The new breed of gamers have a need for faster, on-demand technology, as offered by Android and Apple. These devices allow for easier and cheaper forms of entertainment at the touch of a finger. And these platforms have spelled disaster for gaming companies like Activation Blizzard and Electronic Arts (EA).
Both companies struggled to find a niche as smartphones were introduced to the market. Paul Sangrey, with The Motley Fool, writes that the industry is in transition.
“The gaming industry is an alliance between the channel providers and the content providers…” (Sangrey, 2013).
The devices provide the channel storage to download the games. However, as Sangrey expounds, there must be a balance and content providers need to have their hands in the pot as well. Since console games and PC games are seemingly on the decrease, content providers need to be more creative.
Despite this speed bump for gaming content providers, over the last year there has been a rise in the profitability of two content provider companies: Activation Blizzard and EA.
According to Yahoo Finance as quoted by Sangrey,
“Both of these companies have been weathering the storm well. Activation Blizzard is up by about 40% this (year) after falling about 10% last year, and EAis up by about 60% this year after falling about 30% last year.”
Sangrey mentioned that Activation Blizzard’s MMORPG and “…several franchises of video games…” paved the way for Activation Blizzard to be profitable, led by World of Warcraft (WoW).
Despite WoW losing over a million subscribers in recent months, Activation Blizzard is sitting financially strong with over “…4 Billion in cash…”
EAis also sitting exceptionally strong, with several titles scheduled to release and “… 1.68 Billion…” in cash and a “net digital revenue of $453 Million.
EAowns Bioware, which released Star Wars the Old Republic (SWTOR)–an MMORPG that has implications in aiding EAraise its financial status.
So, PC and console gamers: don’t fret as there is hope for the future! Keep buying consoles, console games, PC Games and downloadable games to your phone or IPod.
