A new look at the creators of Grand Theft Auto, one of the most beloved video game franchises, shows that the next installment could take longer than expected to arrive.
Also last month, the market saw the public market debut of a video game lifestyle brand.
Here, Investing News Network (INN) offers a recap of July’s highlights in the gaming market.
Update on the new Grand Theft Auto game
Grand Theft Auto 6, the next entry in the popular franchise, still looks a long way from seeing a release date, according to the latest internal reports on the game’s progress.
Rockstar Games, a subsidiary of Take-Two Interactive Software (NASDAQ: TTWO), publicly confirmed that development of the new Grand Theft Auto game was “in progress” in February.
However, a report from Bloomberg says major shifts in workplace culture at Rockstar, the game developer behind Grand Theft Auto and the Red Dead Redemption franchise, have slowed progress.
The report highlights key changes underway at Rockstar, including narrowing its pay gap, adding more producers overseeing teams, additional health benefits for workers, and a serious attempt to remove the “crunch.” – a common term for excessive overtime in the video game development industry. Crunch has affected video game studios across the board and has only recently become a problem for major studios to solve.
The slower development progress of what Bloomberg describes as “one of the most anticipated games by fans and investors on the planet” has also been blamed on pandemic-related delays.
During the month of July, shares of Take-Two rose 6.3%. However, over a period since the start of the year, the value of the company has fallen by almost 30%.
The FaZe Clan brand enters the NASDAQ
The gaming industry hit a new milestone last month when a company representing an esports and influencer media entity hit the NASDAQ.
FaZe Holdings (NASDAQ:FAZE) is the parent company of FaZe Clan, an increasingly popular group of gaming influencers offering personality-based content to its fans.
The launch valued the business at US$725 million and was achieved through a special purpose acquisition company tactic. Shares of the company lagged post-launch to close 25% lower, according to CNBC.
Bloomberg noted that the company’s valuation had been reduced from an initial estimate of nearly US$1 billion. Additionally, the company dropped its own revenue projections.
At the end of July, FaZe Holdings was trading at a price of US$13.09, up 32.49% from its launch price. However, the stock initially opened at US$13.02.
Around the INN homepage
- Gaming Market Update: First Half 2022 Review: In this semi-annual update, INN provides a breakdown of expert opinion on the gaming market. The whirlwind of activity in 2022 is distilled for investors looking to catch up with the sector’s performance this year.
From anywhere on the web
- GamesBeat has shared a report from research firm Ampere Analysis showing a potentially significant cliff the global gaming market could see later this year. According to the document, while the game saw explosive levels of spending between 2019 and 2021, it is now showing a serious downturn.
- June game sales in the United States were down from the same time last year, according to video game sales tracker NPD Group. Mat Piscatella, Firm Analyst, shared their takeawaysincluding an 11% year-over-year decline.
- Unity (NYSE:U) has announced an all-stock merger with ironSource (NYSE:IS), a commerce platform providing software solutions to businesses across all industries. The deal values ironSource at approximately US$4.4 billion.
A final thought…
Last month brought two critical developments in the progress of the metaverse: Meta Platforms (NYSE:META) reported a loss of $2.8 billion for its virtual reality division, and LeBron James is now in Fortnite.
That’s right – the NBA’s premier athlete and one of the world’s most famous celebrities is now available to users as a character skin in the hugely popular free-to-play battle royale game Fortnite.
As Facebook parent company Meta rushes to bring users aboard its expansive metaverse concept, millions of gamers are already immersed in a sort of metaverse that brings together various licensed characters into one large digital landscape. These players are already enjoying some of the promising concepts touted by Meta with their peer group – as they have been for a long time.
Don’t forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Bryan McGovern, have no direct investment interests in any of the companies mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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