2024 Gaming Report: Challenges, Top Stock Picks, How GTA VI Will Shape Next Year's LineUp
Portfolio Pulse from Franca Quarneti
Stifel Financial Corp.'s 2024 gaming report suggests a weaker lineup compared to 2023, with potential challenges in sales performance. The report forecasts a decline in consumer spending on new console and PC games, but identifies Take-Two Interactive (TTWO) and Electronic Arts (EA) as favorable prospects. Take-Two's GTA VI is expected to be a growth catalyst, while EA's live services contribute to net bookings. The report is neutral on CD PROJEKT (OTGLY) and Ubisoft (UBSFF), and sees opportunities in Corsair Gaming (CRSR), Turtle Beach (HEAR), and Roblox (RBLX) due to their market segments. The industry's software development costs and developer headcount show positive trends, but their impact may not be immediate.
December 21, 2023 | 3:11 pm
News sentiment analysis
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NEUTRAL IMPACT
CD PROJEKT maintains a neutral stance due to updates on long-term projects and the need for precise execution of upcoming releases.
The neutral stance on CD PROJEKT reflects uncertainty in the company's ability to capitalize on its long-term projects and the successful launch of new titles.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Ubisoft Entertainment SA has a neutral outlook, with the successful execution of Star Wars Outlaws being a critical factor.
Ubisoft's neutral rating is influenced by the need for precise execution of its upcoming Star Wars Outlaws release, which is crucial for the company's performance.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Corsair Gaming is identified as a potential opportunity due to its positioning in accessories and related market segments.
Corsair Gaming's niche in gaming accessories may provide insulation from the volatility of frontline game releases, presenting an alternative investment opportunity.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Electronic Arts is seen as resilient due to its strong base in live services, which contributes significantly to net bookings.
EA's focus on live services is a strategic advantage that can provide stable revenue, making it a relatively favorable prospect in a market facing potential declines.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Turtle Beach Corp. is seen as an investment opportunity due to its position in the gaming accessories segment.
Turtle Beach's specialization in gaming accessories could offer growth potential, especially as the report suggests a weaker lineup for new game releases.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Roblox Corp. is highlighted as a potential opportunity due to its involvement in live services, virtual currency, and other related segments.
Roblox's business model, centered around live services and virtual currency, may provide a stable revenue stream and growth potential in a market with fewer blockbuster releases.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Take-Two Interactive is expected to see growth with the upcoming release of GTA VI, which could shape the gaming lineup for the next years.
GTA VI is a highly anticipated game that could significantly boost Take-Two's sales and market position, making it a favorable prospect despite a projected overall decline in the gaming sector.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90