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Although Overvalued, It's Far From Game Over for Electronic Arts

Activision Blizzard, Ubisoft, and Take-Two also have potential in plans to expand and reinvigorate franchises.

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We attended the Electronic Entertainment Expo, or E3, in Los Angeles and came away with increased confidence around the overall strength of the video game industry. Not only did all four video game publishers under coverage ( Activision Blizzard (ATVI),  Electronic Arts (EA),  Ubisoft (UBSFF), and  Take-Two (TTWO)) each have strong moments at the show, all three major console platforms from  Microsoft (MSFT), Nintendo, and Sony also left E3 with positive momentum.

However, some of our discussions at E3 reinforced our skepticism about the hype surrounding virtual reality, or VR, specifically on the revenue opportunity. We also left the show with more questions than answers around eSports and the eventual winners in this rapidly growing space.

Neil Macker does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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