2023 Sees the Video Game Industry in Transition

2023 Sees the Video Game Industry in Transition

So far 2023 has been a stagnant year for the video game industry.  DFC Intelligence forecasts that worldwide revenue for PC and console games will remain flat for the year at $74 billion.  However, from a strategic perspective the industry is undergoing a remarkable business model transition. As large publishers focus on live services there is growing potential for smaller publishers and developers. Living Games Redefine Launch Strategies Heading into the holiday season one.....

Microsoft Activision Blizzard Ushers in New Era for Game Industry

The completion of the Microsoft acquisition of Activision Blizzard launches a new era for the video game industry.   After years of struggle Microsoft has bought itself a position as a leading industry force.  The overall impact will be huge but remains uncertain.  However, we can start sketching out the major players and how this battle for market control is likely to play out. Microsoft is Now Largest Video Game Publisher In recent months, DFC Intelligenc.....
Gaming Giants: Amazon Expands Video Game Publishing

Gaming Giants: Amazon Expands Video Game Publishing

Overview As the video game industry has become a key driver of consumer leisure expenditures, many leading media enterprises are actively entering the space.  Microsoft’s pending acquisition of Activision Blizzard is one of the largest media deals ever. Of course, Microsoft has been a major player in video games for years.  The fact that Microsoft is taking the acquisition route after years of struggling in the console game business shows 1) how difficult it is to .....
Microsoft Video Game Results Remain Disappointing

Microsoft Video Game Results Remain Disappointing

For its fourth fiscal quarter ending 6/30/2023, Microsoft reported gaming revenue was up 1% year-over-year.  Xbox content and services grew 5% while Xbox hardware declined 13%. Analysis Microsoft’s video game performance continues to significantly underperform the industry.  The poor sales for Xbox hardware is in stark contrast to record sales for Sony’s PlayStation 5.  Clearly Microsoft needs .....
Embracer Group Revenue Soars After Acquisitions

Embracer Group Revenue Soars After Acquisitions

For the fiscal year ended 3/31/23 the Embracer Group (EMBRAC-B.ST) saw sales grow 121% to SEK 37,665 million (about $3.5 billion).  The growth was driven by major acquisitions the company made during the year.  Organic growth was 2% for the fiscal year and -4% in the fourth quarter. The company also announced that they received indications that a major partnership they were working on looked like it might not materialize.  Embracer lowered its EBIT forecast for fiscal 20.....
Take-Two Stock Up Despite Mixed Results

Take-Two Stock Up Despite Mixed Results

Take-Two Interactive (NASDAQ: TTWO) reported revenue of $5.35 billion for the fiscal year ending 3/31/23.  This beat the guidance of $5.24 to 5.29 billion.  However, the company reported a net loss of $1.13 billion versus guidance that the loss would be in the $700 million range. For fiscal 2024, ending 3/31/24, Take-Two is forecasting revenue to remain relatively flat at $5.37 to $5.47 billion.  Net loss is anticipated in the $500 million range. Despite the earni.....
Sega Sammy Looking at Major Growth in North America and Europe

Sega Sammy Looking at Major Growth in North America and Europe

For fiscal 2023 ending 3/31/23, Sega Sammy Holdings (6460.T-JP: Tokyo) saw overall revenue grow 21% over 2022 to ¥390 billion.  The Consumer Entertainment Content division that focuses on home video games had YOY growth of 19% for fiscal 2023 and 17% in the fourth quarter.  For fiscal 2023, Consumer Entertainment Content accounted for 48% of total revenue and 70% of operating income. For fiscal 2024 which ends 3/31/24, Sega Sammy is forecasting 55% revenue growth for full ga.....