Gaming A Key Growth Engine For Big Tech

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Gaming A Key Growth Engine For Big Tech

seekingalpha2022-03-29

Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Video games are becoming one of the leading recreational activities globally. Unlike most other ...

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Unlike most other ...</p>\n\n<a href=\"https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaming A Key Growth Engine For Big Tech</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaming A Key Growth Engine For Big Tech\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-29 12:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Video games are becoming one of the leading recreational activities globally. Unlike most other ...</p>\n\n<a href=\"https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4503","symbol_name":"景林资产持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech","article_id":"2223081068","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2223081068","pubTimestamp":1648529334,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Vide","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4503":"景林资产持仓","03160":"华夏日股对冲","BK4122":"互联网与直销零售","BK4551":"寇图资本持仓","BK4547":"WSB热门概念","SONY":"索尼","BK4097":"系统软件","BK4561":"索罗斯持仓","BK4085":"互动家庭娱乐","BK4581":"高盛持仓","BK4504":"桥水持仓","BK4579":"人工智能","BK4078":"消费电子产品","BK4548":"巴美列捷福持仓","BK4514":"搜索引擎","U":"Unity Software Inc.","BK4565":"NFT概念","BK4539":"次新股","BK4528":"SaaS概念","BK4516":"特朗普概念","BK4023":"应用软件","BK4554":"元宇宙及AR概念","ZNGA":"Zynga","BK4532":"文艺复兴科技持仓","RBLX":"Roblox Corporation","TTWO":"Take-Two Interactive Software","BK4553":"喜马拉雅资本持仓","BK4571":"数字音乐概念","BK4567":"ESG概念","BK4507":"流媒体概念","BK4534":"瑞士信贷持仓","BK4576":"AR","APP":"AppLovin Corporation","BK4533":"AQR资本管理(全球第二大对冲基金)","AMZN":"亚马逊","MSFT":"微软","BK4525":"远程办公概念","BK4566":"资本集团","ATVI":"动视暴雪","BK4524":"宅经济概念","BK4535":"淡马锡持仓","BK4577":"网络游戏","BK4559":"巴菲特持仓","GOOG":"谷歌","BK4538":"云计算","BK4527":"明星科技股","BK4077":"互动媒体与服务","BK4550":"红杉资本持仓"},"translate_title":"游戏是大科技的关键增长引擎","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1,"ZNGA":1,"U":1,"TTWO":1,"SONY":1,"RBLX":1,"MSFT":1,"GOOG":1,"APP":1,"ATVI":1,"SNE":0.9,"03160":0.6},"content_text":"Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Video games are becoming one of the leading recreational activities globally. Unlike most other entertainment content, video games create a social and interactive experience that offer gamers a chance to compete and to cultivate their creativity. While the $180 billion industry has long been associated with young, male console owners, developments in the accessibility and nature of gaming has created a community that spans genders, income levels, ages and geographies. These developments have created a race among technology companies to acquire video game publishers and platforms. Earlier this year Sony (SONY) stated its intention to purchase game developer Bungie for an estimated $3.6 billion, Take-Two Interactive (TTWO) agreed to acquire mobile gaming company Zynga (ZNGA) in a transaction valued at approximately $12.7 billion and Microsoft (MSFT) announced its largest acquisition ever for Call of Duty (CoD) maker Activision Blizzard (ATVI) for $69 billion. Heightened deal activity reflects a wider shift in perception of the video game business by media and technology companies. Microsoft and Sony have recognized that the benefits of acquiring video game platforms and publishers extend beyond the revenues from an individual game title. Through such acquisitions they are endeavoring to create their own gaming ecosystems — virtual destinations where gamers can download and play games as well as access digital and streaming content to create a closed-loop digital entertainment destination. Innovations Open Gaming to All Innovations in mobile gaming, content development and connectivity are widening the total addressable market for gaming. One of the greatest catalysts for the growth of video games has been mobile gaming. The ability to extend gaming’s reach beyond the console has helped to accelerate the proliferation of gaming and engage demographics that previously would not consider themselves gamers. Additionally, the relatively low barriers to entry for the development of mobile games versus console games have helped mobile developers publish a wider range of games to attract and retain a greater audience. This has caused an explosion in the popularity of mobile games, which now make up over 50% of total video game industry revenues and total approximately $93 billion. The development of games specifically for mobile such as the widely popular Candy Crush or Fruit Ninja have garnered attention, and larger, well-established console-based franchises are taking note (Exhibit 1). The release of Activision Blizzard’s Call of Duty:Mobile in October 2019 was the first foray of a large console franchise into mobile gaming. CoD:Mobile turned out to be a huge success, with nearly 210 million active players and 30 million daily users. More surprisingly, it gained popularity beyond traditional gaming demographics. Exhibit 1: Mobile Has Major Growth Opportunities   Corporate Filings Content continues to be a critical driver in gamer engagement on all platforms. Demand is so high, in fact, that gaming platforms such as Roblox (RBLX), Unity (U) and AppLovin (APP) have opened their developer toolkits and encouraged users to use their platforms to develop and self-publish their own games and experiences. Since Roblox launched in 2006, its users have created over 40 million games, spawned 9.5 million individual game developers and approximately 202 million monthly active users. With 67% of Roblox users under the age of 16, the chance to make and share their own games has allowed these young developers to create content specifically geared to other pre-teens, generating greater engagement with this age demographic. Additionally, Roblox has achieved a much more balanced split across gender than traditional video games demographics. Gaming has also become a much more social activity through greater Internet access. No longer limited to the same console or geographic region, gamers are now able to collaborate and compete with other gamers across the globe. Companies have been quick to recognize heightened levels of competition drive gamer engagement and have been actively working to foster greater competition to extend game playability and monetization opportunities. New Game Designs Driving Industry Growth Video game publishers have also developed new monetization strategies. These include extending the life of their major titles and leveraging their existing fanbases by creating and selling new, downloadable content (\"DLC\") that offers add-ons, including exclusive character skins and levels. Mobile publishers have found new opportunities to increase revenue streams and player communities by developing “freemium” games, which include free-to-play games with the option to purchase premium content or include in-game advertisements. Freemium games not only offer prospective users free content to entice upgrades to premium services, but also create a steady revenue stream using in-game advertisements. Finally, the shift to mobile gaming and digital downloads has cut costs. While game development has traditionally incurred high up-front costs for the physical production of hardware such as CDs and retail costs of shelf space before a single copy is sold, direct-to-download has reduced or eliminated many of these initial rollout expenses, reducing overall development spending. Gaming Crucial for Next-Gen Digital Content While growth and increased monetization of games are viable investment catalysts, tech companies have also recognized that video games are crucial to the development of next-generation digital content. Heightened competition among gamers has boosted the attraction of esports as a viable entertainment medium. In May 2021, the Free Fire World Series featuring its mobile battle royale game was streamed by over 5.4 million viewers in 18 different languages. Sony has sought to incorporate esports into its PlayStation ecosystem by acquiring the world’s largest fighting game championship tournament, the EVO Championship series, in 2021 and filing a patent for an esports betting platform run through PlayStation. Combined with greater integration of video game streaming services such as Twitch and YouTube with Microsoft, Sony, Amazon (AMZN) and Google’s (GOOG) digital ecosystems, esports should continue to be a significant content driver for major tech companies. Video games’ role in the burgeoning metaverse offers even greater possibilities. Envisioned as a network of 3D, virtual worlds focused on social engagement, the metaverse offers participants the possibility of nearly endless digital environments in which to work, shop and engage. Gaming platforms such as Roblox already offer users the tools to construct their own games and serve as a microcosm of the larger digital ecosystems that tech companies are jockeying to build. As tech companies look for new ways to maximize their footprint in the metaverse, they will increasingly look to the resources and experience offered by traditional and emerging gaming companies (Exhibit 2). Exhibit 2: Growth Potential Outside Gaming is Growing   ClearBridge Investments, Unity Software SEC Form S-1 2020 and Applovin Corporation SEC Form S-1 2021. Driven by the explosion of mobile gaming and next-gen technologies supporting development of the metaverse, the video game industry offers one of the more attractive secular growth profiles in media and technology. Hilary Frisch, CFA is Senior Research Analyst for Information Technology at ClearBridge Investments.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9019112277,"gmtCreate":1648557907593,"gmtModify":1676534353542,"author":{"id":"4105938675549130","authorId":"4105938675549130","name":"Woolooloo","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"4105938675549130","authorIdStr":"4105938675549130"},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9019112277","repostId":2223081068,"repostType":2,"repost":{"id":"2223081068","kind":"news","pubTimestamp":1648529334,"share":"https://ttm.financial/m/news/2223081068?lang=&edition=fundamental","pubTime":"2022-03-29 12:48","market":"us","language":"en","title":"Gaming A Key Growth Engine For Big Tech","url":"https://stock-news.laohu8.com/highlight/detail?id=2223081068","media":"seekingalpha","summary":"Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Vide","content":"<html><body><p><figure><picture> <img height=\"1024px\" src=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w750\" srcset=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w1536 1536w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w1280 1280w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w1080 1080w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w750 750w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w640 640w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w480 480w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w320 320w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1296341945/image_1296341945.jpg?io=getty-c-w240 240w\" width=\"1536px\"/> </picture><figcaption> <p>Maskot/DigitalVision via Getty Images</p></figcaption></figure><em>By Hilary Frisch, CFA</em></p> <h4>Video Games Have Become Big Business</h4> <p>Video games are becoming <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the leading recreational activities globally. Unlike most other entertainment content, video games create a social and interactive experience that offer gamers a chance to compete and to cultivate their creativity. While the $180 billion industry has long been associated with young, male console owners, developments in the accessibility and nature of gaming has created a community that spans genders, income levels, ages and geographies. These developments have created a race among technology companies to acquire video game publishers and platforms. Earlier this year Sony (SONY) stated its intention to purchase game developer Bungie for an estimated $3.6 billion, Take-<a href=\"https://laohu8.com/S/TWOA.U\">Two</a> Interactive (TTWO) agreed to acquire mobile gaming company <a href=\"https://laohu8.com/S/ZNGA\">Zynga</a> (ZNGA) in a transaction valued at approximately $12.7 billion and Microsoft (MSFT) announced its largest acquisition ever for Call of Duty (CoD) maker Activision Blizzard (ATVI) for $69 billion.</p><div></div> <p>Heightened deal activity reflects a wider shift in perception of the video game business by media and technology companies. Microsoft and Sony have recognized that the benefits of acquiring video game platforms and publishers extend beyond the revenues from an individual game title. Through such acquisitions they are endeavoring to create their own gaming ecosystems — virtual destinations where gamers can download and play games as well as access digital and streaming content to create a closed-loop digital entertainment destination.</p> <h4>Innovations Open Gaming to All</h4> <p>Innovations in mobile gaming, content development and connectivity are widening the total addressable market for gaming. One of the greatest catalysts for the growth of video games has been mobile gaming. The ability to extend gaming’s reach beyond the console has helped to accelerate the proliferation of gaming and engage demographics that previously would not consider themselves gamers. Additionally, the relatively low barriers to entry for the development of mobile games versus console games have helped mobile developers publish a wider range of games to attract and retain a greater audience. This has caused an explosion in the popularity of mobile games, which now make up over 50% of total video game industry revenues and total approximately $93 billion.</p> <p>The development of games specifically for mobile such as the widely popular Candy Crush or Fruit Ninja have garnered attention, and larger, well-established console-based franchises are taking note (Exhibit 1). The release of Activision Blizzard’s Call of Duty:Mobile in October 2019 was the first foray of a large console franchise into mobile gaming. CoD:Mobile turned out to be a huge success, with nearly 210 million active players and 30 million daily users. More surprisingly, it gained popularity beyond traditional gaming demographics.</p> <p><em>Exhibit 1: Mobile Has Major Growth Opportunities</em></p> <p><figure><picture> <span><img height=\"321\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2022/3/28/32145735-16484828909574523.png\" width=\"640\"/></span> </picture><figcaption><p><span>Corporate Filings</span></p></figcaption></figure></p><div></div> <p>Content continues to be a critical driver in gamer engagement on all platforms. Demand is so high, in fact, that gaming platforms such as Roblox (RBLX), Unity (U) and AppLovin (APP) have opened their developer toolkits and encouraged users to use their platforms to develop and self-publish their own games and experiences. Since Roblox launched in 2006, its users have created over 40 million games, spawned 9.5 million individual game developers and approximately 202 million monthly active users. With 67% of Roblox users under the age of 16, the chance to make and share their own games has allowed these young developers to create content specifically geared to other pre-teens, generating greater engagement with this age demographic. Additionally, Roblox has achieved a much more balanced split across gender than traditional video games demographics.</p> <p>Gaming has also become a much more social activity through greater Internet access. No longer limited to the same console or geographic region, gamers are now able to collaborate and compete with other gamers across the globe. Companies have been quick to recognize heightened levels of competition drive gamer engagement and have been actively working to foster greater competition to extend game playability and monetization opportunities.</p> <h4>New Game Designs Driving Industry Growth</h4> <p>Video game publishers have also developed new monetization strategies. These include extending the life of their major titles and leveraging their existing fanbases by creating and selling new, downloadable content (\"DLC\") that offers add-ons, including exclusive character skins and levels. Mobile publishers have found new opportunities to increase revenue streams and player communities by developing “freemium” games, which include free-to-play games with the option to purchase premium content or include in-game advertisements. Freemium games not only offer prospective users free content to entice upgrades to premium services, but also create a steady revenue stream using in-game advertisements.</p> <p>Finally, the shift to mobile gaming and digital downloads has cut costs. While game development has traditionally incurred high up-front costs for the physical production of hardware such as CDs and retail costs of shelf space before a single copy is sold, direct-to-download has reduced or eliminated many of these initial rollout expenses, reducing overall development spending.</p> <h4>Gaming Crucial for Next-Gen Digital Content</h4> <p>While growth and increased monetization of games are viable investment catalysts, tech companies have also recognized that video games are crucial to the development of next-generation digital content.</p><div></div> <p>Heightened competition among gamers has boosted the attraction of esports as a viable entertainment medium. In May 2021, the Free Fire World Series featuring its mobile battle royale game was streamed by over 5.4 million viewers in 18 different languages. Sony has sought to incorporate esports into its PlayStation ecosystem by acquiring the world’s largest fighting game championship tournament, the EVO Championship series, in 2021 and filing a patent for an esports betting platform run through PlayStation. Combined with greater integration of video game streaming services such as Twitch and YouTube with Microsoft, Sony, Amazon (AMZN) and Google’s (GOOG) digital ecosystems, esports should continue to be a significant content driver for major tech companies.</p> <p>Video games’ role in the burgeoning metaverse offers even greater possibilities. Envisioned as a network of 3D, virtual worlds focused on social engagement, the metaverse offers participants the possibility of nearly endless digital environments in which to work, shop and engage. Gaming platforms such as Roblox already offer users the tools to construct their own games and serve as a microcosm of the larger digital ecosystems that tech companies are jockeying to build. As tech companies look for new ways to maximize their footprint in the metaverse, they will increasingly look to the resources and experience offered by traditional and emerging gaming companies (Exhibit 2).</p> <p><em>Exhibit 2: Growth Potential Outside Gaming is Growing</em></p> <p><figure><picture> <span><img loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2022/3/28/32145735-16484827749836586.png\"/></span> </picture><figcaption><p><span>ClearBridge Investments, Unity Software SEC Form S-1 2020 and Applovin Corporation SEC Form S-1 2021.</span></p></figcaption></figure></p> <p>Driven by the explosion of mobile gaming and next-gen technologies supporting development of the metaverse, the video game industry offers one of the more attractive secular growth profiles in media and technology.</p> <p><em>Hilary Frisch, CFA is Senior Research Analyst for Information Technology at ClearBridge Investments.</em></p>\n</body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaming A Key Growth Engine For Big Tech</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaming A Key Growth Engine For Big Tech\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-29 12:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Video games are becoming one of the leading recreational activities globally. Unlike most other ...</p>\n\n<a href=\"https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4577":"网络游戏","BK4538":"云计算","ZNGA":"Zynga","BK4559":"巴菲特持仓","BK4527":"明星科技股","BK4077":"互动媒体与服务","BK4579":"人工智能","BK4550":"红杉资本持仓","BK4503":"景林资产持仓","BK4535":"淡马锡持仓","BK4122":"互联网与直销零售","APP":"AppLovin Corporation","BK4551":"寇图资本持仓","MSFT":"微软","BK4547":"WSB热门概念","AMZN":"亚马逊","BK4561":"索罗斯持仓","BK4097":"系统软件","BK4581":"高盛持仓","ATVI":"动视暴雪","GOOG":"谷歌","BK4078":"消费电子产品","BK4504":"桥水持仓","BK4085":"互动家庭娱乐","SONY":"索尼","03160":"华夏日股对冲","BK4548":"巴美列捷福持仓","BK4514":"搜索引擎","BK4565":"NFT概念","BK4528":"SaaS概念","BK4516":"特朗普概念","BK4023":"应用软件","BK4539":"次新股","U":"Unity Software Inc.","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","BK4553":"喜马拉雅资本持仓","BK4571":"数字音乐概念","BK4567":"ESG概念","BK4507":"流媒体概念","BK4534":"瑞士信贷持仓","BK4576":"AR","BK4533":"AQR资本管理(全球第二大对冲基金)","TTWO":"Take-Two Interactive Software","BK4566":"资本集团","BK4525":"远程办公概念","RBLX":"Roblox Corporation","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4498264-gaming-key-growth-engine-for-big-tech","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2223081068","content_text":"Maskot/DigitalVision via Getty ImagesBy Hilary Frisch, CFA Video Games Have Become Big Business Video games are becoming one of the leading recreational activities globally. Unlike most other entertainment content, video games create a social and interactive experience that offer gamers a chance to compete and to cultivate their creativity. While the $180 billion industry has long been associated with young, male console owners, developments in the accessibility and nature of gaming has created a community that spans genders, income levels, ages and geographies. These developments have created a race among technology companies to acquire video game publishers and platforms. Earlier this year Sony (SONY) stated its intention to purchase game developer Bungie for an estimated $3.6 billion, Take-Two Interactive (TTWO) agreed to acquire mobile gaming company Zynga (ZNGA) in a transaction valued at approximately $12.7 billion and Microsoft (MSFT) announced its largest acquisition ever for Call of Duty (CoD) maker Activision Blizzard (ATVI) for $69 billion. Heightened deal activity reflects a wider shift in perception of the video game business by media and technology companies. Microsoft and Sony have recognized that the benefits of acquiring video game platforms and publishers extend beyond the revenues from an individual game title. Through such acquisitions they are endeavoring to create their own gaming ecosystems — virtual destinations where gamers can download and play games as well as access digital and streaming content to create a closed-loop digital entertainment destination. Innovations Open Gaming to All Innovations in mobile gaming, content development and connectivity are widening the total addressable market for gaming. One of the greatest catalysts for the growth of video games has been mobile gaming. The ability to extend gaming’s reach beyond the console has helped to accelerate the proliferation of gaming and engage demographics that previously would not consider themselves gamers. Additionally, the relatively low barriers to entry for the development of mobile games versus console games have helped mobile developers publish a wider range of games to attract and retain a greater audience. This has caused an explosion in the popularity of mobile games, which now make up over 50% of total video game industry revenues and total approximately $93 billion. The development of games specifically for mobile such as the widely popular Candy Crush or Fruit Ninja have garnered attention, and larger, well-established console-based franchises are taking note (Exhibit 1). The release of Activision Blizzard’s Call of Duty:Mobile in October 2019 was the first foray of a large console franchise into mobile gaming. CoD:Mobile turned out to be a huge success, with nearly 210 million active players and 30 million daily users. More surprisingly, it gained popularity beyond traditional gaming demographics. Exhibit 1: Mobile Has Major Growth Opportunities   Corporate Filings Content continues to be a critical driver in gamer engagement on all platforms. Demand is so high, in fact, that gaming platforms such as Roblox (RBLX), Unity (U) and AppLovin (APP) have opened their developer toolkits and encouraged users to use their platforms to develop and self-publish their own games and experiences. Since Roblox launched in 2006, its users have created over 40 million games, spawned 9.5 million individual game developers and approximately 202 million monthly active users. With 67% of Roblox users under the age of 16, the chance to make and share their own games has allowed these young developers to create content specifically geared to other pre-teens, generating greater engagement with this age demographic. Additionally, Roblox has achieved a much more balanced split across gender than traditional video games demographics. Gaming has also become a much more social activity through greater Internet access. No longer limited to the same console or geographic region, gamers are now able to collaborate and compete with other gamers across the globe. Companies have been quick to recognize heightened levels of competition drive gamer engagement and have been actively working to foster greater competition to extend game playability and monetization opportunities. New Game Designs Driving Industry Growth Video game publishers have also developed new monetization strategies. These include extending the life of their major titles and leveraging their existing fanbases by creating and selling new, downloadable content (\"DLC\") that offers add-ons, including exclusive character skins and levels. Mobile publishers have found new opportunities to increase revenue streams and player communities by developing “freemium” games, which include free-to-play games with the option to purchase premium content or include in-game advertisements. Freemium games not only offer prospective users free content to entice upgrades to premium services, but also create a steady revenue stream using in-game advertisements. Finally, the shift to mobile gaming and digital downloads has cut costs. While game development has traditionally incurred high up-front costs for the physical production of hardware such as CDs and retail costs of shelf space before a single copy is sold, direct-to-download has reduced or eliminated many of these initial rollout expenses, reducing overall development spending. Gaming Crucial for Next-Gen Digital Content While growth and increased monetization of games are viable investment catalysts, tech companies have also recognized that video games are crucial to the development of next-generation digital content. Heightened competition among gamers has boosted the attraction of esports as a viable entertainment medium. In May 2021, the Free Fire World Series featuring its mobile battle royale game was streamed by over 5.4 million viewers in 18 different languages. Sony has sought to incorporate esports into its PlayStation ecosystem by acquiring the world’s largest fighting game championship tournament, the EVO Championship series, in 2021 and filing a patent for an esports betting platform run through PlayStation. Combined with greater integration of video game streaming services such as Twitch and YouTube with Microsoft, Sony, Amazon (AMZN) and Google’s (GOOG) digital ecosystems, esports should continue to be a significant content driver for major tech companies. Video games’ role in the burgeoning metaverse offers even greater possibilities. Envisioned as a network of 3D, virtual worlds focused on social engagement, the metaverse offers participants the possibility of nearly endless digital environments in which to work, shop and engage. Gaming platforms such as Roblox already offer users the tools to construct their own games and serve as a microcosm of the larger digital ecosystems that tech companies are jockeying to build. As tech companies look for new ways to maximize their footprint in the metaverse, they will increasingly look to the resources and experience offered by traditional and emerging gaming companies (Exhibit 2). Exhibit 2: Growth Potential Outside Gaming is Growing   ClearBridge Investments, Unity Software SEC Form S-1 2020 and Applovin Corporation SEC Form S-1 2021. Driven by the explosion of mobile gaming and next-gen technologies supporting development of the metaverse, the video game industry offers one of the more attractive secular growth profiles in media and technology. Hilary Frisch, CFA is Senior Research Analyst for Information Technology at ClearBridge Investments.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":6,"commentSize":1,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}