For Electronic Arts (NASDAQ:ERTS), the game is on. The Motley Fool Stock Advisor pick announced its initial group of games for Microsoft's (NASDAQ:MSFT) new Xbox 360 console, set to debut late next month.
The familiar titles represent some of Electronic Arts' major brands: Need for Speed Most Wanted, FIFA 06: Road to FIFA World Cup, NBA LIVE 06, Tiger Woods PGA Tour 06, and Madden NFL 06. In addition, Xbox 360 owners can look forward to major future releases such as The Godfather, Battlefield 2: Modern Combat, and another entry in the Burnout Revenge series.
Clearly, Electronic Arts is betting that its reputation as the premiere purveyor of next-generation sports games will give it an early lead in the Xbox 360 software market. Not so fast, EA. Rivals like fellow Stock Advisor pick Activision (NASDAQ:ATVI) and THQ (NASDAQ:THQI) are also plotting strategies to snag that coveted user base over time.
Some gamers prefer to wait on purchasing fresh titles when a new console debuts, theorizing that the best is yet to come as developers learn the system's full capabilities. But many new owners like to buy a lot of titles right away to really get into their new purchase. Electronic Arts would risk losing sales if it didn't come to the launch party with its hands overflowing with gifts.
Nevertheless, Electronic Arts and the other major publishers must be salivating over supplying content for the Xbox 360 and the upcoming Sony (NYSE:SNE) PlayStation 3. Successful media companies have a library of franchises at their disposal to drive revenue and cash flow growth, and Electronic Arts is clearly a leader in the field.
When the Xbox 360 arrives, Electronic Arts' shareholders will be monitoring first-week sales closely, hoping for a high penetration rate with the base of new users. Even with the stiff competition from Activision and others for those users, EA will almost certainly remain firmly entrenched in the game.
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Fool contributor Steven Mallas owns none of the companies mentioned. The Fool has a disclosure policy.
