Electronic Arts Inc. (EA), Activision Blizzard, Inc. (ATVI): New Consoles, New Games

I expect Take-Two to continue to perform well with its sports franchises with the next generation of consoles despite EA’s return to the NBA Live series. The company recently acquired the rights to WWE wrestling, adding another compelling title to its portfolio.

Game on

With the Xbox One and PS4 just around the corner, I like EA’s strategy the most. Its focus on consolidation and cost-cutting ought to drive profits, and Battlefield 4 should be able to further establish the franchise on the next generation of consoles. Additionally, the company has a massive opportunity with the Star Wars franchise.

Take-Two will have an opportunity to capitalize on what should be another huge blockbuster with GTA V. If the company extends the game onto the next-gen platforms, it will sell extremely well. It could even extend the franchise into other formats such as a massively multiplayer game.

I’m pessimistic toward Activision. The company has the most to lose, and is under attack from all angles. Additionally, its stock price has run up in the last six months based on potential buyout rumors, and less on fundamentals. The combination makes it unattractive as an investment.

Adam Levy has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard, Take-Two Interactive , and Walt Disney. The Motley Fool owns shares of Activision Blizzard and Walt Disney.

The article New Consoles, New Games originally appeared on Fool.com.

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