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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (32574)	6/1/2001 2:31:17 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70494

Trader's Edge: XBox Plays 25-May-01 13:22 ET [BRIEFING.COM - Robert J. Reid] The interactive software group has been gaining momentum over the past few months. We expect the fall launch of XBox and Nintendo's GameCube, for that matter, to act as catalysts for the group. We highlight the main stocks, but also overturned rocks to find smaller names that should participate in rallies. What is XBox? Xbox is Microsoft's future-generation video game system with more than 3x the graphics performance of the newest generation of game systems. The Xbox is Microsoft's first entry into the home-video gaming market, a market long-dominated by Sony, Sega and Nintendo. Expected launch date is November 8, in time for the critical Christmas season. Retail price $299, same as Sony's PS2. Microsoft expects sales of 600K-800K units initially, but that should reach 1.5 mln units by holiday season. Microsoft will heavily promote the XBox with a $500 mln marketing budget, which is a huge amount. 80 exclusive Xbox titles are currently in development - half of which are from third parties. Risks Keep in mind that Sony was hampered by well-publicized production shortages when it launched PS2 last fall. However, Microsoft recently confirmed all the information you see above -- lessening the chance of a delay. Also, Nintendo is launching its eagerly awaited GameCube console which will be available November 5, upstaging XBox by three days. However, Nintendo's core customer base is among younger users. Companies That Will Benefit from XBox Many software companies are lining up behind Xbox. Leading game-maker Electronic Arts (ERTS 61 -2.05) has 10 games in development including Madden NFL 2002, NHL 2002, Simpsons Road Rage etc. Other established companies include Activision (ATVI 33.80 +0.10), Midway Games (MWY 9.09 +0.38) and THQ (THQI 47.30 -0.39). Briefing.com also continues to like Take-Two (TTWO 19.96 +0.57) for its relative safety over the smaller names listed below while still trading at an attractive valuation. Chipmaker Nvidia (NVDA 91.41 -2.06) is another to keep an eye on as it will supply the graphics processor for the console. Lesser Known Names These lesser known names are risky for investors, however, traders like when we dig under rocks for second and third tier names that should participate in rallies over the coming months. So here goes: Interplay Entertainment (IPLY 3.25 +0.75): IPLY is teaming up with Planet Moon Studios to develop a project based on the critically acclaimed Giants franchise for the Xbox. Planet Moon, who developed the award-winning Giants PC game, will develop the yet untitled project. Infogrames (IFGM 5.71 +0.11): This little known name will release TransWorld Skateboarding, TransWorld Snowboarding and TransWorld Surf for XBox this winter. Acclaim Entertainment (AKLM 3.41 +0.42): Two of the company's premier brands, Dave Mirra Freestyle BMX 2 and All-Star Baseball 2003, will be made available for the XBox. Dave Mirra Freestyle BMX 2, the best-selling BMX game for any gaming system, will be available in the first wave of titles for the system, while All-Star Baseball 2003 will launch in the spring of 2003 just as baseball season begins. The company has additional titles in development for the Xbox so expect positive press releases over the next year or so. Eidos plc (EIDSY 4.45 -0.20): The benefit for this British company will materialize later as Microsoft has postponed the Xbox launch in Europe, but keep an eye on it over the next few months.