EA Goes Hollywood

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Electronic Arts (Nasdaq: ERTS) wants to be a movie star. The video game giant is signing a deal with United Talent Agency, a Hollywood talent and literary agent, to transform its hottest gaming franchises into multiplex features and primetime television shows.

No, you'll never see Madden 2009: The Musical or a sitcom themed to The Sims, but some of EA's more action-oriented titles like Army of Two, Need for Speed, and the upcoming Dead Space are naturals to go for celluloid makeovers. I can't be the only one feeling that the buzz-snatching Spore is a natural as an animated series.

Why not? EA has recognized brands with established fan bases. If Marvel (NYSE: MVL) and DC Comics can spin their characters into gold, why can't video game properties be the next wave of Hollywood fodder?

Video game properties on the big screen have been a mixed bag, but some franchises like Tomb Raider and Resident Evil have been popular enough to generate cinematic sequels.

Back in May, Pirates of the Caribbean director Gore Verbinski signed on to give Take-Two Interactive's (Nasdaq: TTWO) BioShock a theatrical turn. It's really just a matter of time before some of the company's other record-breaking titles light up the local multiplex.

Film and television licensing revenue would be hearty gravy to an industry that is already sporting high margins to begin with. Software development is a hit-driven business, and there's no reason why video game companies should be limited to physical game sales and digitally delivered add-ons. If Activision Blizzard (Nasdaq: ATVID) doesn't transform Guitar Hero into an axe-strumming game show or reality series by next year, I have sorely overestimated the depths of cable programming these days.

So have fun in Hollywood, EA. The more I think about it, the more I find myself warming up to that Sims sitcom after all.

Other headlines that ought to be in pictures:

• Your Money's No Good Here, EA
• EA's Evolving Business Model
• Here's Your Shot to Score Big