Check out what these two columnists think about Electronic Arts stock.

Electronic Arts (NASDAQ: ERTS), more commonly known as EA, is the world's largest developer/publisher/distributor of video games in all formats, from PC to console to handheld. Despite a tough fourth quarter for the industry, EA is gaining in market share... but is it enough to gain your investment?

1. The average price of a game rose 7 percent to $32.65 when retailers charged a premium for Microsoft's Xbox 360 and Sony's Playstation Portable titles--the release of Sony's PS3 this spring adds to the effect.
2. EA gained market share in the last quarter of 2005. Sales of its games accounted for 21.1 percent of the overall market in December, compared with 20.6 percent in November and 20.2 percent a year earlier.
3. As production of the Xbox 360 increases, and with the release of the PS3, game sales will likely increase proportionately.
4. U.S. retail sales of video game hardware, software, and accessories hit a record $10.5 billion in 2005.
5. EA recently announced a publishing partnership with Amp'd Mobile, a company offering next-gen broadband wireless services for youth and young adults.

1. Overall unit sales of game software in the U.S. fell a jarring 10 percent in December 2005.
2. While the industry benefited from healthy prices for Xbox 360 and Playstation Portable games, total game sales in dollars still fell 3.6 percent.
3. Due to the overall sales decline, EA's market share gain translated into little increase in terms of dollar sales; retail dollars spent on EA games in December 2005 were up just 0.3 percent from December 2004 to $343.7 million.
4. Despite the higher Xbox 360 game prices, the limited production of Xbox 360 consoles put tight constraints on the number of games that could actually be sold.
5. EA has been the subject of several workplace ethics lawsuits--some settled against EA and some still pending. The company is accused of requiring employees to work without paid overtime.

The company that allows gamers worldwide to challenge everything, EA is the 800 pound gorilla of the video game industry. The company has a few challenges of its own to conquer with the online gaming trend and an increasingly competitive console market. But it's not game over yet... will you be playing?
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1. EA is the number one video game publisher in the U.S., with over a hundred popular titles such as: NFL Head Coach, Madden NFL 06, The Sims, Need for Speed: Most Wanted, and Medal of Honor.
2. EA Sports has exclusive deals with the NFL, NASCAR, FIFA and the PGA Tour. This means that no one else in the video game industry can make games featuring players or athletes from these professional organizations.
3. In December, EA agreed to buy Jamdat (NASDAQ: JMDT), a company quickly becoming one of the largest players in mobile phone games and ring tones, for approximately $680 million.
4. The demographics of the video game market have transcended in the past decade as more adults now take their leisure shooting aliens.
5. As of November 2005, EA had approximately $2.5 billion in cash and no debt, making it very possible to oust their competition.

1. The 2005 holiday season was a dismal one for the video game sector; the company had to cut earning projections.
2. The stock has tripled in the last five years and is currently a P/E (Price/Earnings) multiple of 38, which is pricey.
3. EA has been in a transition period. People are buying fewer video games in anticipation of the new games for the next era of consoles, Playstation 3 and Nintendo Revolution. Both systems are set to be released soon.
4. High energy prices mean consumers are less likely to pay top dollar for EA's flagship products. This may hurt margins moving forward.
5. The proliferation of PC games played over the Internet could jeopardize software sales, as more and more gamers bypass the consoles and go straight online.

Sources: ea.com; thestreet.com; biz.yahoo.com; finance.yahoo.com; hoovers.com; gamespot.com; espn.com; ps3land.com; theesa.com