Wedbush optimistic on game developers revenue despite recession fears

Corsair Gaming

06/07/2022 16:46

** Brokerage Wedbush says there is potential for companies
with a large portion of revenue tied to mobile games to deliver
positive surprises during upcoming quarter
    ** Video and mobile games have historically been recession
resistant, largely due to value per dollar spent and relatively
low cost of games - brokerage
    ** While recession and inflation fears will likely cause a
reduction in spending, Wedbush believes amounts spent on games
are so small that any declines in player confidence in the
economy will be more than offset by increased focus on
entertainment value of games
    ** Mobile publishers in particular are positioned for upside
surprises when game publishers report in-app purchases next
month, Wedbush says, adding Playtika  PLTK.O , SciPlay  SCPL.O 
and Take-Two  TTWO.O  in focus
    ** Advertising may be a partial offset to summer sales, with
recessionary pressure impacting consumer spending and limiting
advertiser demand - brokerage
    ** Wedbush says companies most exposed to decline in ad
demand are ironSource  IS.N , Unity  U.N , Take-Two  TTWO.O  and
Activsion Blizzard  ATVI.O 
    ** Activsion, Corsair Gaming  CRSR.O , Electronic Arts
 EA.O , Turtle Beach  HEAR.O , ironSource, Microsoft  MSFT.O ,
SciPlay  SCPL.O , Skillz  SKLZ.N , Take-Two expected to
outperform, according to brokerage

 (Reporting by Shreyaa Narayanan in Bengaluru)
 ((Shreyaa.Narayanan@thomsonreuters.com))