The Competitive Moats of AAA Gaming Studios Are Like the Cigarette & Casino Industries Combined
Thanks for your thoughts , divergent opinions are what makes a market and I think both of you make some fair points
It's trying to think which is more applicable to each situation I guess
Thanks so much for an awesome article. Quick edit:
The labels on the market cap chart are actually in units of billions but it's labeled as "units of millions".
Lovely post. Thanks for sharing the insights mate.
About the "convergence" of Big Gaming and Big Media, you were coming from the angle of TV series and movie adaptions of original game IPs (even if they were themselves inspired from elsewhere, such as the Witcher series) mutually benefitting the growth of both the game and the media IPs, but really it has always been the case since the beginning, just that people made more video game adaptions of media IPs rather than the other way around. Countless games have been produced this way: from Goldeneye 007, to the numerous Batman and Spiderman games, to Lego Star Wars (Big Media + Big Gaming + Big...Toy?), to Marvel's Avengers. Just curious as to why you are presenting it as something new that's burgeoning in the industry when that was exactly how it was 20+ years ago.
Sorry one more thing - the capitalization of R&D which is allowed under IFRS really bugs me given it is generally not allowed under US GAAP
This is not unique to the games business but I've seen some really aggressive capitalization of costs in some European tech names which bugs me a lot
What do you make of this I think it draws some quite different industry conclusions
interesting breakdown. Big Gaming also tends to be involved in quite abit of M&A, what do you think of buying up smaller studios as a form of growth?