As gaming pundits, we often make claims that X change or Y addition are terrible design decisions that will cause companies to lose money, subscribers, etc. They are easy claims to make, when there is absolutely no sense of follow-up or acknowledgement that something like stock price is affected by many different factors.
Well, color me surprised when I stumbled across the actual stock prices of gaming companies the other day. That gaming stocks have been pummeled this year is putting it mildly.
ATVI is Activision Blizzard, currently trading at $46.52, and the stock is down -26.53% year-to-date (YTD). If you look at just the last six months, it is down -36%. EA is, well, EA, currently trading at $81.18 and down -22.73% YTD. Again, if you look just at the last six months, EA is down -40%.
It is incredibly easy to say “well of course.” Beta for Azeroth will probably go down as one of the worst expansions in WoW history – or at least give Cataclysm a run for its money – so of course the stock prices reflect that. Then with EA, you only have to look at all the “historical inaccuracies” they added to Battlefield V and the controversies that spawned. Get woke, go broke, right?
Well… hold up.
TTWO is Take Two Interactive, and is currently trading at $101.69. You might know this company as the one who released a little game called Red Dead Redemption 2. The YTD movement has been… -7.87%. That is certainly less of a drop than Blizzard and EA though right? Yeah, sorta. The three month decline has been -24% though, and that’s with a critically acclaimed (Metacritic: 97) title coming out a month ago.
This is not to suggest that what a company does, or any sort of controversies it generates, has no impact on their bottom line and thus stock price. But sometimes it’s good to acknowledge that there is a large gap between what we feel should be the natural consequence of a given design choice, and what actually happens in the real world. On occasion, things line up and we appear prescient. A lot of the time though, we rage in our little bubbles and the world moves on without us.