• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Video

The Dumbest Thing on Wall Street: Anyone Who Says Video Gaming Is Dead

Gaming companies are soaring to new highs in spite of a changing consumer who has altered nearly every other type of discretionary spending. People -- especially young people -- are still buying gaming consoles, they're still adopting new technology and they're still opting in to expensive services. If you think gaming is dead, you're one of the dumbest on Wall Street.
By KINSEY GRANT Dec 24, 2017 | 08:10 PM EST
Stocks quotes in this article: EA, TTWO, ATVI

Millennials take a lot of flak for killing things. But one thing they aren't killing is the video game industry.

Gaming companies are soaring to new highs in spite of a changing consumer. People -- especially young people -- are still buying gaming consoles, they're still adopting new technology and they're still opting in to expensive services. If you think gaming is dead, you're one of the dumbest on Wall Street.

Think about this: the most recent stats from September show that video game product sales grew 39% from the same time last year. Console sales alone climbed 52%. Looking into the holiday season, analysts see the top 5 games next quarter generating 20% more revenue than the top five did last year.

According to one source I spoke to, as long as there is money to be made in gaming -- and there is still plenty -- the industry won't take the backseat to other forms of entertainment. Those who say the advent of streaming services such as Netflix and Hulu will overtake gaming are comparing apples to oranges. Gaming is an interactive form of entertainment, while Netflix is passive. The two are in separate leagues, and gaming is no sitting duck.

It's a similar landscape for mobile gaming compared to more traditional console experiences. They're just plain different. We play games on our phones because we can't bring a PlayStation4 on the subway.

But part of why gaming companies like Activision Blizzard (ATVI) , Take Two (TTWO) and EA (EA) are thriving is because they recognize that.

The successful gaming companies boast diversified product portfolios with properties in console, personal computer and mobile gaming. Their diversity can keep them afloat through any storm -- and any trend.

What's more, gaming companies are far from the firms that once relied on one new flagship release each year. In-game purchases to access a new avatar or level up, or accessories and services sales provide healthy revenue in between major releases.

With all that, gaming companies are positioned for a wild holiday season. If you still think that gaming, just like your old '76 Atari, are dead - you might be one of the dumbest on Wall Street.

Watch More with TheStreet :
  • Why Apple Could Gain Another 12%
  • What Does Alibaba Actually Do?
  • House GOP Tax Plan Smacks the Middle Class
  • Veterans Day Freebies That Are Likely in Your Neighborhood
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

TAGS: Investing | Video | Economy | Technology | Opinion | Industrials | Economic Data | Consumer Staples | Gaming | Entertainment | Video Games | Software & Services | Financial Services

More from Video

Amid the Selling, Here's the Big Question Now

James "Rev Shark" DePorre
Feb 25, 2021 4:43 PM EST

How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.

One Tweet Pulls the Rug Out From Under the Indexes

James "Rev Shark" DePorre
Oct 6, 2020 4:44 PM EDT

Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.

A Technical Look at the New Dow Jones Industrial Average

Bruce Kamich
Aug 25, 2020 1:11 PM EDT

Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.

Conagra Brands Looks Tastier After Its Upgrade to Buy

Bruce Kamich
Dec 30, 2019 12:39 PM EST

CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.

Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts

Bruce Kamich
Oct 30, 2019 1:13 PM EDT

Breaking down an approach to the long side of this biotech stock.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:48 AM EDT CHRIS VERSACE

    Latest AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • 03:25 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Don't Just Sit There and 'Hope' for Your Stocks, M...
  • 07:32 AM EDT BOB LANG

    Webinar Thursday After the Close: Option Spread Trading

    Thursday, my good friend and colleague Sam DeMarco...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login