” the pair wrote. “They also have to fend off Killzone 3 and Bulletstorm (includes a Gears of War 3 beta) which both will be released a few weeks before it.”