Yahoo Finance StockBeat: Traders Exit Video Game Stocks as Spending Lull Continues
Investing.com - Electronic Arts (NASDAQ:EA) led a wave of red across video game stocks Friday on data showing gamers held back on spending in September as they await the next generation of consoles slated for next year.
Video game sales fell 8.5% to $1.28 billion year on year in September after hitting a 20-year low in August, according to NPD Group.
Electronic Arts (NASDAQ:EA) was off 1.5%. It had been down as much as 3%, falling below its 50-day and 200-day moving averages, Activision Blizzard (NASDAQ:ATVI) also fell nearly 3% from five-week highs before trimming losses. Take-Two Interactive Software (NASDAQ:TTWO) was up slightly..
For the year so far, videogame spending is down 6% to $8.3 billion, led by a fall in hardware spend as gamers await the console refresh cycle next year.
The next-generation of PlayStation and Xbox consoles are expected to launch in time for the holiday season next year.
With just a handful of big titles released last month, the fall in video game sales shouldn’t come as a surprise, with some saying the data can be overlooked, particularly with the usual strong slate of game released in the lead up to crucial holiday season.
But if demand continues to wane in the coming months, that could be cause for concern. For the moment, however, gaming stocks have played their way into a better position so far this year, with the EA and Take-Two boasting double-digit gains.
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