Microsoft and Sony are expected to roll out their new consoles in November
Initial reports note that new video game releases are likely to come at higher prices
MSFT and ATVI offer two good trading opportunities for investors seeking video game exposure
The year of 2020 could easily be remembered as a year when the gaming industry reached new highs. The pandemic forced people to stay at their homes and, therefore, increasing the amount of time they spend on home entertainment.
New consoles coming
The gaming industry will welcome new consoles next month, which is likely to increase the spotlight on video game producers, who will be hoping that gamers are willing to spend more money on new releases.
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Microsoft and Sony are expected to roll out their new consoles in November. New consoles will yield new versions of popular video games. Initial reports note that new releases are likely to come at higher prices.
For instance, the popular basketball game NBA 2K21 will cost $70 on Xbox Series X and PS5. Price hikes pushed Sony to introduce a price ceiling of $70 per game.
“Our own Worldwide Studios titles will be priced from US$49.99 to US$69.99 (RRP) on PS5,” said Jim Ryan, Chief Executive of Sony Interactive Entertainment CEO.
Some analysts believe that now it’s a right time to hike prices.
“There’s no good time for a price increase. But saying that, there may be times where it’s more suitable for there to be a price increase, and I think this is quite a suitable time. If you have to bite the bullet with a change like this, it’s best to do it in sync with major transitions,” Steve Bailey, principal games analyst at research company Omdia, said.
Here are two stocks that I believe will prove to be a good investment now given that the gaming industry will welcome new consoles next month.
Microsoft will release its Xbox Series X in November. The console is priced at $500, while the digital-only version costs $300. The company’s exposure to the video gaming industry increased after an acquisition of ZeniMax Media for $7.5 billion.
Microsoft stock daily chart (TradingView)
Microsoft stock price closed the week 0.78% in the red to protect gains it made two weeks ago. From the technical side, the zone around $190 offers a great opportunity to buy MSFT shares.
Activision Blizzard (ATVI)
Activision Blizzard (NASDAQ: ATVI), which produces one of the world’s most popular video games World of Warcraft (WoW), disappointed gaming fans this week after delaying World of Warcraft: Shadowlands.
ATVI stock weekly chart (TradingView)
However, the delay shouldn’t create too much trouble for the company. Jefferies’ analysts believe that the deal is a “non-issue” as they place the price target of $105.00 per share for ATVI.
News pushed ATVI stock lower to close the week over 3% in the red. A further move lower to $75 should offer a new buying opportunity.
As video games are mostly used in homes, they have become an increasingly popular option for many consumers during the time of the pandemic. Microsoft and Sony are both releasing new consoles in November, paving the way for higher revenue from console and video games sales.
New York, July 24, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Europe Stainless Steel Electrical Enclosures Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Mounting Type ; Industry" - https://www.reportlinker.com/p05934812/?utm_source=GNWThe governments in the region are highly concerned about the safety and health of the workers.To decrease the number of accidents in various industries, such as oil & gas and energy & power, the government regulatory bodies have issued several safety regulations.These regulations and standards enforce industries to use robust stainless steel electrical enclosures to avoid electric shocks or vibrations.Companies are also encouraged to follow safety standards.NEMA, the association of electrical equipment manufacturers, encourages the competitiveness of the electrical product industry through the development of standards; the organization is working to promote electrical standards globally.To standardize enclosure performance, organizations such as NEMA, IEC, and UL provide rating systems for identifying the capacity of an electrical enclosure to withstand tough environmental conditions.It enables users to make decisions regarding suitable, informed enclosures selection to meet their application-specific requirements. The standards offer a degree of protection against access to dangerous parts and entrance of solid foreign objects.Due to the growing power and industrial infrastructure in Europe, workforce safety is of prime importance, which has, in turn, led to the adoption of safety standards for components in several industries.This has made stainless steel electric enclosures an important element in various industrial applications.The increasing number of stringent regulations regarding safety and rising demand for hygienic enclosures in food & beverages and medical and pharmaceutical industries are majorly driving the growth of the market in Europe.Moreover, the region is spending heavily on energy and power-related projects to mitigate greenhouse gas emissions.European countries have invested US$ 37.27 billion in Connecting Europe Facility (CEF) for enhancing energy, transport, and digital infrastructure from 2014 and 2020. Thus, heavy investments on energy & power projects surge the demand for stainless steel electrical enclosures as they cater to tough industrial operations, and prevent direct contact between machines and wiring, and humans, keeping a check on mishaps. The energy & power equipment need to ensure EMC shielding and corrosion resistance; they should also be incorporated with power conversion and multicomponent systems. This can be achieved by the use of stainless steel electrical enclosures. The enclosures are highly installed in energy & power sector to protect the components within electrical power plants; also, government regulations are supporting the adoption of renewable energy sources, thus boosting the demand for stainless steel electrical enclosures.In terms of mounting type, the free-standing segment led the Europe stainless steel electrical enclosures market in 2019 with the largest share, and it is expected to continue to be the largest shareholder during the forecast period.However, the others segment is expected to register the highest CAGR in the market during the forecast period.Free-standing stainless steel enclosures are robust industrial products. Numerous European companies are involved in designing the free-standing enclosures; for instance, nVent offers free-standing enclosures built to safeguard from wash-down and other harsh environmental conditions in the oil & gas, food & beverages, and wastewater industries.The Europe stainless steel electrical enclosures market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.The process also serves the purpose of obtaining overview and forecast for the Europe stainless steel electrical enclosures market with respects to all the segments.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic.The participants typically participating in this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Europe stainless steel electrical enclosures market. A few of the players operating in the Europe stainless steel electrical enclosures market are ABB Ltd., Cubic-Modulsystem A/S, Delvalle Box, Electric International Ltd., ETA S.P.A, Euro Inox Quality SRL, Ilinox SRL, MP Gamma SRL, NVENT (ELDON), Rittal GmbH and Co. KG, Schneider Electric, and Zanardo S.P.A.Read the full report: https://www.reportlinker.com/p05934812/?utm_source=GNWAbout ReportlinkerReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.__________________________