What You Missed This Week in Video Games

Articles From: The Fly
Website: The Fly

 ‘Resident Evil 4’ remake out this week

“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.

NEW RELEASES: 

This week’s major release is Capcom’s (CCOEY) “Resident Evil 4” remake, which launched March 24 for PC, PlayStation 4 (SONY), PS5, and Xbox Series X/S (MSFT). The game is a full reimagining of the original 2005 release of the same name.

MICROSOFT/ACTIVISION: 

As the Microsoft-Activision Blizzard (ATVI) deal saga continues on, Microsoft president Brad Smith told the Wall Street Journal last week that the Xbox maker and Sony have not reached a formal agreement over Activision’s “Call of Duty” franchises are aren’t currently in talks on a potential deal. A day later, Microsoft Gaming chief Phil Spencer tweeted that Microsoft and cloud gaming provider Ubitus signed a 10-year partnership to stream Xbox PC Games as well as Activision Blizzard titles after the acquisition closes. The announcement followed similar deals with Boosteroid, Nvidia (NVDA), and Nintendo (NTDOY), The Fly notes.

Meanwhile, Reuters reported late last week that Microsoft offered remedies to the European Commission to achieve antitrust clearance for the deal. A later Reuters report, however, noted that the Xbox maker’s proposed remedies focus only on cloud gaming services, with no mention of Sony.

Additionally, the Financial Times reported this week that Microsoft is preparing to launch a new app store for iPhone and Android smartphone games as soon as next year if its acquisition of Activision Blizzard (ATVI) is cleared by regulators. New rules requiring Apple (AAPL) and Google (GOOGL) to allow app stores owned and operated by other companies are expected to come into effect in 2024 under the EU’s Digital Markets Act. “We want to be in a position to offer Xbox and content from both us and our third-party partners across any screen where somebody would want to play,” said Phil Spencer, chief executive of Microsoft Gaming, according to FT.

ROBLOX REVENUE: 

Last week, Roblox (RBLX) released certain key metrics for the month of February. Daily active users, or DAUs, were 67.3M, up 22% year-over-year. Hours engaged were 4.6B, up 24% year-over-year. Estimated revenue was between $214M and $217M, up 20%-22% year-over-year. Estimated bookings were between $243M and $247M, up 18%-19% year-over-year. Estimated average bookings per daily active user were between $3.61 and $3.67, a decline of between 2%-4% year-over-year.

Following the release, Morgan Stanley maintained an Underweight rating and $26 price target on Roblox, saying the company’s February results were in line with expectations on both bookings and daily active users while engagement was slightly below. The firm maintains a cautious outlook on the remainder of 2023 and sees near term upside more than fully priced at current share levels. Roblox’s current reacceleration will give way to a deceleration in the second half of the year as compares toughen considerably beginning in June, the firm told investors in a research note.

Click here to check out recent Media Buzz Sentiment on Roblox as measured by TipRanks.

  • Take-Two’s (TTWO) “WWE 2K23” surpassed Warner Bros. Discovery’s (WBD) “Hogwarts Legacy” as the U.K.’s best-selling physical video this past week, Gamesindustry.biz reports [read more]
  • Microsoft’s Mojang said that “Minecraft” is launching on Chromebook [read more]
  • Bethesda’s “Ghostwire: Tokyo” will launch on April 12 for Xbox Series X/S following a one-year console exclusivity deal with Sony [read more]
  • Universal’s (CMCSA) upcoming film “The Super Mario Bros. Movie” is tracking to gross $85M-$90M over its April 5-9 opening weekend, Deadline reports [read more]

Originally Posted March 21, 2023 – What You Missed This Week in Video Games

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