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.
In the recently launched DFC Intelligence Video Game Stock Index, Capcom (9697.T-JP: Tokyo) (OTC:CCOEY) was the top performer with a stock increase of 37% from January 2022 to January 2023. The overall DFC Intelligence Video Game Stock Index was down 30% in 2022.
In late October, Capcom announced a 30% decline in revenue for the first six months of the fisca…..
The Embracer Group continued to make some big acquisition moves in 2022. This included buying board game company Asmodee for $3 billion and getting the Eidos/Crystal Dynamic properties from Square Enix.
Unfortunately, Embracer’s biggest video game release of 2022, a remake of THQ’s Saints Row, was a disappointment. Overall Embracer Group stock was down 50% in 2022. This compares with an average decline of 30% for the DFC Intelligence Video Game Stock Index
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Hardware companies in the DFC Intelligence Video Game Stock Index were hammered in 2022 and Nvidia (NASDAQ: NVDA) was no exception. Nvidia stock was down 52% from January 2022 to January 2023. This was after a slight rally toward the end of the year.
The big growth area for Nvidia has been data centers. In the last quarter, Nvidia’s data center revenue was up 31% over the previous year quarter while ga…..
The stock price of hardware and accessories companies was hammered in 2022. Turtle Beach (NASDAQ: HEAR) was no exception as the stock price declined 68% from January 2022 to January 2023.
Going into 2023, DFC Intelligence is bullish on the category in general. As the installed base for PlayStation 5 and Xbox Series X/S catchup to demand it will naturally result in growth for the accessories side. Meanwhile, new graphics cards from Nvidia and AMD are resulting in new P…..
It is no secret that Ubisoft (UBI.PA) has had a rough few years. In 2022, the stock price was down almost 40%. However, the decline had started well before. Ubisoft’s market value has lost about 73% since its peak in mid-2018.
Ubisoft has quite a few projects in the works and they need them to do well. Skull & Bones is a much delayed game that is scheduled for release this March. Avatar: Frontiers of Pandora is an open-work game set in the universe o…..
In January 2022, Take-Two Interactive (NASDAQ: TTWO) announced one of the biggest game industry acquisitions ever with a $12+ billion purchase of mobile game provide Zynga. That news lasted for a week until it was overshadowed by Microsoft’s planned purchase of Activision Blizzard for $68 billion.
While the Microsoft/ATVI deal is struggling to get approval, the Take-Two/Zynga deal was easily completed in May. Now Take-Two is struggling with the difficult process of combin…..
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.
