Not much happened in the gaming industry last week and the stock performance was a mixed bag over the past five trading sessions. One of the main highlights was market research firm, eMarketer’s mobile game revenue growth data.
Also, Take-Two Interactive (TTWO) announced that Grand Theft Auto Online Heists will be released in March which created ripples in the industry.
Other major highlights include Activision Blizzard, Inc.’s (ATVI) Diablo 3 microtransactions launch, Scientific Games Corporation’s (SGMS) international awards win and the rebranding of GTECH S.p.A. post its International Game Technology (IGT) acquisition.
Top Stories over the Last Week
1. eMarketer released mobile game revenue growth data. According to the Internet market research firm, U.S. mobile game revenues — including downloads and in-app purchases — will grow 16.5% in 2015 to $3.04 billion. Mobile games will account for 30.9% of the U.S. mobile content market in 2015, up from 29.3% in 2014. Per the firm, in-app purchases will drive the double-digit growth, given the increased use of smartphones and tablets. As a result, eMarketer expects in-app revenue for mobile games to reach $1.82 billion, or 59.8% of all mobile game revenues, in 2015, and $2 billion in 2016, when its share of the mobile game market will hit 60.1%.
2. Take-Two Interactive’s Rockstar Games recently announced that Grand Theft Auto Online Heists will hit the market on Mar 10. Heists will add new four-player cooperative gameplay experience to Grand Theft Auto Online, giving players the chance to team up for multi-part raids and robberies across Los Santos and Blaine County. However, the PC version of the game would be available on Apr 14. To compensate for the delayed launch of the PC version, the company would offer $200,000 bonus cash in-game to players.
3. Activision Blizzard is finally trying to settle some long-pending issues with its infamous action role-playing hack and slash video game — Diablo 3 — launched in May 2012. Back then, the company hosted a gold and real-money auction house dealing with Real Money Transactions (RMT) that ultimately failed and was removed from the game. However, this time the gaming company plans to add microtransactions to the gamewith patch 2.2.0. The company is introducing a new currency called “Platinum,” which players can buy using real cash. With Platinum currency players can purchase timed experience boosts, cosmetic wings, pets and character portraits as well as character slots.
4. Recently, Italy-based GTECH S.p.A. declared that following the acquisition of International Game Technology, the combined company will be rebranded as International Game Technology plc and trade on NYSE under the ticker symbol “IGT”. The merged company will enjoy a premium position in the global gaming industry and focus on offering novel end-to-end gaming solutions leveraging the state-of-the-art technology and pioneering content.
5. Scientific Games Corp. announced that they have won a couple of esteemed international awards ‘2015 Lottery Operator of the Year Award’ and ‘2015 Lottery Supplier of the Year Award’ at ICE Totally Gaming 2015. This mega business-to-business international gaming event was held in the beginning of February. These awards reinforce the company’s prowess in the international gaming industry.
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 last 6 months:
|
Company |
Last 5 Days |
Last 6 Months |
|
ATVI |
0.17% |
1.30% |
|
EA |
0.10% |
53.54% |
|
GLUU |
0.98% |
0.79% |
|
MSFT |
0.46% |
-1.24% |
|
NTES |
-4.51% |
23.08% |
|
TTWO |
-1.74% |
21.07% |
|
ZNGA |
-0.43% |
-21.36% |
Over the last 5 trading sessions, the company that gained the maximum was Glu Mobile, Inc. (GLUU) with 0.98% hike in stock price. Meanwhile, the company that lost the most was NetEase, Inc. (NTES) registering a 4.51% share price decline.
Over the 6-month period, Electronic Arts Inc. (EA) surged the most — nearly 53.54%. 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 further add to its bottom-line growth over the long term.
Over the 6-month period, the stock that lost the most over this time period is Zynga, which dropped 21.36%.
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
Be the first to comment