UBSFY - J.P. Morgan stays bullish on videogames expecting new titles to take on challenge of 2020 comparisons

There's a tough hurdle for videogame companies this year to build on (or even repeat) the stellar sales they saw in an COVID-19 pandemic in the near year, J.P. Morgan says - but the firm is bullish on the sector nonetheless. Key to that positivity is game companies stepping up with healthy pipelines, and the titles coming out on the new generation of game consoles from Sony (SNE +1.7%) and Microsoft (MSFT +0.7%). Taking a pipeline-by-pipeline look, the firm says it while it's cautious on post-pandemic economic trends, it expects sports titles to increase sales on the new consoles - a boon to sports game mainstay Electronic Arts (EA +0.7%). Meanwhile, rival Activision Blizzard (ATVI +1.6%) posted solid holiday sales for its core franchises - Call of Duty, World of Warcraft and Candy Crush Saga - though the firm is cautious on how consumer spending and the console refresh cycle

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J.P. Morgan stays bullish on videogames, expecting new titles to take on challenge of 2020 comparisons