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Competition For Madden? Take-Two, NFL Reach Deal On 'Non-Simulation' Football Game

Take-Two Interactive Software (NASDAQ: TTWO) was gaining yardage Tuesday after news it has a new deal with the National Football League to create "non-simulation" football video games.

Benzinga · 03/10/2020 18:31

Take-Two Interactive Software (NASDAQ: TTWO) was gaining yardage Tuesday after news it has a new deal with the National Football League to create "non-simulation" football video games.

With a partnership for "non-simulation" games, the league is able to avoid Take-Two creating games that could be seen as directly competing with the popular "Madden" NFL games from Electronic Arts Inc. (NASDAQ: EA), which remains the exclusive publisher of NFL "simulation games.

"The non-simulation description means that it is likely to be an arcadelike game (think NFL Blitz) vs EA's more realistic game, Madden," Stephens analyst Jeff Cohen said in a note.

Little Impact Expected

Cohen said Take-Two investors will be pleased at the announcement of a new game, but that the impact from the title will likely be small, in the range of 2 million to 3 million units. Cohen has an Equal-Weight rating and $110 target price on Take-Two.

Cohen said EA investors should pay attention, however, noting that anything close to football could be "encroaching further onto EA's sports golden goose," though he noted Take-Two's effort likely won't be competitive with Madden.
Cohen has a Buy rating and $120 price target on EA.

Price Action

Take-Two shares were gaining on the news Tuesday, up more than 2% at publication time to $116.32. EA shares were also up slightly, trading at $101.18.

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