Games Day takes place on December 20, every year, and it celebrates all of our favorites. Over the years, games have come a long way; think of classic board games going online, like Chess.com. Well, with that trend in mind, let’s examine some of the companies that have been behind the digitization of gaming as we know it.
Nintendo (OTC: NTDOY) is known as one of the most innovative companies in the world — and rightly so — the company has navigated decades of disruptive technology in the gaming space and still maintained its relevancy. It pioneered the game console space and has launched a host of successful products over the years; the Gameboy, the Nintendo 64, the GameCube, the Wii, and even now, it continues to innovate with its popular Nintendo Switch product.
The company has over 250 million accounts worldwide and has sold over 90 million units of its latest Switch in the current console cycle, so it’s likely that we will see more impressive product lines down the road.
The iconic “E. A. Sports. It’s in the game” tagline always springs to mind whenever I think of this company. As a games publisher, Electronic Arts (NASDAQ: EA) has created a distinct lead over all other competitors in the sports game segment, even with a few others trying to take a piece of the market.
With titles such as ‘FIFA’, ‘Madden’, ‘UFC’, ‘NHL’, and ‘PGA Tour’, it is far and away the leader in its space. This library of games is being renewed each year provides a constant, reliable stream of revenue, with more gamers onboarded all the time. The vast network of loyal users makes it even more difficult for any other company to be a viable threat to EA’s business model, basically giving the company a monopolistic edge.
Similar to EA, Take-Two Interactive (NASDAQ: TTWO) has made it extremely difficult for all other game developers to replicate or develop better titles than its bestsellers, ‘Grand Theft Auto’ and ‘Red Dead Redemption’.
‘Grand Theft Auto V’ is the third best selling game of all time with over 150 million in sales, and its Red Dead title even made the top 10 too, booking more than 38 million copies sold. What’s admirable about the company is its unwavering dedication to the quality of these games, which contributes to returning customers year after year.
It’s important to note that with any of the above companies, the majority of revenue will be based on new releases which can tend to affect the financial results when viewing on a year-by-year basis. Any one major launch that was less successful than forecast could stem further issues as it can take so long to perfect the development of new products and games. But with that being said, there’s a strong record for consistency from all of the above, so it’s hard to see a big miss in any future releases.
Financial Writer at MyWallSt
David's favorite stock is Google. He's a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.