NOTE: This page uses real-time stock quotes. Load times may be slower than usual. Information about specific companies is not intended to be a complete description, nor of their securities, nor is this study an offer to buy or sell such securities.DFC does not underwrite or own the securities of the companies the analysts cover. Investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock and should consult a stock professional for their investment guidance.
Overview
The DFC Intelligence Video Game Stock Index tracks public companies in the video game and interactive entertainment space. Companies are divided into one of three categories 1) Hardware for companies that specialize in manufacturing and distributing hardware used to play games; 2) Software for companies that develop and distribute software and services for the video game industry and 3) Conglomerates for companies that are involved in the video game industry, but only as one part of their overall business.
The DFC Video Game Stock Index was launched on January 3, 2023, with 23 companies. These are all companies that are involved with software and services. There is a separate index that focuses on hardware and accessories.
The DFC Video Game Stock Portfolio was also launched on January 3, 2023. This represents a hypothetical investment of $15,000 in companies DFC feels have both short-term growth potential and a solid long-term strategy.
Companies in DFC Intelligence Video Game Stock Portfolio
These are the companies currently in the DFC Intelligence Video Game Stock Portfolio. There is a brief description of why DFC believes the stock price will increase. Initial shares were purchased on 1/3/2023 with later purchase and sell activity noted below. Click on the link for more analysis.
Activision Blizzard (NASDAQ: ATVI): Activision Blizzard is in the process of being acquired by Microsoft at $95 a share. DFC currently believes the deal will go through. If not the ATVI share price will decline in the short term but should still have long-term growth potential.
CD Projekt (OTGLY: OTC): CD Projekt, based in Poland, has had a tough time. However, the core franchises are looking stronger than ever. Possible acquisition candidate if current leadership can not execute.
Corsair (NASDAQ: CRSR): Corsair was one of many companies hammered by hardware issues and shortages. The hardware category is expected to rebound and Corsair has a premium brand.
Electronic Arts (NASDAQ: EA): Electronic Arts has shown a stellar performance moving from game publishing to more of a live services model. There is still room for growth with its major sports franchises. Additional shares were purchased on 3/22/23 with profits from selling Nvidia stock.
Konami (9766.T-JP: Tokyo) (KONMY: OTC): Konami is one of several Japanese companies that have a library of classic game IP that can be updated.
Nintendo (7974.T-JP: Tokyo) (NTDOY: OTC): Nintendo has focused on a mass game audience while competitors Sony and Microsoft have focused on the smaller premium audience. A new Nintendo system is expected to be announced in the next year so the stock is likely to see a boost. Additional shares were purchased on 3/22/23 with profits from selling Nvidia stock.
Paradox Interactive (PDX.ST) (PRXXF: OTC): Paradox Interactive is a small Swedish publisher that creates sophisticated PC games for a dedicated audience. Purchased 3/22/23 with profits from selling Nvidia stock.
Square Enix (9684.T-JP: Tokyo) (SQNNY: OTC): Square Enix is a Japanese company with some strong IP and decent live services. However, there is some concern that the company is investing too much into blockchain and NFT.
Turtle Beach (NASDAQ: HEAR): Turtle Beach is a hardware company that suffered from product shortages for the PlayStation 5 and Xbox Series X/S. As hardware issues ease the company should make a comeback.
Ubisoft (Ubi.PA) (UBSFY: OTC): Ubisoft stock has been battered because of product delays and poor performance. Ubisoft has struggled to go to a live service model and it has shown in the results. However, the company is likely to get back on track or be acquired for a premium over current prices.
DFC Intelligence Video Game Stock Portfolio
The DFC Intelligence Video Game Stock Portfolio was launched on January 3, 2023, with a hypothetical investment of $15,000 in companies DFC feels have both short-term growth potential and a solid long-term strategy. Stocks are sold and reinvested as market conditions warrant. NOTE: DFC does not underwrite or own the securities of the companies the analysts cover. Investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock and should consult a stock professional for their investment guidance.
UPDATE: April 3, 2023 sold Activision Blizzard stock at an 11% gain. We had always said we would sell ATVI when it hit $85 although we believe the Microsoft acquisition is likely to go through at a higher price. Proceeds were invested in Take-Two Interactive, a company that has some strong brands and is a potential acquisition candidate.
Proceeds were invested in
Take-Two Interactive (NASDAQ: TTWO) = $2,140
NOTE: To assess the true return of the $15,000 hypothetical investment one must adjust for stocks sold. The starting value of the investment should always be $15,000.
The Games and Network Services division of Sony Group (NYSE: SONY) reported a 61% year-to-year revenue increase for the fourth quarter ending 3/31/23. Game hardware revenue was up 180% as Sony sold 6.3 million PlayStation 5 systems. Network services revenue was up 14%, while software was up 11%.
Analysis
This was the news everyone was waiting for. After Microsof…..
For the first quarter of 2023 ending 3/31/23, Activision Blizzard (NASDAQ: ATVI) reported revenue increased 35% over the previous year to $2.38 billion. Net bookings were up 25% to $1.86 billion. Net income for the quarter was $740 million compared with $395 million for the first quarter of 2022.
In its financial release Activision commented on the U.K. CMA decision to block its acquisition by Microsoft. The company stated:
Activision Blizzard considers tha…..
On March 22, DFC Intelligence had the privilege to join a private analyst briefing with Nvidia CEO Jensen Huang. This was an opportunity to ask Huang detailed questions following his keynote at the Nvidia GTC conference the previous day.
The focus was almost entirely on Nvidia’s future in AI. The key takeaway from the keynote and briefing was that Nvidia is in the process of its most expansive growth of business model ever. That expansion is into AI which is hitting…..
Like many companies in the hardware sector, Corsair Gaming (NASDAQ: CRSR) had a tough 2022. From January 2022 to January 2023, Corsair stock was down 37% as revenue declined significantly.
There were many issues facing Corsair in the past year. This included high prices/GPU shortages slowing new PC builds, as well as economic conditions in Europe. However, the U.S. showed signs of making a comeback and a new genera…..
Activision Blizzard (NASDAQ: ATVI) was one of the strongest performers in the DFC Intelligence Video Game Stock Index for 2022. From January 2022 to January 2023, ATVI stock price increased 15% versus an average 30% decline in the index.Â
Of course, the reason for the increase was that Microsoft announced plans to buy Activision Blizz…..
Stock prices in the video game and interactive entertainment industry soared during COVID stay-at-home orders. In 2022, stock prices came down across the board. As the global economy heads towards a potential recession now is the time to evaluate company valuation. To track the overall video game industry, DFC has launched the DFC Intelligence Video Game Stock Index.
Introducing the Video G…..
These are the companies currently in the DFC Intelligence Video Game Stock Portfolio. The companies included are focused on software and services for the video game industry. There is a separate index for companies focused primarily on hardware.
Click on the company name for more detailed information.
The DFC Intelligence Video Game Stock Index started on January 3, 2023, with a hypothetical investment of $1,000 in each of the public companies DFC considers market leaders in the video game and interactive entertainment space. Stocks are sold and reinvested as market conditions warrant. NOTE: DFC does not underwrite or own the securities of the companies the analysts cover. Investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock and should consult a stock professional for their investment guidance.
Additional Public Game Companies
The following public companies are not currently included in the DFC Intelligence Video Game Stock Index but could be added in the future.
AfreecaTV (067160.KQ)
ASUStek (2357.TW)
Colopl Inc (3668.T-JP: Tokyo)
Com2Us (078340.KQ)
Dell Technologies (NYSE: DELL)
DeNA (2432.T-JP: Tokyo)
GameStop (NYSE: GME)
Gravity (NASDAQ: GRVY)
GungHo (3765.T-JP: Tokyo)
HP Inc (NYSE: HPQ)
Huya (NYSE: HUYA)
IGG (0799.HK)
Kadokawa Corporation (9468.T-JP: Tokyo)
Kingsoft (3888.HK)
Koei Tecmo (3635.T-JP: Tokyo)
Krafton (259960.KS)
Mixi (2121.T-JP: Tokyo)
Mobile Factory (3912.T-JP: Tokyo)
Modern Times Group (MTG-B.ST)
NCSoft (036570.KQ)
Netmarble (251270.KS)
Pearl Abyss (263750.KQ)
SciPlay (NASDAQ: SCPL)
Skillz (NYSE:SKLZ)
SoftBank Group (9984.T-JP: Tokyo)
Soho (0410.HK)
The9 (NASDAQ: NCTY)
Unity (NYSE: U)
Vivendi SE (VIV.PA)
DFC Intelligence Game Hardware Stock Index
The DFC Intelligence Game Hardware Stock Index focuses on companies whose primary business is providing hardware. More detailed info can be found in the hardware section or by clicking on the company name. Some hardware companies are included in the conglomerate category.
