Star, you have to admit, it's nice to be on the winning side. EA is also doing nicely. I think the next move may come from Tencent or BABA. (Although BABA is facing some legal problems.) Perhaps Tencent will take advantage of BABA troubles.
I agree celeb games don't need marketing. However, that wasn't my point. It is the rest of Glu's portfolio that could use some promoting. And Glu as a whole needs to promote itself. Again, I don't know why they didn't do anything when they had that "meet Kim K." contest. I am also concerned with how well celeb games will hold the player's attention. Deer Hunter, Tap, Dash have an audience and cost less to produce. Candy Crush Saga still has a huge following and it is absolutely mind numbing. But what a revenue. And you're right about slow loading times. Can't have that in today's hurry up world.
BTW, ATVI has a huge hit on its hands with Overwatch. Star.trader has been following it and his excitement made me laugh with today's post. So glad I took a position. They're calling for a high of $42, but I believe it will push way past that.
afd046, I like this idea. I think it would appeal to a lot of players. Hope Glu is listening.
I've been following Glu for the past 4 or 5 years. Up until recently I've enjoyed buying and selling the ups and downs. I've liken it to skiing the black diamonds. Once you find the rhythm, the groove, it becomes nothing but fun. My last substantial move was back in 2015. I basically sold off about 40% of my holdings between May and July. Since then I feel I have become more of an observer than a trader. I truly believed 2016 would be the pivotal point.
I was impressed with the notion of celeb games. KKH was an amazing debut. But, I have always believed in games that were simple to create and brought in a steady income. When KPP failed, and failed big time, that was the wake up call. The first most important thing Glu was obligated to do was to release games "bug free." No excuses. No bugs. Personally I don't care how delayed a game might be, just get the bugs out. How many other game companies have released games with bugs? And as great the potential celeb games are, they should not be the main focus for income.
As for WeFire, I thought in his last CC de Masi said shooter games were beginning to trail off. That they would move them to one signal platform. that Glu would focus on games developed for females. I think there is plenty of a market for shooter games. ATVI and EA are making serious cash with them. I believe WeFire will be successful. But again, so long as it is bug free.
Last, I've harped on this before; Glu needs to step up its marketing to the general public. There are more and more mobile games being released each day. Glu is becoming a face in the crowd.
I haven't given up hope. I think de Masi is an intelligent man and has done well navigating Glu through the uncharted waters of mobile games. I am willing to ride this out for another 12 months.
Something I've been wondering about and would like to hear opinions.
It seems the majority of games Glu releases fall in the middle of a quarter or 2/3 into the quarter. For example, BS is released 6 weeks from the end of Q2. It gives little time for a new game to had to revenues. The same with the Jenners. I'll grant you, other companies will occasionally drop in the middle. ATVI just released Overwatch last night with a HUGE demand. Of course, unlike Glu, ATVI promoted the heck out of it. Still, is there some type of strategy to this? Why is it better to release a game near the end of a quarter then the beginning? And I'm pretty sure they're not dropping the moment the game gets an OK. I think the release is deliberate.
Star, it looks like the launch will be this evening. Blizzard has done a heck of a job promoting this thing. We should see a good pop in the coming days. And then June 10th. Warcraft movie. And we should see another pop. Yes, the fun begins!
Softbank owns 73% of Supercell. They are selling most if not all to Tencent. Keep in mind, in recent years Tencent has been buying stakes in game companies like Glu and ATVI. However, I do not have the impression Tencent has a want or need to buy companies completely. They seem to simply want a control position. They want companies in the west to distribute their games, as well as bringing western games to China. As a foot note, Alibaba is not sitting idly by. In 2014 they dropped $120 million on game developer Kabam, based in SF. to have Lord of the Rings brought to China.
As I have mentioned previously, this is the year we will see consolidation in the gaming sector. Companies like Tencent and BABA, along with others, are buying stakes in smaller companies for two reasons: to trade games in the east and west, and, more importantly, to keep their competitors out. Tencent might own 25% of Glu, but that's enough to make BABA look elsewhere. I don't see the need for the big boys to buyout a company like Glu when a solid investment will suffice.
Not sure what's been wrong with my brain lately. Just Googled Warcraft action figures and a good selection came up. Many locations. I imagine they will sell well starting June 11. $19 bil is quite a number for plastic figures. I see SWIR keeps moving up. Glad I hold a few. Wish I had added.
1Q16 revenues $1.5 billion. Digital revenues accounted for 64% of total revenue, or $926 million. The purchase of King was brilliant. This has already stimulated more revenues and I expect digital revenues will only grow. The question is: by how much each quarter, how quickly? The purchase of King certainly gives an edge over EA, but both companies advance with confidence and determination. Have to wonder if EA is eyeing an online company to enhance its growth. These are, my friends, exciting times.
Have to think Blizzard is anticipating a huge surge when it drops. By pre-selling they hope to dilute some of the demand. As excited as I am about the reception for Overwatch I am concerned with how well the servers can handle the load. I'm sure Blizzard is well prepared. In less than a week we will know.
Action toys from movie tie-ins is up 7% this year, or $19 billion in revenues. I don't know if the video games are pushing action toys, but if not, they need to get going. And I don't mean a gentle roll-out of a couple. I mean they need to compete with other action toys. $19 billion is no small piece of change.
Just read that EA "destroyed" ATVI on You Tube. Battlefield 1 has received the most likes ever on You tube for a vid game with 1.57 likes. And Call of Duty Infinite Warfare is the second most disliked vid ever on You Tube. 2.23 Million dislike, just behind Bieber's "Baby." This could be a whole lot different once the games get released in the fall.
Tencent bought a stake in ATVI. I'm sure they will help ATVI maneuver the Asian market. And keep in mind, ATVI has a half billion monthly players now. With the Asian market that could be about one billion players every month. Yikes!
Ugh, gumby, finally found the $4 bil. Both Morningstar and Marketwatch have stories. It's amazing. They have raised nearly $11 bil and now with a separate project they seek up to $4 bil. BTW, Tencent is valued at $200 bil.
Also have learned both Tencent and Alibaba plan to drop some serious cash this summer. Not just in tech or games.
I'm not sure I understand what CNBC is reporting. The last I read Tencent was putting together $11 billion for acquisitions and was very close to having that. Perhaps they need only $4 bil more. But again, I was under the impression they were nearly done. I'm not sure there would be a benefit to buying out Glu. The stake they have gives them pretty much everything they need. I liken Tencent to an octopus, tentacles reaching out in many directions, into many companies. I am curious what Tencent plans to buy with that cash. We will know soon enough.
ATVI Media Networks Announces Esports Broadcast Networks.
Steve Bornstein, Chairman of ABMN and former CEO of ESPN, said, "We're building a network dedicated to the thrill of competition and the passion of the fans." He went on to say, "Esports is a cultural phenomenon at its tipping point."
Folks, as far as ATVI is concerned, life is good and only getting better.
Open beta ran for just under a week, but it drew in 9.7 million players. On average each player clocked in around 8 hours of play time. These number elevates Overwatch to Blizzard's biggest open beta yet! In ten days we are going to see some absolutely crazy numbers. It is my hope the system is not so overwhelmed that it crashes.
Add to this , Activision is coming down hard on cheats: Banning them. Permanently. No 3 strikes rules. No cool down. Just an outright permaban. This, of course, will be well received. Tuesday the 24th is just around the corner. Mark your calendars.