Electronic Arts Inc. led a decline in video game stocks Friday after April's retail sales numbers, though a big jump from a year ago, disappointed investors.
EA, meanwhile, was quiet as midnight's deadline for its $2 billion tender offer to buy "Grand Theft Auto" maker Take-Two Interactive Software Inc. loomed.
Late Thursday, market researcher NPD Group said total U.S. video game sales grew 47 percent to $1.23 billion. Of this, software sales jumped 68 percent to $654.7 million, below what many analysts were expecting. Wedbush Morgan's Michael Pachter, for one, had expected game sales to more than double to $830 million.
Pachter said in a note to clients most game publishers fell well short of his expectations during the month. He noted that overall sales were strong, though lighter than he expected.
"Overall software sales should remain strong throughout 2008, and we expect increased hardware availability and a better slate of new releases over the near term to alleviate concerns about slowing industry sales or a weakening economy," Pachter wrote.
Redwood City, Calif.-based EA's shares fell $2.27, or 4.4 percent, to $49.25 in afternoon trading. The stock is down about 15 percent since the start of the year.
Shares of Grapevine, Texas-based GameStop Corp., the world's largest video game retailer, fell $1.79, or 3.2 percent, to $53.66. The stock has traded between $34.24 and $63.77 in the past year.
New York-based Take-Two's shares fell 61 cents, or 2.2 percent, to $26.72. EA's tender offer price is $25.74 per share.
Shares of Santa Monica, Calif.-based Activision Inc. fell 74 cents, or 2.2 percent, to $32.75, and earlier dropped to an annual low of $33.67,
Agoura Hills, Calif.-based THQ Inc.'s shares bucked the trend, gaining 5 cents to $18.75.
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