"Do you spend time with your family? Good. Because a man who doesn't spend time with his family can never be a real man." -- Don Vito Corleone
Electronic Arts (NASDAQ:ERTS) is heeding one of the many memorable lines from The Godfather: The video game software developer has been spending considerable time to bring an engaging, interactive experience to the families it serves. But can its new title, based on the classic movie, resurrect its shares, which have been sleeping with the fishes for the past two years?
After lots of delays, the game is finally hitting store shelves at an ideal time, given that the popular HBO series The Sopranos is in the thick of its sixth season. And the delays may have been worth it -- if the initial reviews are any indication, the game should be a good seller for the company. CNET's (NASDAQ:CNET) GameSpot, an online publication for video game reviews, called the game "a great addendum to the film and a fun and lengthy game in its own right." The title will be available for play on Sony's (NYSE:SNE) PlayStation 2 and PSP, Microsoft's (NASDAQ:MSFT) Xbox and Xbox 360, and PCs, too.
With Electronic Arts capitalizing on one of the greatest films of all time, and feeding off the enthusiasm of one of television's most successful series, the Godfather game is sure to be a hit. However, it will take a whole lot more for the company to see software sales growth from traditional platforms in 2006. In its last conference call, Electronic Arts management indicated that it anticipates robust growth this year from its burgeoning online business -- which now does in excess of $80 million a year in sales -- as well as from handhelds, such as the Sony PSP, and mobile-phone gaming. But its bread-and-butter sales -- consisting of traditional game consoles -- are expected to head south. Management described 2006 as a "tough" year while the industry transitions to Microsoft's Xbox 360 and prepares for new platform launches in Sony's PS3 and Nintendo's Revolution.
But as the new cycle of next-generation gaming software floods store shelves in 2007, Electronic Arts should be able to cash in and increase its dominance in the video game software market. So set down the cannolis and pick up your pen and pad to do some additional research on the company's stock. At these prices, it just may be an offer we can't refuse.
Electronic Arts is a Motley Fool Stock Advisor pick. CNET is a Rule Breakers recommendation, and Microsoft is an Inside Value selection. Find a Fool newsletter that suits your investing style, and take it out for a free, 30-day test drive.
Fool contributor Jeremy MacNealy does not have any financial interest in any companies mentioned.
