I'm showing my age by saying this, but I remember goofing around with many of the early Electronic Arts (Nasdaq: ERTS ) titles during high school. I used to make computerized pinball machines with Pinball Construction Set. I dealt with the rudimentary graphics as I dribbled away in some One on One hoops action. I even took part in a neighborhood league where we'd input baseball-card stats into the original Earl Weaver Baseball game.
Apparently, the times are getting even better. Next-generation consoles by Sony (NYSE: SNE ) , Microsoft (Nasdaq: MSFT ) , and Nintendo (OTC BB: NTDOY.PK) are raising the bar on what games can do, and the gamers are all over it. Market-research firm NPD reported a better than 22% rise in video software sales last month over August of 2006.
As the industry leader -- with a market cap greater than those of its nearest rivals, Activision (Nasdaq: ATVI ) , Konami (NYSE: KNM ) , and THQ (Nasdaq: THQI ) , combined -- EA is a popular company. But is it too popular? Not all Fools agree.
Tim Beyers is our bear this week. He thinks the company's valuation is too rich. I'm the bull. I argue that the only thing that's rich will be EA's investors.
Which Fool will deliver the winning argument? That's what this week's bout is all about.