Console and PC Revenue to Drop 12% in 5 Years, Mobile Gaming to Grow
by William D'Angelo
Console and PC gaming revenue is expected to decrease by 12 percent by 2019. This is due to the growth in mobile gaming, which is expected to erode into other sectors of gaming. Console and PC gaming revenue will decline from $46.5 billion in 2014 to $41 billion in 2019, according to Juniper Research.
Even though console and PC gaming is expected to decline, it will remain above 50 percent of all gaming recenue. PC sales are also expected to be bigger than console by 2019. This is because of the success of MOBA games, such as League of Legends and Dota 2.
The PlayStation 4 and Xbox One will provide a short term boost to the console industry, however sales are expected to slow in the future. The next Xbox and PlayStation are expected to be released in 2019.
I hope it's not just our inside circle of "old timers" who are buying MCZ shares these days. We need some new folks to see the potential here and start accumulating. Let's hope the Needham conference accomplishes that!
MCZ's recent internet sales overseer should be made aware that MCZ products aren't listed on the Nvidia site. No excuse for those kinds of omissions.
214k shares is HUGE volume for this stock, and it seems to be due to somebody sitting around the $2.50 mark sucking up the sell orders. I think the bottom was put in here the day after earnings.
Sounds like good news for the C.T.L.R.r and possibly the M.O.J.O as well. I wonder if we'll see a MOJO with a K1 for the 2014 holiday season.
Amen a8bil! bfrnk provides the very reason why revenue has been flat for the two years, yet doesn't seem to make the connection that that is the very same reason why revenue is likely to climb quickly at some point in the near future.
price is back up to $199. Still $149 at Amazon however. The review count at Amazon has ticked up ever so slightly as well, currently at 35. Gameshark has the CTRLr at $39.
In Gates defense, his forecasts are only as reliable as his customers forecasts, and I doubt he has unfettered visibility into their individual inventory/demand situations. This is all felling very 2011 ish to me. The Japanese Tsunami early that year disrupted supply chains and pushed everything back a bit, but when the business eventually came, KTCC went from $4 to over $12 pretty darn quick. Those who took advantage and built a position did very well.
A pre-release similar to the KTCC's is also a possibility. One downside to an early earnings release is that we'll not get the same 1st quarter visibility that we normally get.
Everything you stated sounds more than reasonable to me Hopeful. We should certainly know very soon if MCZ intends an early earnings release.
Overall, I liked everything I heard, both in terms of 1q15 earnings outlook, and the CDR acquisition.
An interesting aside is that KTCC is currently selling at an Sales/Price ratio of $305M/$111M or 2.75. Inverting that to obtain a P/S ratio gives .364. CDR, based on approximate revs of $120M, has been valued at $46.9M, which gives a P/S ratio of .391. Hopefully, should the merger take place, all other things being equal, KTCC shares will get the markup vs CDR getting the markdown.
Based on the answers given to questions asked by Mr. Dezellem (Man! I whish every stock I owned had a guy like him on the calls, and that every CEO was as frank and forthright as Mr. Gates appears to be!), the two programs causing the 4q14 miss, should make their contributions to 1q15 instead. Also, should the acquisition take place, Mr. Gates as much as said that increased economies of scale should reduce COGS. The resulting savings could either increase gross margin, or be passed along to the customer. The potential to increase the amount of work performed per end product beyond what CDR currently performs sounds very likely. The potential to increase the amount of business done with CDR's customers on entirely different end products sounds likely as well.
Bottom line, I feel good about the prospects here. The current share price reflects none of the potential here IMO.
That's not an entirely accurate statement (although shrinking revenues certainly help make that case). KTCC seems to be buying "capability" vs buying "customer lists". At some revenue level, they'd have to increase their capacity/capability either organically or via acquisition to grow anyway. Could be that the acquisition route is the most cost effective.
Good grief. Read the filings. It has to do with the payment arrangement made with the Tritton folks. It's a non-event.
along with WDC and HTCH. Ultimately, I believe spinning drives will disappear, but that's not to say that there isn't still a lot of money to be made before that happens. The analogy that immediately springs to mind is what happened to video rental stores in the early 2000's as broad band became inexpensive and increasingly available. Movie Gallery went from under $1 to near $40 before eventually going bankrupt (mainly due to a horrendously timed acquisition saddled them with a huge debt burden).
Unlikely that anybody using dark pools to match trades is doing so in the micro cap space. LTF likely has to accumulate and distribute his positions in small lots over time just as the rest of us do. The quants/bots/algos actually do us a favor in those instances as they add liquidity to otherwise illiquid markets.