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NVIDIA, Warner Bros. Team Up

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NVIDIA Corp. (NVDA - Free Report) recently joined forces with Warner Bros. Interactive Entertainment and WB Games Montreal to launch Batman: Arkham Origins under the Batman: Arkham videogame franchise.

The collaboration will help NVIDIA developers to include new gaming technologies such as DirectX tessellation, NVIDIA TXAA antialiasing, soft shadows and NVIDIA PhysX engine environmental effects which allow the company to add minute details, thus creating a realistic image of Gotham City.
Moreover, gamers buying certain GPUs (GeForce GTX 660, 660 Ti, 670, 680, 760, 770 or 780) from the partners will be given a free PC edition of Batman to be released on Oct 25. This will increase NVIDIA’s customer base and help in garnering additional revenue.

Warner Bros. Interactive Entertainment is a global interactive entertainment provider. It provides games for all platforms including console, handheld and PC-based for both internal and third-party game titles. WB Games Montreal works with Warner Bros. Studios (including DC Entertainment) which is focused on the most innovative approach to games as well as current and upcoming video game consoles.

NVIDIA reported revenues of $977.2 million in the second quarter of 2013, down 6.4% year over year, but up 2.4% sequentially. The revenue was slightly better than management’s outlook. However, revenues lagged the Zacks Consensus Estimate of $980.0 million.

Apart from this, NVIDIA ramped up the production of its next generation processor Tegra 4 during the quarter. The company also started shipping its new branded gaming and entertainment device “SHIELD.”
NVIDIA Corporation offers digital media processors and related software for a wide range of visual computing platforms. It is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU.

NVIDIA’s innovative product pipeline that consists of the recently introduced SHIELD and the upcoming Mobile processor Logan Tegra 4 processors will boost top-line growth, going forward.

However, the company is facing stiff competition from the likes of Advanced Micro Devices, Inc. (AMD - Free Report) , Intel Corp. (INTC - Free Report) and QUALCOMM Inc. (QCOM - Free Report) .  Also, higher operating expenses are expected to hurt profitability in the near term.

Currently, NVIDIA has a Zacks Rank #3 (Hold).

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