Published on 1 Oct 2023 on InvestorPlace via Yahoo Finance
Ticking Time Bombs: 3 Gaming Stocks to Dump Before the Damage Is Done
The gaming industry can seem like a gold mine, with over 3 billion gamers globally spending billions of dollars on interactive entertainment. However, while smash hits like Minecraft and Grand Theft Auto V can print money indefinitely, most games quickly fade into obscurity. This presents a major problem for gaming companies relying on just one or two titles to support their entire business. When the hits dry up or new releases flop, these firms can suffer catastrophic declines.
In this article, I highlight three gaming stocks that face precisely that risk of collapse, as their current games lose steam. While generational franchises like Call of Duty and Mario Kart evolve across endless sequels, one-trick studios without deep IP portfolios often struggle to replicate past success. And with mobile gaming lowering consumer pricing expectations, premium $60 console titles don’t cut it anymore, without delivering a knockout experience.
Investors backing such studios without rigorous analysis risk getting caught up in the aftermath. So before the damage accelerates, let’s explore three gaming stocks on the brink and why you should dump them immediately.