Wednesday, August 03, 2016

Tenative Earning Projections Post E3

Back to the business side of the gaming world. Over the next few days, Activision/Blizzard and EA will be releasing their quarterly earnings reports. A number of experts are weighing in on the results, hoping for a favorable output after E3, coinciding with a boost of pre-orders and digital downloads after the show. In general console sales have been on the downswing for nearly two years, with game sales not showing any change since this time last year. With many of the games announced at E3 to be released this year, investors are hoping it'll spur people into buying them up just in time for the holidays.

EA's forecast yesterday was light. They are in the green thanks to the digital market, but are being modest about their projections for the rest of the year. The estimation is down to $1.08 billion in revenue, matching the Stock Exchange's expectations set early 2016.

To help diversify portfolios, a number of the larger game publishers are looking to mobile gaming. GameStop has been attempting to do this for years, and just acquired a few AT&T mobile locations across 27 states that will act as mobile/digital hubs for consumers. The likes of EA and Activision are potentially looking to do the same, just off the heels of the success of Pokémon Go.

The gaming world on the business end is in a tentative state right now. The market is changing. They see it. But they are afraid to take any big risks that don't reap immediate rewards. We may see a slew of the same ol' games for another year or two until publishers feel safe with their stock holders to do something bold.

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