EA Unveils Limited Medal of Honor - Analyst Blog

Video game manufacturer and publisher

(

) announced to launch the Medal of Honor limited version.

Medal of Honor limited version allows players to access MP7 pistol that can be operated as a rifle in the battle field. The limited version also provides access to TOZ-194 and 870MC2 shotguns. Players can pre-order Medal of Honor limited version without any additional cost.

Gamers will play Medal of Honor as Tier 1 operators, a relatively unknown battalion comprising fictional characters, guided by the National Command Authority.

The eleven year old Medal of Honor video game has driven success at Electronic Arts. The new version of the game is set amid the rugged and hostile battlefields of present day Afghanistan.

Scheduled to release on Oct 12, 2010, in North America and Oct 15, 2010, in Europe, Medal of Honor will be launched simultaneously in

(

) PlayStation 3,

(

) Xbox 360 and Personal Computers.

We believe Medal of Honor will significantly boost Electronic Arts’ top-line growth in the second half of 2010. However, the game will likely have to compete hard with

(

) Modern Warfare: Call of Duty.

Electronic Arts faces stiff competition from

(

) and privately held Sony Online Entertainment LLC.

Although the company reduced its titles by 20% in 2010, it achieved market share growth with fewer than 20 titles released in fiscal 2010. Electronic Arts remained the premier publisher with a market share of 19% in fiscal 2010 in Europe and North America.

Electronic Arts is poised for growth as it posted non-GAAP net revenues of $4.16 billion and had 27 titles that sold more than one million units in fiscal 2010.

We believe Electronic Arts has a strong pipeline of products that will ensure better growth potential in fiscal 2011 and beyond. Electronic Arts plans to release 36 titles in fiscal 2011. The new game pipeline includes Medal of Honor, Need for Speed, The Sims 3 for consoles, EA Sports Active 2, Dead Space 2 and Bulletstorm.

We have a Neutral recommendation on a long-term basis for Electronic Arts due to an increased focus on cost reduction, a strong balance sheet, improving cash flow and a growing presence in digital distribution. Electronic Arts has a Zacks Rank #3, which implies a Neutral rating on a short-term basis.