"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.
NEW RELEASES: This week's major release is the PC port of 2018 Sony-published (SONY) title "Marvel's Spider-Man." The game, which previously was only available on PlayStation 4 and PlayStation 5, launches for Windows on August 12.
TAKE-TWO: Take-Two (TTWO) reported downbeat quarterly results after the close on Monday, with GAAP earnings per share dropping sharply year-over-year to a loss and net bookings coming in below consensus estimates. Despite the metrics, chairman and CEO Strauss Zelnick said that fiscal 2023 is "off to a strong start," saying that on a pre-combination basis, net bookings were roughly $731M, which was higher than in the same period a year ago. Looking ahead, the company provided a conservative net bookings outlook for FY23 and guided for a GAAP loss per share of ($2.75)-($2.50) for the year.
"Our pipeline for the year continues to look very strong, and we are excited to expand significantly our mobile presence with a best-in-class platform," Zelnick added. "Our new forecast takes into account some movement in our release slate for the year, foreign currency pressures, and macroeconomic and geopolitical uncertainty. As we look to the future, our long-term vision is clearer than ever, and we believe that our combination with Zynga will enable us to better capitalize on the evolving dynamics of the interactive entertainment industry. As we deliver our expansive, diverse pipeline and pursue the vast opportunities that we have identified through our combination with Zynga, we see a path to engage even greater audiences around the world, grow our scale, and enhance our margins." Of note, the company also delayed the upcoming release of tactics game "Marvel's Midnight Suns" to FY23 from October 2022.
EA RESULTS: Last week, Electronic Arts (EA) reported mixed results for Q1, with earnings per share for the quarter increasing year-over-year but net bookings slipping from the same period last year. The company said that net bookings for the trailing twelve months rose 22% year-over-year while live services and other net bookings for the trailing twelve months were up 20% year-over-year and represent 73% of total net bookings. The game maker added that its player network grew to nearly 600M active accounts at quarter end. Looking ahead, EA provided FY23 net bookings guidance roughly in line with consensus expectations.
“EA delivered strong results in Q1 with our growing player network deeply engaged in new games and live services,” said CEO Andrew Wilson. “Our expanding EA SPORTS portfolio and owned IP franchises continue to power resilience and longevity in our business. Our teams remain focused on what they do best – making amazing experiences that inspire new generations to play, watch, create, compete and connect.”
NINTENDO RESULTS: Meanwhile, Nintendo (NTDOY) also reported results for the first quarter last week, with Q1 operating profit and revenue falling year-over-year, largely due to a decline in Switch unit sales. "Hardware sales for the quarter totaled 3.43 million units and software sales totaled 41.41 million units," the company said. "However, due to the effects of supply shortages in semiconductors and other components among other factors, hardware sales were down 22.9% year-on-year, and software sales were down 8.6% year-on-year."
Looking ahead, the Japanese game giant reiterated its original financial forecast for the current fiscal year. "Regarding Nintendo Switch, we will continue to convey the appeal of all three hardware models in order to maintain sales momentum and expand the install base," the company said. "As for software, we released Xenoblade Chronicles 3 in July, and are scheduled to release Splatoon 3 in September, Bayonetta 3 in October, and Pokémon Scarlet and Pokémon Violet in November. Other software publishers also plan to release a wide variety of compelling titles, and we will work to invigorate the platform through the combination of existing popular titles and a continuous stream of new titles." Of note, Nikkei reported that Nintendo does not plan to release new hardware this fiscal year.
OTHER STORIES TO WATCH:
Sony
-1.35 (-1.59%)
Take-Two
-3.39 (-2.70%)
Electronic Arts
-2.24 (-1.71%)
Nintendo
-0.82 (-1.52%)
Tencent
-0.69 (-1.79%)
Square Enix
+ (+0.00%)
Ubisoft
-0.075 (-0.79%)
acquired by MSFT
-0.27 (-0.33%)
NetEase
+0.32 (+0.36%)
Microsoft
+0.51 (+0.18%)
Capcom
-0.29 (-2.11%)
GameStop
-3.38 (-7.79%)
Roblox
-0.78 (-1.59%)