[ManofTwo]

Should we still anticipate Nintendo to clean up this holiday and sell more than Sony and Microsoft? I havent been keeping up with how many they expect to ship over holidays.

I don't think so. They could hit their adjusted target but given how widespread the problem is it could prove to be difficult.

 

[ManofTwo]

Activision Blizzard Financial Results Q3 2021

Financial Results


- Year-to-date net bookings for the Activision segment and Call of Duty are higher Y/Y. For the quarter, Activision revenue was lower Y/Y, as expected in our
outlook due to the launch of Tony Hawk'sTMPro SkaterTM1 + 2 in the year ago quarter and declines in Call of Duty upfront and in-game net bookings against a quarter that benefited from shelter-at-home mandates and the early ramp of Warzone.

- Blizzard revenue of $493 million grew 20% year-over-year, driven by the successful launch of Diablo II: Resurrected. Year-to-date, net bookings for Blizzard and for World of Warcraft, its largest franchise, were higher year-over-year

- King revenue grew 22% Y/Y, driven by another strong quarter for Candy Crush. Segment in-game net bookings grew in the mid-teens year-over-year while advertising grew approximately 60%.

 

[ManofTwo]

China Drives Call of Duty Mobile

On mobile, Call of Duty net bookings grew over 40% year-over-year in the third quarter, driven by double-digit growth in the west, and it continued contribution from the game in China.

 

[regawdless]

- Blizzard revenue of $493 million grew 20% year-over-year, driven by the successful launch of Diablo II: Resurrected. Year-to-date, net bookings for Blizzard and for World of Warcraft, its largest franchise, were higher year-over-year

Was the previous year so weak that one successful remaster of an old ass game is responsible for a big part of a 20% increase?

 

[ManofTwo]

Was the previous year so weak that one successful remaster of an old ass game is responsible for a big part of a 20% increase?

Yep it was. Remember they had delays last year to due to covid but they still made releases.

 

[ManofTwo]

EA REPORTS FINANCIAL RESULTS

• In the first six months of the fiscal year, approximately 100 million players have engaged with our EA SPORTS™ global football franchise across all platforms.
• Apex Legends™ Season 9 and Season 10 each respectively set new marks for the highest active players since Season 1.
• The Battlefield™ 2042 Open Beta had 7.7 million players.
• Star Wars™: Galaxy of Heroes surpassed 100 million players life to date.

 

[ManofTwo]

TAKE TWO REPORTS FINANCIAL RESULTS

"Digitally-delivered GAAP net revenue increased 7% to $779.1 million, as compared to $725.7 million in last year's fiscal second quarter, and accounted for 91% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA® 2K22 and NBA 2K21; Grand Theft Auto® Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands® 3; Two Dots®; Sid Meier's Civilization® VI; and Dragon City"

 

[ManofTwo]

TAKE TWO FINANCIAL PRESENTATION Q2 FY 2022.

TTWO Financials Q2 FY 2022.

 

[regawdless]

@ManofTwo thanks for all the info, great work!

 

[HeresJohnny]

@ManofTwo thanks for all the info, great work!

Yeah, this is an awesome thread. @ManofTwo delivers again.

 

[Nikana]

EA REPORTS FINANCIAL RESULTS

• In the first six months of the fiscal year, approximately 100 million players have engaged with our EA SPORTS™ global football franchise across all platforms.
• Apex Legends™ Season 9 and Season 10 each respectively set new marks for the highest active players since Season 1.
• The Battlefield™ 2042 Open Beta had 7.7 million players.
• Star Wars™: Galaxy of Heroes surpassed 100 million players life to date.

ALmost 8 million for the beta is crazy. I don think ATVI has ever released beta numbers but I have to imagine 8 million has to be in the ball park for their record.

Question is how many of those will turn into sales. I think the message is going to be crazy controlled first few days of the boxed release. Granted they have the early access crowd.

 

[ManofTwo]

ALmost 8 million for the beta is crazy. I don think ATVI has ever released beta numbers but I have to imagine 8 million has to be in the ball park for their record.

Question is how many of those will turn into sales. I think the message is going to be crazy controlled first few days of the boxed release. Granted they have the early access crowd.

Really good question. Based on the historical the average is around 87% and the number is lower for 2 yr recurrent

Edit- the average is my average it's missing some data so it could be higher or lower

 

[ManofTwo]

US Video Game Industry Generates Highest Third Quarter Revenue in History​

According to the Q3 2021 Games Market Dynamics: U.S.* report from The NPD Group, overall total consumer spending on video gaming in the U.S. totaled $13.3 billion in the third quarter (Q3) of 2021 (July – Sept.), an increase of 7% when compared to Q3 2020, and the highest third quarter spend in history.


Gains were seen across PC, cloud and non-console VR content, mobile and subscription spending, as well as hardware. Console content and accessories experienced declines.


Overall content spending in Q3 reached $11.7 billion, an increase of 4%. Subscription content was the only content segment with double-digit percentage gains vs Q3 2020. Hardware posted a 60% increase, while accessories declined 1%.


Among the best-selling and most played games across all platforms in the third quarter were Among Us, Animal Crossing: New Horizons, Call of Duty: Black Ops Cold War, Call of Duty: Warzone, Candy Crush Saga, Candy Crush Soda Saga, Coin Master, FIFA 22, Fortnite, Grand Theft Auto V, Madden NFL 22, Mario Golf: Super Rush, Mario Kart 8, Minecraft, NBA 2K22, Pokémon Go, Roblox, Super Smash Bros Ultimate, The Legend of Zelda: Skyward Sword, and The Sims 4.


"Consumer spending on the video game segment continued to grow in the third quarter, driven by console hardware such as the PlayStation 5, Switch and Xbox Series, and the subscription and mobile content segments," said Mat Piscatella, games industry analyst at The NPD Group. "While the market has seen a slight decline in the overall number of people playing video games, those that are playing are doing so for more hours, and spending more, than they did a year ago."


Video game hardware sales were led by the Nintendo Switch, which was the quarter's best-selling hardware platform in unit sales, and Sony's PlayStation 5, which drove the highest hardware consumer spending in the period.


Data from Sensor Tower shows U.S. consumer spending in mobile games during the third quarter increased 9% from Q3 2020. It marked the third consecutive quarter where spend in the category surpassed $6 billion, and the fourth to exceed that amount in total consumer expenditure since Q2 2020.


"Mobile game user acquisition continues to face headwinds amid tightening access to crucial targeting data, but the category as a whole is showing no signs of constriction where consumer spending is concerned," said Randy Nelson, head of mobile insights at Sensor Tower. "Despite new installs showing a generally downward trend after reaching a high point in Q2 2020, spending continues to benefit from the influx of consumers that drove record adoption at the time. Mid-core titles such as Clash of Clans, Call of Duty: Mobile, and Genshin Impact have been the greatest beneficiaries as of Q3 2021, showing the highest growth in per-player spending among the four main classes of mobile games we track."

 

[ManofTwo]

EA FINANCIAL PRESENTATION Q2 FY 2022.

EA. Financials Q2 2022.

 

[regawdless]

EA FINANCIAL PRESENTATION Q2 FY 2022.

EA. Financials Q2 2022.

No wonder why so many companies are chasing the GaaS model and mtx are on the rise.

It's what people whant, I guess.

 

[ManofTwo]

E.A Live Services and P.C Games Standout

 

[ManofTwo]

No wonder why so many companies are chasing the GaaS model and mtx are on the rise.

It's what people whant, I guess.

I wish this wasn't the case b/c it opens the door for more ludicrous ides on monetization.

 

[regawdless]

E.A Live Services and P.C Games Standout

Like to see the PC market being healthy, hope this will mean better optimized games that take more advantage of the compute power.

I wish this wasn't the case b/c it opens the door for more ludicrous ides on monetization.

Oh there will be a lot more of it. 70% are services? That' some ridiculously high number, it's clear where their focus will be. Gotta chase the money!

 

[ManofTwo]

Activision Blizzard adds benefits for temps amid litigation​

• Activision Blizzard is giving new benefits to contractors, the latest development in the company's contentious relations with workers this year.
  
  
• The contract workers will now get 13 paid holidays per year, along with paid sick days for third-party agency workers to start in January.
  
  
• Workers who are paid below a rate of $17/hour will be bumped up to that rate starting Nov. 15. And learning and development programs will be offered to both employees and temp workers starting in the new year.
  
  
• On the other hand, Axios notes that the company is asking the Department of Fair Employment and Housing to exclude temps from litigation.
  
  
• California in August added temporary workers to the purview of an anti-discrimination suit that it filed against the company.
  
  
• Elsewhere, Blizzard Entertainment has a multi-year deal with trading-card company Upper Deck to produce merchandise tied to franchises including World of Warcraft, StarCraft, Diablo, Overwatch, Heroes of the Storm, and Hearthstone. Upper Deck will be able to produce trading cards, stickers, sticker books, limited edition prints and more items.

 

[ManofTwo]

Roblox powers ahead, sees rise in user engagement and spending activity​

Roblox Q3 Financials 2021.

 

[ManofTwo]

New Chinese Law Effect on Tencent Earnings

Starting from 1 September 2021, we have implemented new measures to fully comply with the latest
regulations on restricting Minors6' game time in China. Minors accounted for 0.7% of our Domestic Games
time spent in September 2021, significantly declining from 6.4% in September 2020. In terms of our Domestic

Games grossing receipts, Minors accounted for 1.1% in September 2021, significantly declining from 4.8%
in September 2020. We continued our industry-leading efforts in combatting Minors' usage of adult accounts;
for example, we upgraded our screening system to identify misused accounts.

 

[regawdless]

New Chinese Law Effect on Tencent Earnings

Managers are so happy that they have been forced to reduce these numbers.

Curious what business effect this will have in the long term. Because my assumption is that people who grow up playing a lot of videogames are more likely to spend a significant amount of money when they're older and can afford it. With less young people getting hooked, it might have a negative impact in the long term.

 

[ManofTwo]

Managers are so happy that they have been forced to reduce these numbers.

Curious what business effect this will have in the long term. Because my assumption is that people who grow up playing a lot of videogames are more likely to spend a significant amount of money when they're older and can afford it. With less young people getting hooked, it might have a negative impact in the long term.

I think they're smart enough to monetize adult content in a way that makes up for the reduction in sales to young ppl.

Especially seeing Minors only accounting for less than a percent of total. They could also make up for it on the international market.

 

[regawdless]

I think they're smart enough to monetize adult content in a way that makes up for the reduction in sales to young ppl.

Especially seeing Minors only accounting for less than a percent of total. They could also make up for it on the international market.

My logic would be:

- Young people play a lot but don't spend much money. As shown by the data of 6,4% gaming time and grossing 4,8%.
- Once they grow up, they become the group that spends the most money on games.
- Trying to reduce the amount of young gamers will result in less adult gaming enthusiasts that are willing to spend a lot of money.

I'm sure they'll be fine and will make the money elsewhere. I'm just curious about the long term impact on gaming enthusiasm.

 

[ManofTwo]

My logic would be:

- Young people play a lot but don't spend much money. As shown by the data of 6,4% gaming time and grossing 4,8%.
- Once they grow up, they become the group that spends the most money on games.
- Trying to reduce the amount of young gamers will result in less adult gaming enthusiasts that are willing to spend a lot of money.

I'm sure they'll be fine and will make the money elsewhere. I'm just curious about the long term impact on gaming enthusiasm.

I think this is a good pt, I don't think it will impact it as much.

 

[Grisham]

Remedy released its financial results for the quarter ended September, 30, 2021, with revenue dropping 25.4% year-on-year to €7.4 million.

This decline was due to a decrease in Control royalties, the developer explained, as well as "reduced development fees" coming from its partnership with Smilegate on Crossfire.

As a result, operating profit plummeted during the quarter, to €290,000, compared to €3.4 million for the same quarter last year, which had seen Control Ultimate Edition launch on Steam and Remedy receive development fees from 505 Games for Condor, Control's multiplayer spin-off.

Looking at the figures from January to September 2021 softens the blow though, as revenue is only down 7.3% year-on-year for the period, to €24.9 million, as Control launched on PS5 and Xbox Series X|S in February.

 

[Grisham]

Embracer Group publishes Interim Report Q2 2021: OPERATIONAL EBIT INCREASED 49% TO SEK 973 MILLION

SECOND QUARTER, JULY–SEPTEMBER 2021 (COMPARED TO JULY–SEPTEMBER 2020) · Net sales increased by

news.cision.com

SECOND QUARTER, JULY–SEPTEMBER 2021 (COMPARED TO JULY–SEPTEMBER 2020)

• Net sales increased by 38% to SEK 3,296.4 million (2,383.2).
• Net sales of the Games business area increased by 89% to SEK 2,831.1 million (1,495.4). THQ Nordic SEK 374.0 million (566.9), Koch Media Publishing SEK 584.7 million (506.8), Coffee Stain SEK 120.4 million (129.9), Saber Interactive SEK 462.9 million (259.1), DECA Games SEK 248.8 million (32.7), Gearbox Entertainment SEK 433.6 million (-) and Easybrain SEK 606.7 million (-).
• Net sales of Partner Publishing/Film business area amounted to SEK 465.3 million (887.8).
• EBITDA increased by 69% to SEK 1,640.0 million (969.0), corresponding to an EBITDA margin of 50% (41%). Remeasurement of participation in associated company Ghost Ship Games amounted to SEK 416.8 million in the quarter (and is included in reported EBITDA, but excluded from Operational EBIT).
• Operational EBIT increased by 49% to SEK 973.4 million (652.5) corresponding to an Operational EBIT margin of 30% (27%).
• Cash flow from operating activities amounted to SEK 1,024.0 million (804.7). Investments in intangible assets amounted to SEK 916.5 million (484.1). Free Cash Flow before change in working capital amounted to SEK 17.1 million (358.9).
• Adjusted earnings per share was SEK 0.65 (0.90). Adjusted EPS after exclusion of unrealized and realized fx gains/losses and discount interest effect on provisions was 0.81 (0.80).
• Organic growth in constant currency for the Games Business Area amounted to –9% in the quarter. Proforma growth in constant currency for the Games Business Area amounted to 11% in the quarter.
• Total game development projects increased 46% to 197 (135).
• Total headcount increased by 104% to 9,064 (4,445) and the total number of game developers increased by 108% to 7,470 (3,593). Organic growth for internal headcount in the Group was 25%.

In the past 12 months, we have made 37 acquisitions and expect to do a similar amount of transactions over the coming 12 months. We currently have a large range of active processes and dialogues, including a good number of signed exclusive term sheets.

 

[ManofTwo]

Ubisoft launches new Quebec studio amid C$950 million investment​

• Ubisoft is opening a fourth videogame development studio in Quebec, part of a C$950 million investment in the region.
• The game maker will set up the new shop in Sherbrooke, the academic and economic hub of the Eastern Townships.
• Among the C$950 million in new investment is a targeted C$17 million plan for three programs to support youth training, entrepreneurship and innovation (Ubisoft Education, Ubisoft Entrepreneurs and La Forge).
• It also plans an accelerator to support independent videogame businesses to launch in 2022.
• The company drew mention from Morgan Stanley recently as a company with "free upside options" from exposure to metaverse investment trends.

 

[regawdless]

Ubisoft launches new Quebec studio amid C$950 million investment​

Investment in a region = tax deals and/or other gifts from the government. Which makes sense and is the way to go. Good for them and the region.

 

[ManofTwo]

Activision CEO would consider stepping down if issues not fixed quickly​

• Embattled Activision Blizzard (NASDAQ:ATVI) CEO Bobby Kotick told colleagues he would consider leaving the videogame maker if can't quickly fix cultural issues at the company.
  
  
• Kotick told senior managers he could potentially leave the company in a meeting on Friday, according to a WSJ report. He stopped short of saying he would exit the organization. An Activision spokeswoman didn't respond to WSJ requests for comment.
  
  
• Kotick has been under pressure from employees, investors and business partners such as Microsoft's (NASDAQ:MSFT) Xbox division and Sony's (NYSE:SONY) Playstation unit after allegations of sexual misconduct were detailed in a Wall Street Journal story last week.

 

[Kadayi]

Activision CEO would consider stepping down if issues not fixed quickly​

The problem I foresee is whoever steps in has to pick up the poison chalice of the hollowed-out shell of a company Kotick has left Activision in. Kotick has done zip in terms of IP development beyond CoD clones and it's going to take a good few years before they're likely to bring anything new to the market short of some 3rd party acquisitions. He really has fucked them for every cent he can tbh.

 

[Grisham]

U.S. FTC sues to block Nvidia deal to buy Arm

The U.S. Federal Trade Commission on Thursday sued to block U.S. chip company Nvidia Corp's more than $80 billion planned acquisition of British chip technology provider Arm, adding to already significant global regulatory challenges of the deal.

www.reuters.com

 

[Grisham]

CD Projekt has entered settlement talks with investors who sued over its botched Cyberpunk launch | VGC

Company was accused of violating federal laws by misleading shareholders over the game’s quality…

www.videogameschronicle.com

CD Projekt has entered settlement negotiations with a group of investors who sued the company over Cyberpunk 2077's disastrous launch last year.

Following three delays, the highly anticipated RPG released in December 2020 with a host of technical problems, resulting in refunds being offered, the title being pulled from the PlayStation Store and CD Projekt shares tumbling.

Following the botched launch, a number of CD Projekt shareholders in the US filed class action lawsuits accusing the company of violating federal laws by misleading investors over the quality of Cyberpunk 2077, causing them to incur damages.

In May, CD Projekt confirmed that four class action lawsuits filed in the US had been consolidated and that a lead plaintiff had been appointed ahead of potential common court proceedings.

But in a regulatory update on Wednesday, CD Projekt said it had been informed by its law firm that the US District Court for the Central District of California "had suspended proceedings concerning the motion to dismiss due to the parties having entered into negotiations concerning a potential settlement".

The filing continued: "Should a consensus be reached with regard to the conditions of the potential settlement, the parties will file for its approval by the Court.

"The decision on whether to approve the settlement and permit its implementation shall be issued by the Court once certain additional formal conditions are satisfied.

"It should also be noted that entering into negotiations concerning a potential settlement should in no way be construed as acceptance by the Company or members of its Management Board of any allegations expressed in the plaintiffs' court filings."

 

[ManofTwo]

CD Projekt has entered settlement talks with investors who sued over its botched Cyberpunk launch | VGC

Company was accused of violating federal laws by misleading shareholders over the game’s quality…

www.videogameschronicle.com

I saw this and not only that they're being sued by 3 more investment groups. I think the total exceeds $400 million .

 

[Kadayi]

I saw this and not only that they're being sued by 3 more investment groups. I think the total exceeds $400 million .

Anyone with any sense would have known that CDP was overhyped and overpriced. The only thing any of those lawsuits going through would do is result in driving CDP into Bankruptcy. The only person who'd be happy about that would beJason Schreier, who has played a big part in defaming them with his hit piece articles.

 

[Grisham]

GameStop losses top $105 million despite sales bump

GameStop has released its financial results for the third quarter of 2021, reporting a mixed bag of net sales growth an…

www.gamesindustry.biz

GameStop has released its financial results for the third quarter of 2021, reporting a mixed bag of net sales growth and substantial losses year-over-year.

For the three months ended October 30, the company reported net sales of $1.29 billion, a 29% increase on the $1 billion made during the same period in 2020.

Of the total, $669.9 million (51%) was generated by hardware sales, an increase on the $413.4 million in the same period last year.

Net losses for the quarter amounted to $105.4 million, a sizable increase on the $18.8 million reported in Q3 last year, but an improvement on the $111 million lost during Q2, 2021.

GameStop attributed the rise in sales to new and expanded brand relationships with various companies, including Samsung, Razer, LG and Vizio, among others.

Back in June, the retailer raised $1.13 billion through a stock sale, topping up the $551 million it raised in April.

Last month, GameStop COO Jenna Owens left the company after just a seven-month stint in the position, though no reason was given for her departure.

 

[Grisham]

Real data: inside Epic's plans for Epic Games Publishing

The Apple vs. Epic trial serves up one last data iceberg.

newsletter.gamediscover.co

Embracer purchases Asmodee for €2.75bn

Today Embracer Group announced that it has purchased French board game publisher Asmodee.

www.gamesindustry.biz

 

[Grisham]

CD Projekt has entered settlement talks with investors who sued over its botched Cyberpunk launch | VGC

Company was accused of violating federal laws by misleading shareholders over the game’s quality…

www.videogameschronicle.com

CD Projekt has settled its Cyberpunk launch lawsuit, paying suing investors just $1.85m | VGC

The company was accused of violating federal law by misleading shareholders about the game…

www.videogameschronicle.com

CD Projekt has agreed on settlement terms with a group of investors who sued the company over Cyberpunk 2077's disastrous launch.

A new statement released today states that negotiations were concluded on Wednesday and will see CD Projekt paying out just $1.85 million dollars to the plaintiffs.

"According to the Term Sheet, members of the class (including the plaintiffs) shall relinquish any and all claims against the Company and members of its Management Board," the statement reads.

"In return, a settlement in the amount of $1,850,000 USD shall be paid out to the class by the Company and its insurer.

"As expressly stated in the Term Sheet, execution of the Term Sheet does not imply admission of any responsibility on the part of the Company or any of the other defendants named in the case."

 

[Grisham]

 

[Kadayi]

Big moves by Pitchford there tbh. Kind of surprising given what Cryptic Specialise in. Maybe a Borderlands MMO in the works?