NEW YORK, NY--(Marketwire -04/06/12)- The video game industry has shifted from one dependent on the sale of packaged goods and perpetual licensing, to one dominated by digital distribution. As result traditional video game companies are finding it harder to monetize the industry. Five Star Equities examines the outlook for companies in the Video Game Industry and provides equity research on Activision Blizzard, Inc. (NASDAQ: ATVI - News) and THQ Inc. (NASDAQ: THQI - News).
Access to the full company reports can be found at:
Consumers have taken gaming to their smartphones and tablets, where games are priced under $5 while console games still range from $30 to $60. As a result video game sales in the U.S. have dropped drastically. The NPD Group, a market research group, says U.S. video game sales fell 20 percent for the month of February. Sales totaled $1.06 billion for the month of February compared to $1.33 billion in 2011. Software totals showed a 23 percent decrease to $464.4 million, and hardware totals fell 18 percent to $381.4 million.
Five Star Equities releases regular market updates on the Video Game Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters.
Activision Blizzard, Inc. recently announced that Microsoft veteran Dennis Durkin has been named Chief Financial Officer. Durkin, 41, has been at Microsoft since 1999, most recently as Corporate Vice President, Chief Operating and Financial Officer of Microsoft's Interactive Entertainment Business (IEB), which includes Xbox. During his nearly six year tenure in IEB, he was a member of the IEB's leadership team, which is credited with turning the business from a significant operating loss to greater than $1 billion in annual profit, while establishing Xbox 360 as the #1 console globally in 2011.
THQ Inc. recently announced its updated business strategy to exit the traditional kids' licensed video game category and focus on its core game franchises and digital initiatives. As part of this business realignment, the company is implementing plans to streamline its organization and cost structure to support what will be a smaller company positioned for sustained profitability. The company currently expects these actions will result in a reduction of selling, general and administrative expenses and product development expenditures totaling approximately $160 million from its annualized run rate.
Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.fivestarequities.com/disclaimer
- video game industry
Five Star Equities