What You Missed This Week in Video Games

New “Final Fantasy” out this week

“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 Square Enix’s (SQNXF) action role-playing game “Final Fantasy XVI,” which launches exclusively for PlayStation 5 (SONY) on June 22. Also out this week is Activision’s (ATVI) multiplayer party game “Crash Team Rumble,” which launches June 20 for PS4, PS5, Xbox One (MSFT), and Xbox Series X/S.

SONY CLOUD STREAMING: 

In a blog post last week, Sony said that it is currently testing cloud streaming for supported PlayStation 5 games, including PS5 titles from the PlayStation Plus Game Catalog and Game Trials, as well as supported digital PS5 titles that players own. “When this feature launches, cloud game streaming for supported PS5 titles will be available for use directly on your PS5 console,” said Nick Maguire, VP of Global Services, Global Sales, and Business Operations at Sony Interactive Entertainment. “That means as a Premium member, it’ll be easier to jump into your favorite games without downloading them first onto your PS5 console. Our goal is to add this as an additional benefit to PlayStation Plus Premium as part of our ongoing efforts to enhance the value of PlayStation Plus. We think it’s important for Premium members to be able to enjoy as many games as possible via cloud streaming. As more games continue to launch on the PS5 console, we look forward to adding cloud streaming capability for PS5 titles in addition to the PS3, PS4 and classic titles that are already available for Premium members to stream. We’re in the early stages right now, and we can’t wait to share more details when we’re ready, including a launch time frame. Stay tuned!”

CIRCANA ON VR SALES: 

Circana analyst Ben Arnold said that VR sales in 2023 have been significantly lower than last year, with unit sales declining by 70%. Higher prices last summer contributed to the decline in unit-sales volume. Increased supply of current-generation game consoles has had an effect, as well, challenging VR for a portion consumers’ technology spending. The biggest challenge confronting the market for VR and other mixed reality devices, however, is the lack of new, innovative products. The relatively few new headsets released over the past 18 months have focused more on niche audiences, like VR users in enterprise settings or PS5 owners in the case of Playstation VR 2. The MR market is in search of a device that will be universally adopted. The launch of new products from Apple (AAPL) and Meta (META) importantly will broaden the selection of devices consumers have to choose from. With new hardware designs and updated specifications, there are more premium, mid-tier, and entry-level products available to suit a wider array of preferences and budgets, Arnold noted. New findings from the Circana Connected Intelligence Wearables Ownership Report confirm that men aged 25 to 34 are twice as likely to own a VR headset than the average consumer to own a VR headset; this group is also the most likely to report purchase intent for VR products (54%). The addition of new extended reality products and applications could potentially entice a different user than the young early adopters who are typically drawn to new technology products.

“Though VR headsets and smart glasses will not appeal to every consumer, our current fascination with the Metaverse and other immersive digital environments requires participation from users of many stripes,” the analyst added. “With an expanding market of devices, consumers have more options to experience this technology and its appeal should grow. The market for extended reality devices will only get more crowded from here – brands that deliver the best experiences and capture the most engaged audiences will win.”

MICROSOFT/ACTIVISION: 

Last week, U.S. District Judge Edward Davila granted the FTC’s request to temporarily block Microsoft’s proposed takeover of Activision Blizzard and scheduled a hearing for next week, according to Reuters‘ David Shepardson. The judge set a two-day evidentiary hearing on the FTC request for a preliminary injunction for June 22-23 in San Francisco, Shepardson added, noting that Microsoft could have closed on the $69B transaction as early as last Friday.

OTHER STORIES TO WATCH:

• Microsoft is no longer developing new games for the Xbox One, Axios reports [read more]
• Canaccord analyst Jason Tilchen initiated coverage on Roblox (RBLX) with a Buy rating [read more]
• Comcast’s (CMCSA) Illumination denied rumors that the studio is working on an animated “Legend of Zelda” (NTDOY) film, TheWrap reports [read more]

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Originally Posted June 20, 2023 – What You Missed This Week in Video Games