Investor’s “News of the Week” (March 24th – March 31st)

 

 

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This is how much money was and will be made from now on.

 

 

1) Cloud Gaming Market Expected To Reach $1.4 Billion in 2021

Market researcher Newzoo put out a study that proves how much potential the cloud gaming market will have in the following years. Shortly, it should reach the $1.4 billion tag by the end of this year (2021), doubling the total market earnings of last year (2020).

Newzoo Cloud Gaming Market 2021

Source: Newzoo

Some factors attributed to this growth: the release of Microsoft’s xCloud in conjunction with the Game Pass Ultimate, the introduction of Amazon Luna and the GeForce Now upgrade to support +800 titles brought +23.7 million paying users across all platforms.

Both the big corporations and the independent, small-sized cloud gaming companies, with the help of local telcos, have successfully been introduced into the market.

That means, according to Newzoo, that the cloud gaming industry might get close to $5.14 billion by the end of 2023.

 

 

2) Microsoft Plans to Buy Discord At $10 Billion

Several sources have rumored that the messaging platform started to pick up interest after other big companies have approached with purchasing intentions. And reportedly, Microsoft is the one that successfully signed their way into an exclusive acquisition discussion.

This sale might be worth $10 billion or so, but we’ll only know soon, once the negotiation closes.

Microsoft-to-Purchase-Discord-10-billion

Bloomberg is among the trustable sources who reported the situation. The same confirmed that representatives from both companies have declined to comment about it.

So far, the report says that it was Phil Spencer (head of Xbox) who’s talking with the team at Discord. Which wouldn’t be strange, considering Microsoft already owns Skype (Discord’s rival platform).

It was estimated that Skype had 40 million active users by last March, versus 140 million monthly active users that Discord recorded in late 2020. Microsoft has partnered with the platform before, to offer three months of Discord Nitro as a perk of Game pass subscriptions.

 

 

3) Razer Reports $1 Billion In Revenue For The First Time

On December 31, 2020, Razer broke a record year with $1.2 billion in revenue (up 48% compared to 2019). Mostly came from sales of peripherals hardware, which saw a skyrocketing increase of 51.8% (reaching the $1.08 billion).

Razer 1 billion dollar in Revenue

While the revenue figures of its software business are yet to be known, the service segment (as Razer Fintech) grew up 66.8% (around $128.4 million) in 2020 alone.

The whole year GAAP net profit was $800,000 which was “ahead of all expectations” considering they started the year with a loss of $17.7 million. Currently, its cash balance is positive, at $600 million, with no debt.

 

 

4) Take a Look At Razer’s 10-Year Environmental Roadmap

Here’s the reason why Razer might keep its growth trend for a couple of years, if not a decade: a 10-year environmental roadmap was revealed, full of commitments that seek to lower the environmental impact of Razer in the next few years.

Mainly, they plan to run their offices entirely off of renewable energy sources by 2025. Because their offices in Hamburg, Germany have reached the milestone, then they’re confident that they will be met as well in their new Singapore headquarters.

In fact, there’s a chance that Tesla will help the Razer team to make it happen:

Razer also plans to make all of their products recyclable by 2025, with FSC-certified, biodegradable packaging by 2030. They also expect to eliminate all use of plastics from their office by 2030.

 

 

5) GameStop Releases 1st 2021 Earnings Report – Nintendo of America “Reggie” Quits

Because of US regulations, GameStop couldn’t cash in on the massive rice of stock prices. If they would have done it, they could get into serious issues with their investments.

Finally, the first earnings report is here, to show the real numbers behind all the controversy behind Reddit’s day traders. And curiously enough, the fourth-quarter results didn’t meet analysts’ expectations: $100 million less than predicted, and sales dropped again.

GameStop refused to meet the usual Q&A earning call with investors, but when the time came, they didn’t take it well: the stock price dropped 10% after the event.

At the same time, Jenna Owens (former Amazon distribution and fulfillment director) stepped into the company, as Reggie Fils-Aime (former president at Nintendo of America) stepped down from it, after 12 months in the role.

reggie-to-step-down-from-gamestops-board-of-directors

 

 

6) Sealed Copy of Super Mario Bros. Is Being Sold For +$300,000

Did you know that a 86s-87s sealed copy of the all-time classic Super Mario Bros. is being sold now at +$300,000? It’s enlisted at the Heritage Auctions website to bid, with a quality rating of 9.6/10.

Many expect that the price will go higher, becoming the most expensive game item ever sold. A similar sealed copy was sold with a price tag three-times lower than this one.

Heritage Auction Mario Bros

The record was held by a prototype of the Nintendo PlayStation console, which sold for $380,000. This one never came to release, because Sony decided to produce its own, standalone version. Terry Diebold owned it and Greg McLemore won the auction.

 

 

7) Over Billions: Genshin Impact, PUBG Mobile, and Crash Bandicoot: On The Run

March was a big year for mobile games, but even better for 3 games in particular.

First and foremost, Genshin Impact achieved its $1 billion in revenue goal on mobile devices, only six months after its release (back in September of 2021). This is for its Android and iOS versions, with Mihoyo’s gacha collecting $6 million daily, during the first 2 months.

That makes Genshin Impact the fastest to hit the billion mark, over Pokemon GO (9 months) and Lineage M (10 months).

Genshin Impact 1-billion-revenue-on-mobile

Source: SensorTower

SensorTower also reported that PUBG mobile grossed $5.1 billion so far. According to their data collected, half of all revenue collected came from its Chinese version. The game generated around $7.4 million every day.

Then, there’s the first mobile Crash Bandicoot’s game, available on Android and iOS, which amassed +8 million downloads on its first day of release. King’s auto-runner adaptation has mixed reviews, but the nostalgia undoubtedly attracted many to the classic franchise.

Crash-on-the-Run-gameplay

 

 

 

8) Konami Will Close 16 Of Its Japanese Sports Clubs

Japanese cooperative non-profit news agency, Kyodo News, has reported that sixteen Konami sports clubs will close in late May. Like most tourism-fueled businesses, the decline of its customers due to the COVID-19 pandemia has produced the conclusion.

Konami tried to keep them “running” while endorsing safety during the pandemic with videos that prove exercise can be done while social distancing, but many of them from different country locations (Tokyo, Osaka, Niigata, Aichi, among others) cannot handle it anymore.

Considering how influential video games are for Japan, it’s not strange to see non-endemic businesses like this being built inside and outside the country, as in the case of Atari’s hotel in Las Vegas.

For Konami, it was their presence in sports that got them developing sports games and sponsoring Japanese athletes.

 

 

 

9) Sony Will Pay Record Bonus to Employees (Seven Months Worth of Salary)

According to NHK, Sony is about to give a record-breaking bonus to its employees which equate to seven months of salary, even after the union demanded 6.9 months during Spring negotiations. If it occurs, it would be its highest recorded bonus in decades.

Sony to Pay Record Bonuses 2021

The same articles indicate that the reason behind this bonus is because of the huge earnings Sony projects for this year (more than $10 billion for the financial year, which ends this month), after such a tough but still successful PS5 launch.

The worldwide stock shortage didn’t prevent the PS5 from getting massive dollar sales. And their numbers will keep growing as they start to manufacture and distribute more consoles.

 

 

10) Over $110 Million Raised By RecRoom, HiDef Inc., and Frost Giant Studios

Three studios have gathered over $100 million in funding rounds on this last week of March.

The first one was, RecRoom (online social platform) at a valuation of $1.25 billion. Thanks to Index Ventures, Sequoia Capital, and the contribution from Madrona Venture Group, the Seattle-based firm reached $149 million from lifetime funding.

Rec Room raises 100 million

Also, HiDef, Inc., formed by industry veterans (Anthony Castoro, Jace Hall, Rick Fox, and Dr. David Washington), raised $9 million in both seed and Series A funding (of which $7.5 million came from investment firm Wick Capital Partners).

HiDef Raises 9 million metaverse project

Finally, the 2020s founded studio: Frost Giant, raised $5 million (making $9.7 million to date) to make a new RTS title. Many Blizzard veterans, Starcraft 2 and Warcraft 3 developers/designers are behind the team.

Frost Giant Studios

Marco Morales

Esports Marketer. Marco is the Founder of DFY Gaming. He types for a living but writes awfully on pen and paper.

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