Electronic Arts (ERTS) (THQI) (ATVI) (NTDOY.PK) Expected to Lead March Game Sales

Wedbush Morgan analyst Michael Pachter gave his preview of gaming sales leaders in March, expecting offerings from Electronic Arts (NASDAQ:ERTS), THQ (NASDAQ:THQI), Activision (NASDAQ:ATVI) and Nintendo (OTC:NTDOY.PK) to lead the way.

Pachter noted: We expect March sales to be led by new releases Electronic Arts’ Crysis 2 (360, PS3, PC) and Dragon Age II (360, PS3, PC), Nintendo’s Pokémon Black and White (DS), and THQ’s Homefront (360, PS3, PC), with continued strong sales of Activision Blizzard’s Call of Duty: Black Ops and Ubisoft’s Just Dance 2.

Other outlooks for March from Pachter:


* We expect March U.S. retail video game console software sales data to be released by the NPD Group after the market close on Thursday, April 14.

* We forecast software sales of $805 million, down 8% compared to last year’s $876 million, the fourth consecutive month of negative growth.

* Despite a strong release slate featuring two new Pokémon games and a pair of high-profile first-person shooters, we believe growth is unlikely due to a difficult comp of +10%, the Nintendo 3DS’ late-March release date (March 27) and relatively modest marketing campaign, and an unfavorable comparison to the Easter calendar shift.

* We expect hardware sales of 410,000 Wii units (down 26% year-over-year), 480,000 Xbox 360 units (up 42% y-o-y), 380,000 PS3 units (up 21% y-o-y), and 500,000 3DS units in its debut month due to strong pre-orders.

* Despite the long-awaited introduction of the Nintendo 3DS, we believe the industry outlook remains unclear.

Electronic Arts was trading at $19.64, down $0.21, or 1.06 percent, as of 1:37 PM EDT. THQ was at $4.42, falling $0.12, or 2.64 percent. Activision was trading at $11.01, dropping $0.12, or 1.12 percent.

BP (BP) the Gaming Giant?

Is BP (NYSE:BP) the oil giant about to become BP the gaming giant? Maybe they will in the UK, as they are about to start selling the Nintendo 3DS there, according to a report from Marketing Magazine.

Consoles will start off at £229.99 at the BP service stations, which will also sale games as well.

The price for the device at BP outlets isn't exactly at the lower end of prices, but if it's convenient and quick, they may do a robust business in some of the demographics.

BP closed Monday at $46.04, falling $0.83, or 1.77 percent.

Gamers Like (ATVI)(CCOEF)(UBSFF)(MSFT)(SNE) Could Get Boost on Stonger-Than-Expected Sales

Software sales from gaming companies came in higher than expected last month, as hardware sale soared beyond projections, with companies like Activision-Blizzard (NASDAQ:ATVI), Unisoft (UBSFF), Capcom (CCOEF), Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT) expected to benefit.

Gaming sales in February fell by 5 percent from last year, but analysts had been looking for a drop of 6 to 10 percent.

Activision-Blizzard's "Call of Duty: Black Ops" was again the top selling game for the fourth consecutive month. Capcom (CCOEF) battled its way into the number two with its new release "Marvel vs. Capcom 3," while Ubisoft's (UBSFF) "Just Dance 2" dropped to third place.

With hardware sales soaring, analysts say it could result in the gaming side getting more robust.

Another unknown is the impact the release of Nintendo's (NTDOY) 3DS system will have on the software side of the business. It has been a huge hit in Japan, and will be released in the latter part of March.

For the overall sector, sales rose by 4 percent over February 2010.

Majesco (COOL) Quietly Doubles in a Month

Majesco Entertainment (NASDAQ:COOL) a maker or reproducer of casual games, has almost doubled since February 11, when it traded for $1.26 a share.

If you go back to January 1, when they were trading a 77 cents a share, the company has over tripled in price.

While the company has been steadily moving up over the last several months, the main catalysts was their recent report where revenue for the quarter increased to $48.5 million, a 66 percent gain.

The company, at this time, is being driven by the release of its popular Zumba Fitness software, which can be played on Nintendo Wii, Xbox 360 (NASDAQ:MSFT), and Sony’s PS3 (NYSE:SNE) consoles.

Majesco closed Thursday at $2.48, gaining $0.23, or 10.22 percent. They were up to $2.50 in after hours trading.

Netflix (NFLX) Coming to a Nintendo Near You

The release of Nintendo's 3DS handheld video game system isn't that far away, and Netflix (NASDAQ:NFLX) and AT&T (NYSE:T) will be a part of the device.

Users will be able to stream videos from Netflix on the system, while AT&T will offer wireless hot spot access, numbering at about 10,000.

Nintendo has already released the new product in Japan, where over 400,000 have already been sold. It is expected to be released in the U.S. on March 27, being offered at $250.

The company said in order to generate stronger demand, they'll have over 30 games which will be released in the first three months it is available in America.

Even with the Netflix and AT&T features, Nintendo of America President Reggie Fils-Aime said, "The primary function of the 3DS is to play games."

Similar to its Wii console, Nintendo said its hoping the new device will draw non-gamers as well, expanding its market.

Apple (AAPL), Nintendo (OTC:NTDOY) Products Appeal to Seniors

Products from tech companies like Apple (NASDAQ:AAPL) and Nintendo (OTC:NTDOY) are increasingly becoming a part of the lives of seniors, and it appears they like to have fun while exercise the brain or getting fit.

With the first baby boomers turning 65 this year, companies in the youth-centric consumer electronics business are turning more attention to older customers.

This gray-tech trend covers everything from video games for exercising older minds and bodies, such as Nintendo's (NTDOY) BrainAge and Wii Fit, to Skype video conferencing for seniors to interact with their kids and grandkids.

In some cases, general-interest tech products will be marketed differently to senior citizens. In other cases, new products will be developed specifically with older people in mind .

Gray tech has moved beyond those telephones with ridiculously large buttons for seniors with poor eyesight. Today's seniors want many of the same cool tech products prized by younger consumers.

There's more focus on gray tech because it's a growing market with big spending power, analysts say.




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