Video game stocks weren’t immune to the global market downtrend as a result of the Greece debt crisis and continued to slide over the past week.
Some important events from the past five days include rising viewership of Twitch.tv, thanks to the Electronic Entertainment Expo (E3) and the announcement of a game based on Demi Lovato – the latest celebrity to join the video game industry. Further, Nintendo’s most awaited console Nintendo NTDOY NX is rumored to hit markets by 2016 with production beginning this year.
Top Stories this Past Week
1. Though the Electronic Entertainment Expo (E3) 2015 has come to an end, related news keeps pouring in. A case in point is fresh reports about the increasing viewership of Twitch.tv. Accordingly, Amazon.com Inc.’s (AMZN) live streaming video platform – Twitch.tv registered 21 million viewers who tuned in for the E3 2015 shows. As E3 is targeted toward industry insiders like professionals, journalists and business owners, the live channel benefitted from broadcasting press conferences from Microsoft MSFT, Sony SNE and other players. However, this time around, Twitch enabled a commentary section on the E3 show, which allowed fans across the world to voice their opinion. According to reports, nearly 12 million hours of E3 footage was consumed over Twitch. Apart from Twitch, Google’s GOOGL YouTube was also one of the main broadcasters of the events.
2. Recently, Chinese online gaming company, Perfect World Co., Ltd. PWRD announced its Zhi-Xing China-Perfect World US-China Young Leaders Fellowship Program in Beijing. The program focuses on building a platform for research and exchange between China and the U.S. and aims to develop bilateral relations between the two countries. Under the new arrangement, the company will sponsor the new Zhi-Xing China Program in order to build a long-term relationship.
3. This week Demi Lovato was the latest to join the celebrity club in the video game industry. Reportedly, the singer, songwriter and actress has collaborated with mobile game maker Pocket Gems to create a video game that involves the storyline of becoming a famous musician. In the game, players will follow Lovato on tour and backstage and build their own music careers. While the game title has not been decided yet, it is expected to debut this summer on Apple AAPL iOS and Google’s Android devices.
4. Activision Blizzard, Inc. ATVI has reportedly added new characters, the Butcher and other heroes, as part of its Eternal Conflict online event that took place on Jun 30. Reportedly, the company is also planning to bring these characters into its multiplayer online battle – Heroes of the Storm. In addition, Activision Blizzard also announced a new map for Heroes of the Storm called Battle of Eternity at the Eternal Conflict event. The map would involve the characters of two bosses and whichever team defeats one of the bosses will get them on their side as an ally.
5. Reportedly, Nintendo is set to begin production of its upcoming console Nintendo NX by Oct 2015. According to reports Nintendo has collaborated with Foxconn Electronics, and expects pilot assembly of Nintendo NX by October. Foxconn is reportedly employing one million people to accomplish the project. According to Forbes reports, the device may be launched in 2016. The details have been kept under wraps, given concerns regarding information leaks to competitors like Sony and Microsoft.
Performance
The following table shows the price movements of the major video game companies over both the past 5 trading days as well as the 6-month period:
|
Company |
Last 5 Days |
Last 6 Months |
|
ATVI |
-1.64% |
30.66% |
|
EA |
0.25% |
74.25% |
|
GLUU |
-3.92% |
35.32% |
|
MSFT |
-1.90% |
-3.75% |
|
NTES |
-4.91% |
44.36% |
|
TTWO |
-4.26% |
-2.49% |
|
ZNGA |
-3.40% |
4.03% |
Over the last five trading sessions, Electronic Arts was the only stock to remain positive with a 0.3% gain. The stock that lost the most was NetEase, Inc., down 4.9%.
Over the 6-month period, Electronic Arts surged the most — nearly 74.3%. We believe that the continued growth in the company’s mobile gaming audience makes it one of the most consistently performing video game makers in current times. In addition, strategic collaborations with the likes of Google, Apple and Facebook in developing its gaming platform will add to its bottom line over the long term. However, the stock that was down over the same time frame was Microsoft, down 3.8%.
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