Overall economic indicators suggest that consumer spending, especially in the US, is headed to a slowdown. Following the tax breaks earlier in the year, overall spending surprised even the retailers. But that party is going to end soon. Finally, as gaming has become mainstream its underlying economics have shifted. In broad terms this means that where previously the games industry may have seemed “counter-cyclical” it is going to follow suit with whatever happens to consumer spending at large. In addition, investors have become more savvy and are starting to trade aggressively against game stocks. This means game companies are less inclined t内蒙古专治癫痫病的医院o take risks on content innovation (as in the case of EA).
The long-term silver lining here is that this imminent stagnation is the precursor of the industry’s overall transition. But before Spring comes Winter.
Live-streamers and influencers embark on a drama binge
Yes, newfound fame will get the better of them and stupid things will be said. This is still the very first generation that suddenly finds itself thrust into the mainstream spotlight―they don’t have the benefit of the intense vetting that other industries have subjected their rising stars to before sending them on the main stage. With many still amateurs and competing against one another to win the favor of audiences and 癫痫病专治的正规医院aggregators alike, the stakes are substantially higher.
In their hunger for attention aspiring streamers will sacrifice their authenticity and some will undoubtedly ruin their careers before it even starts. Mounting pressures from growing competition will drive this new generation of tastemakers to ‘keep it real’ and remain authentic. Twitch and YouTube will do what they can, I’m sure. But for many, this authenticity will be too much.
Electronic Arts takes a hit in 2019
Among the Big Three, Electronic Arts will have the toughest year. Despite its aggressive expansion effort illustrated by the acquisition of GameFly’s streaming division, EA is going to face the music with investors. T重庆靠谱的癫痫病治疗医院在哪his is somewhat undeserved because financial investors insist on continual growth and generally can’t see past the next quarter.
And, to be fair, EA has a few weaknesses: its revenue and, in particular, its margin area highly dependent on the continuing success of FIFA Ultimate Team. In addition, it has relatively little new IP in the pipe which makes it even more difficult for investors to care about the longer term future. Simply put, EA can’t free itself from Wall Street’s needs as several analysts have already started to lower their expectations for the year ahead.
GameStop sells but it’s not a party
I already predicted this last year and was almost right: GameStop has been tryin癫痫怎么确诊g to get acquired for the past six months. Its C-suite is a mess, resulting in a letter from one of its largest shareholders, Tiger Management, to get its sh!t together (aka perform a strategic review).
The company has been unable to find a buyer and now finds itself forced to essentially abandon the diversification strategy it initiated in 2014 by acquiring retail chain in parallel market segments. Just recently GameStop sold off Spring Mobile and is likely to use the money to pay off its debts and improve the likelihood of some private equity firm or a company like Amazon to buy it. No one expected it to be a great year for games retail, but it’s getting sadder.