The video game sector did not see much movement over the last couple of weeks due to the absence of new game releases by big publishers. The focus now shifts to the upcoming earnings season as majority of the companies are scheduled to report over the next couple of weeks.
Investors will be keen to assess the effect of higher new console sales on Electronic Arts (EA) and Activision Blizzard’s (ATVI) top line. However, higher spending on new consoles is expected to negatively impact software sales. Further, revenue growth is expected to remain muted in the second quarter due to lack of major game releases.
Video Game Market – Other Stories Now
Microsoft’s (MSFT) strategy of introducing a lower-priced Xbox One seems to have helped the sales of the console. The company recently announced that the unit sales of Xbox One doubled in June compared to May. Microsoft sold approximately 115K in April.
Take-Two's WWE 2K15 to Feature Sting as a Playable Character
Glu Mobile (GLUU) recently announced that new title releases Dino Hunter: Deadly Shores and Kim Kardashian: Hollywood helped the company achieve new single-day records for overall revenues, downloads and daily active users (DAU).
Operator of Italy’s state lottery, Gtech SpA, recently announced that it will acquire International Game Technology for $4.7 billion in cash & stock. Gtech will pay $18.25 for each IGT share, or $13.69 in cash plus 0.1819 shares in a newly formed holding company. Earlier, IGT announced that it has hired Morgan Stanley to explore a possible sale. Read: IGT Looks to go Private, Hires Morgan Stanley
Zynga Appoints Google Ex as Director, Regains Compliance
Activision Blizzard and NetEase Inc (NTES) recently signed an agreement that will help in launching Diablo III in Mainland China.
Battleborn: A New Franchise from Take-Two Interactive
Game News
- Glu Mobile launched Hercules: The Official Game on the App Store and Google Play
- Activision’s much anticipated title Destiny’s Beta will be available for gamers who pre-order the game from Jul 17 on PlayStation 4 and Jul 23 on Xbox One
- King Digital Entertainment launched its popular Facebook (FB) title Pyramid Solitaire Saga on mobile.
Performance
Over the last 5 days, Glu Mobile was the leading stock as it added about 24.90%. The company has been the biggest gainer in the last 6 months, with EA a distant second.
Glu Mobile’s recent new game releases have been the primary growth factor for the stock. However, Zynga (ZNGA) continued to lose during the period, primarily on intensifying competition, from the likes of King Digital, delisting threats and less-than-impressive product pipeline.
|
Stock Price Chart (as of 7.17.2014) |
||
|
Last 5 days |
Last 6 months |
|
|
ATVI |
2.91% |
35.73% |
|
EA |
5.51% |
54.02% |
|
MSFT |
6.50% |
21.17% |
|
NTES |
7.67% |
2.81% |
|
GLUU |
24.90% |
60.99% |
|
TTWO |
2.00% |
31.85% |
|
ZNGA |
1.17% |
-14.93% |
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment