Both Electronic Arts (NASDAQ: EA) and Activision Blizzard (NASDAQ: ATVI) are benefiting from the growth in full-game downloading, sales of in-game content, and mobile gaming. These sources of revenue are allowing video game publishers to keep inventory and in-store marketing costs down, and this allows more revenue to flow to the bottom line.
The outcome is that both businesses have shown dramatic improvements in profitability in recent years. But which is the better buy today?