Fri, May 15, 4:52 PM
- Video game spending was up slightly Y/Y in April, gaining 3% to $595.7M, paced by a 13% increase in physical software sales, according to industry trackers NPD Group.
- That's apart from mixed results in hardware sales -- which were up 12% in unit terms, but declined 4% on a dollar basis to $183.9M, after a round of console price cuts.
- Physical software rose to $256.7M. This month, violent games took the spotlight, with "Fatality"-friendly Mortal Kombat X (NYSE:TWX) the new game topping the chart. It was followed by Grand Theft Auto V (NASDAQ:TTWO) and Battlefield: Hardline (NASDAQ:EA). MLB 15: The Show (NYSE:SNE), another new game, came in at the fourth spot, just ahead of Minecraft.
- GTAV was one of three games that Take Two had in the top 10, along with NBA 2K15 and Borderlands: The Handsome Collection.
- At long last, the Xbox One (NASDAQ:MSFT) took over the top console spot from PlayStation 4 (SNE) despite no big game news to push it; Xbox One sales were up 63% Y/Y.
- Nintendo (OTCPK:NTDOY) says that the Wii U is up 15% for the first four months of 2015 vs. the year-ago period, and 3DS sales up 65% Y/Y for that same period.
Fri, May 15, 4:07 PM
- Senate Bill 9 has been passed by both legislative chambers in Nevada, clearing the way for skills-based casino floor games.
- The development also opens a door for videogame sellers to create or license casino versions of their popular titles.
- The casino industry has its eyes on attracting millennials after seeing the group show tepid demand for classic table games and slot machines.
- New Jersey and Mississippi have also set the stage for casino floor innovation with similar legislation.
- Previously: Paging Steve Nash to the Borgata (Feb. 13)
- Related stocks: CZR, WYNN, SGMS, ISLE, PNK, PENN, MCRI, CNTY, IGT, MGM, BYD, OTCQB:TPCA, ATVI, TTWO, EA.
- Related ETFs: BJK
Tue, May 5, 4:22 PM
- Electronic Arts (NASDAQ:EA) is up 4.4% after hours, following a fiscal Q4 report where it beat expectations for revenue and earnings and finished a record year for net revenue and operating cash flow.
- EA says it reached a three-year goal to double operating margins to 20% a year ahead of schedule.
- Non-GAAP revenue by segment: Digital net revenue, $602M (up 9.5%); Packaged Goods and Other net revenue, $294M (down 19.2%).
- EA noted that during its fiscal year it was the top publisher on PlayStation 4 and Xbox One consoles, on the back of Battlefield: Hardline (30M game sessions in Q4), Dragon Age: Inquisition (200M hours played in total) and other games including Madden NFL 15 and FIFA 15.
- The company authorized a new $1B repurchase program for the next two years.
- Conference call at 5 p.m. ET.
- Press Release
Tue, May 5, 4:06 PM
Mon, May 4, 5:35 PM
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Fri, Apr. 17, 5:39 PM
- A new version of popular series Battlefield wasn't enough to boost video game sales in March, as software sales slipped 3% Y/Y to $395.4M. But software was positively solid compared to game hardware sales that slipped 21% Y/Y to $311.1M, according to NPD Group.
- In new retail games, Battlefield: Hardline (NASDAQ:EA), a cops-and-robbers version of the war-game series, led sales charts followed by another new entry, action role-player Bloodborne (NYSE:SNE) which was strong despite being a PS4 exclusive.
- The top five was rounded out by Grand Theft Auto V (NASDAQ:TTWO), Mario Party 10 (OTCPK:NTDOY), and Call of Duty: Advanced Warfare (NASDAQ:ATVI).
- Physical software sales showed sharp declines for previous-generation consoles, which points to the health of the new generation (PS4, Xbox One, Wii U), whose software sales increased 58% Y/Y.
- In hardware, Sony says PS4 again topped the charts, but everyone's doing well in the new generation: “This is the 17th month of sales for the Xbox One and PS4, whose combined cumulative hardware sales are over 50% higher than the combined 17-month cumulative sales totals for the Xbox 360 and PS3,” said NPD's Liam Callahan.
- In a market down more than 1% today, GameStop (NYSE:GME) did worse, down 3.1%.
- And in other EA news, at the ongoing "Star Wars Celebration" event going on in Anaheim, Calif., today's news included the reveal trailer for Star Wars: Battlefront wowing fans. Launching Nov. 17, the game showcases high-definition visuals but takes a somewhat risky move of dropping single-player missions entirely for cooperative and multiplayer.
Fri, Mar. 13, 5:15 PM
- NPD estimates U.S. physical retail game sales rose 7% Y/Y in February to $338.9M, up from January's 5% growth and better than expected. Hardware sales rose 10% to $378.2M, as next-gen console demand remains healthy. Superdata Research estimates digital game revenue rose just 2% to $995M, thanks to weak mobile and social game sales.
- Nintendo (OTCPK:NTDOY) had a good month: The recently-refreshed 3DS XL handheld was February's top-selling console - Ninetendo says 394K 3DS units were sold - and The Legend of Zelda: Majora's Mask 3D (launched on Feb. 13) topped NPD's game rankings.
- Take-Two (NASDAQ:TTWO) also did well: Evolve (launched on Feb. 10) was #2 on NPD's list, GTA V came in at #5 (down from January's #3) ahead of its March 24 PC launch, and NBA 2K15 was at #6 (down from #5). Take-Two recently said it was "very pleased" with Evolve's launch.
- Activision's (NASDAQ:ATVI) Call of Duty: Advanced Warfare fell two spots to #4, while Destiny (#9 last month) fell out of the top-10. Electronic Arts' (NASDAQ:EA) Madden NFL 15 and FIFA 15 also dropped out.
- Piper observes Take-Two and Activision's NPD sales were respectively up 72% and 16% Y/Y in February, and that EA's were down 32% over the first two months of 2015. It maintains Overweight ratings on all 3 firms.
- Take-Two rose 3.9% in regular trading thanks to the numbers. GameStop (NYSE:GME) also got a lift, rising 3.5%. Activision rose 0.9% and EA rose 0.4%.
Tue, Mar. 10, 10:41 AM
- With shares having closed yesterday not far from a 52-week high of $58.87 (set on Feb. 26), Needham has downgraded Electronic Arts (NASDAQ:EA) to Hold.
- The gaming giant remains up 13% from where it traded prior to its Jan. 27 FQ3 beat, which was driven by surging digital revenue and cost controls. EA currently goes for ~15x trailing free cash flow.
Mon, Feb. 9, 7:21 AM
- A state senate bill floating around in Nevada proposes to allow more games of skill than chance on the floors of casinos in the state.
- A passage of the bill could set off a flood of new casino games based off of popular videogames.
- Videogames at casinos are seen as a way to draw in more of the 75M millennials who as a group have shied away from slot machines and games of blind luck.
- The potential also exists to introduce gambling through apps for games in Nevada and create cash tournaments online.
- Related stocks: LVS ,CZR, BYD, MGM, WYNN, SGMS, ATVI, TTWO, EA.
Wed, Jan. 28, 12:44 PM
Tue, Jan. 27, 6:28 PM
- Electronic Arts (NASDAQ:EA) is guiding for FQ4 revenue of $830M and EPS of $0.22, below a consensus of $911.6M and $0.26. However, the huge beat posted for EA's seasonally biggest quarter is taking priority.
- EA's packaged goods/other revenue (traditional game sales) fell 31% Y/Y in FQ3 to $755M. But full game download revenue rose 22% to $140M, extra content revenue 47% to $314M, and subscriptions/ad/other revenue 52% to $100M. Mobile revenue grew 13% to $139M.
- Also boosting EPS: Sales/marketing spend fell 21% to $169M. R&D spend rose 3% to $283M. $97M was spent on buybacks.
- Xbox One/PS4 revenue rose 51% to $593M. Xbox 360/PS3 revenue fell 42% to $412M. International markets accounted for 58% of sales.
- FQ3 results, PR
Tue, Jan. 27, 4:05 PM
Mon, Jan. 26, 5:35 PM
Fri, Jan. 16, 10:35 AM
- Activision's (ATVI +6.3%) Call of Duty: Advanced Warfare topped NPD's U.S. physical retail game sale rankings for the second month in a row in December. Destiny, which Activision hopes will be its third $1B+ franchise, was #9.
- In a PR, Activision says Advanced Warfare was the "top-selling console game of 2014 globally," and that Destiny was the #2 2014 U.S. console game in terms of revenue. Skylanders was the top kids video game franchise globally (inc. toys/accessories sales), with a 30% sales edge over its biggest rival (presumably Disney's Infinity).
- Electronic Arts' (EA - unchanged) Madden NFL 2015 rose a spot to #3, and FIFA 15 returned to the top-10 (at #10). Take-Two's (TTWO +1.8%) Grand Theft Auto V was at #2 for another month, continuing to get a lift from its next-gen console and PC launches. NBA 2K15 rose three spots to #5.
- NPD estimates total U.S. physical retail game sales fell 2% Y/Y to $1.25B. Hardware sales, facing tougher comps (given next-gen consoles launched in Nov. 2013), fell 4% to $1.31B, with the Xbox One outselling the PS4. Next-gen consoles are performing 65% better than prior-gen consoles had over their first 14 months. GameStop (GME +3%), just three days removed from reporting better-than-expected holiday sales, is reacting favorably to the numbers.
- Superdata Research estimates U.S. digital game spend rose 11% Y/Y in December to $1.2B. Mobile game sales (35% of 2014 sales) rose 17%, and digital console game sales (8% of 2014 sales) 10%.
- EA reports on Jan. 27, Take-Two on Feb. 3, and Activision on Feb. 5.
- Previously: NPD's November data
- Update (2:15PM): EA is now up 1.8%, aided by a 0.8% increase for the Nasdaq. Activision is now up 9.2%, Take-Two 4.2%, and GameStop 4.5%.
Tue, Jan. 6, 10:29 PM
Thu, Jan. 1, 2:19 AM
- Dow: INTC +41%; UNH +35%; HD +28%; CSCO +25%; MSFT +25%.
- S&P 500: LUV +125%; EA +106%; EW +95%; AGN +92%; AVGO +91%.
- Nasdaq: AAL +112%; EA +106%; AVGO +91%; GMCR +78%; ILMN +68%.
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