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Videogame Stock Roundup: Sony PS4 Holiday Sales Hit 6.2M, Nintendo Displays Switch Accessories at CES
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Among the top stories this week, Sony Corp. announced that it has sold 6.2 million units of PS4 over the holiday season while Nintendo Co Ltd (NTDOY - Free Report) displayed new accessories for its console Switch at CES 2017.
Recap of the Developments
1.Yesterday, in a press release, Sony announced that it has sold over 6.2 million units of PS4 to customers worldwide during the 2016 holiday season, taking the total count of PS4 units sold to 53.4 million units. PS4 software sales were impressive too with 50.4 million copies (both digital and physical) sold as of Jan 1, 2017. Sony is facing troubles in a number of its business segments, but it has been leveraging its games business that has consistently performed well on robust sales of consoles. PS4 leads the way for Sony’s gaming division.
Last year, Sony launched two new versions of PS4 in a bid to maintain a competitive edge in the video games console market. PS4 is designed to support Sony's PlayStation VR virtual reality headset. Sony also unveiled a sleeker and more energy-efficient PS4 to replace the original fourth-generation PlayStation machine.Shares of Sony have grown over 21.54% compared with the Zacks Audio/video Home products industry’s gain of 17.44%.
Sony is also rapidly making inroads into the lucrative mobile gaming space. Reportedly, the company is planning to launch as many as six mobile games based on its popular PlayStation franchises. However, in the beginning, the availability of the games will be limited to Japan. Details of the rollout in other countries are not yet available. At present, Sony carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. At CES 2017, Nintendo showcased its accessories for the upcoming console, Switch, to be launched sometime this month. Per media reports, Nintendo unveiled a Switch Headset that has 40mm drivers and is easily foldable. Then, there is the Nintendo Switch Starter Kit that carries stuff like stereo ear buds, carry bag and screen protector. For NES Classic edition, Nintendo has launched Power Adaptor that “accepts the USB cord from the NES Classic console and allows users to draw power from any regular power outlet.” Nintendo is expected to deliver detailed presentation related to Switch on Jan 12. The company is hoping to turn its fortunes around with Switch. Nintendo’s gaming consoles 3DS and Wii U have been underperforming for quite some time and are losing ground to Sony’s PS4 and Microsoft’s (MSFT - Free Report) Xbox one. In fact, Wii U has been the company’s lowest selling gaming console.At present, Nintendo carries a Zacks Rank #5 (Strong Sell).
3. Meanwhile, Nintendo is planning to launch Super Mario Run soon on Android platform. The game is available on Alphabet’s (GOOGL - Free Report) Google Playstore for pre-registration. Though no official date has been confirmed but the opening of pre-registration indicates that the game is up for release soon, add media reports. On Dec 15, Nintendo released Super Mario Run for Apple Inc.’s (AAPL - Free Report) iOS platform for $9.99 across 151 countries. Shares of Nintendo have grown over 64.17% compared with the Zacks Toys/Games/Hobby products industry’s gain of 13.04%.
Performance
The following table shows the price movement of the major video game companies over both the past five trading days as well as the last six months:
Company
Last 5 Days
Last 6 Months
ATVI
3.95%
-5.50%
EA
-2.12%
4.05%
GLUU
3.45%
-7.89%
MSFT
-1.49%
21.75%
NTES
2.48%
22.68%
TTWO
-1.04%
29.79%
ZNGA
2.32%
0.00%
Over the last five trading sessions, Activision Blizzard was up 3.95% whereas Electronic Arts (EA - Free Report) was down 2.12%.
Over the last six-month period, Take Two (TTWO - Free Report) surged the most (29.79%). The company continues to benefit from its popular offerings like GrandTheft Auto V and Grand Theft Auto Online (though sales are slowing down), along with its other releases like NBA 2K17.In fact, higher sales of the digital version of the games add to the company’s margins. The company continues to expect growth in digital revenues driven by higher sale of full game downloads and increases in recurrent consumer spending.
Glu Mobile was down 7.89% over the same time frame due to the underperformance of most of its releases. Its weak third-quarter results were somehow overshadowed by the announcement of a new CEO and acquisition of a majority stake in CrowdStar. It recently acquired a mobile game developer, Plain Vanilla for $7.5 million.
Want to learn more about video game stocks? Make sure to check out our podcast below!
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Videogame Stock Roundup: Sony PS4 Holiday Sales Hit 6.2M, Nintendo Displays Switch Accessories at CES
Among the top stories this week, Sony Corp. announced that it has sold 6.2 million units of PS4 over the holiday season while Nintendo Co Ltd (NTDOY - Free Report) displayed new accessories for its console Switch at CES 2017.
Recap of the Developments
1.Yesterday, in a press release, Sony announced that it has sold over 6.2 million units of PS4 to customers worldwide during the 2016 holiday season, taking the total count of PS4 units sold to 53.4 million units. PS4 software sales were impressive too with 50.4 million copies (both digital and physical) sold as of Jan 1, 2017. Sony is facing troubles in a number of its business segments, but it has been leveraging its games business that has consistently performed well on robust sales of consoles. PS4 leads the way for Sony’s gaming division.
Last year, Sony launched two new versions of PS4 in a bid to maintain a competitive edge in the video games console market. PS4 is designed to support Sony's PlayStation VR virtual reality headset. Sony also unveiled a sleeker and more energy-efficient PS4 to replace the original fourth-generation PlayStation machine.Shares of Sony have grown over 21.54% compared with the Zacks Audio/video Home products industry’s gain of 17.44%.
Sony is also rapidly making inroads into the lucrative mobile gaming space. Reportedly, the company is planning to launch as many as six mobile games based on its popular PlayStation franchises. However, in the beginning, the availability of the games will be limited to Japan. Details of the rollout in other countries are not yet available. At present, Sony carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. At CES 2017, Nintendo showcased its accessories for the upcoming console, Switch, to be launched sometime this month. Per media reports, Nintendo unveiled a Switch Headset that has 40mm drivers and is easily foldable. Then, there is the Nintendo Switch Starter Kit that carries stuff like stereo ear buds, carry bag and screen protector. For NES Classic edition, Nintendo has launched Power Adaptor that “accepts the USB cord from the NES Classic console and allows users to draw power from any regular power outlet.” Nintendo is expected to deliver detailed presentation related to Switch on Jan 12. The company is hoping to turn its fortunes around with Switch. Nintendo’s gaming consoles 3DS and Wii U have been underperforming for quite some time and are losing ground to Sony’s PS4 and Microsoft’s (MSFT - Free Report) Xbox one. In fact, Wii U has been the company’s lowest selling gaming console.At present, Nintendo carries a Zacks Rank #5 (Strong Sell).
3. Meanwhile, Nintendo is planning to launch Super Mario Run soon on Android platform. The game is available on Alphabet’s (GOOGL - Free Report) Google Playstore for pre-registration. Though no official date has been confirmed but the opening of pre-registration indicates that the game is up for release soon, add media reports. On Dec 15, Nintendo released Super Mario Run for Apple Inc.’s (AAPL - Free Report) iOS platform for $9.99 across 151 countries. Shares of Nintendo have grown over 64.17% compared with the Zacks Toys/Games/Hobby products industry’s gain of 13.04%.
Performance
The following table shows the price movement of the major video game companies over both the past five trading days as well as the last six months:
Company
Last 5 Days
Last 6 Months
ATVI
3.95%
-5.50%
EA
-2.12%
4.05%
GLUU
3.45%
-7.89%
MSFT
-1.49%
21.75%
NTES
2.48%
22.68%
TTWO
-1.04%
29.79%
ZNGA
2.32%
0.00%
Over the last five trading sessions, Activision Blizzard was up 3.95% whereas Electronic Arts (EA - Free Report) was down 2.12%.
Over the last six-month period, Take Two (TTWO - Free Report) surged the most (29.79%). The company continues to benefit from its popular offerings like GrandTheft Auto V and Grand Theft Auto Online (though sales are slowing down), along with its other releases like NBA 2K17.In fact, higher sales of the digital version of the games add to the company’s margins. The company continues to expect growth in digital revenues driven by higher sale of full game downloads and increases in recurrent consumer spending.
Glu Mobile was down 7.89% over the same time frame due to the underperformance of most of its releases. Its weak third-quarter results were somehow overshadowed by the announcement of a new CEO and acquisition of a majority stake in CrowdStar. It recently acquired a mobile game developer, Plain Vanilla for $7.5 million.
Computer and Technology Sector 5YR % Return
Computer and Technology Sector 5YR % Return
Want to learn more about video game stocks? Make sure to check out our podcast below!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold.Be among the very first to see them >>