In-Game Revenue Key For Publishers Like Activision, Electronic Arts, Says Wedbush Analyst
Portfolio Pulse from Jayson Derrick
Wedbush analyst Michael Pachter highlights the importance of in-game revenue for video game publishers like Activision Blizzard, Electronic Arts, and Take-Two Interactive. He notes that a significant portion of their revenue comes from in-game spending, which benefits from increased screen time during the stay-at-home trend. Pachter also mentions the slow uptake of esports as a generational phenomenon.
April 21, 2020 | 7:35 pm
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POSITIVE IMPACT
Activision Blizzard benefits significantly from in-game revenue, with two-thirds of its revenue coming from this source. The mobile version of 'Call of Duty' is expected to generate $300-$400 million.
Activision Blizzard's reliance on in-game revenue, which constitutes two-thirds of its total revenue, positions it well to benefit from increased gaming during the stay-at-home trend. The expected high revenue from 'Call of Duty' mobile further supports a positive short-term outlook.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Electronic Arts derives about half of its revenue from in-game spending, making it a beneficiary of increased gaming activity during the stay-at-home trend.
Electronic Arts' significant portion of revenue from in-game spending positions it to benefit from the increased gaming activity during the stay-at-home trend, suggesting a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Glu Mobile is also seen as a massive beneficiary of the stay-at-home trend due to its in-game revenue exposure.
Glu Mobile's exposure to in-game revenue makes it a significant beneficiary of the increased gaming activity during the stay-at-home trend, indicating a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Take-Two Interactive also benefits from in-game revenue, with about half of its revenue coming from this source, aligning with the stay-at-home gaming trend.
Take-Two Interactive's reliance on in-game revenue, which constitutes about half of its total revenue, aligns with the increased gaming activity during the stay-at-home trend, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Zynga is identified as a massive beneficiary of the stay-at-home trend due to its exposure to in-game revenue.
Zynga's exposure to in-game revenue positions it as a significant beneficiary of the increased gaming activity during the stay-at-home trend, suggesting a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Netflix is compared to a buffet model, but the comparison is only partly true for video game publishers.
Netflix is mentioned in a comparison context, but the focus of the article is on video game publishers and their in-game revenue, making the impact on Netflix neutral.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 30