Currently Invested in Activision, But EA Merits Consideration

5/14 - "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."

"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."

"Personally, I'm playing Activision right now, having held it for a long time...I'm happy holding onto my Activision shares, but for those who are interested in getting in on a game-publisher, EA is probably worth some due diligence since its stock isn't at the top-end of the yearly range. EA has a great software portfolio full of franchises, and these earnings results indicate that it can still play one heck of a game."