4 Narrow-Moat Video Game Publishers to Watch
Though they're all richly priced today, these firms stand to benefit from the trend of watching video games, the rise of e-sports, and the increasing use of microtransactions.
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Mentioned: Ubisoft Entertainment (UBI)
, Ubisoft Entertainment (UBSFY)
, Electronic Arts Inc (EA)
, Activision Blizzard Inc (ATVI)
, Take-Two Interactive Software Inc (TTWO)
Neil Macker: We recently completed a deep dive into the video game landscape, looking at the evolution of the video game experience. Video games have shifted from having a largely participatory user base to one that is increasingly split between players and watchers over the last 10 years. We focused on three areas: the impact of watching games on YouTube and Twitch, the rise of e-sports, and the increasing use of microtransactions in PC and console games.
Although watching video games takes time away from those playing video games, we project that the shift is still a net positive to specific genres as well as video game publishers like Activision Blizzard, EA, Ubisoft, and Take-Two.
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Neil Macker does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.