ESE:CC - Who Might Benefit from Staggering Gaming Growth Projections?
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ValueTheMarketsNews Commentary - With the gaming market projected to expand from$178bn to $267bn between 2021 and 2025, well-positioned serviceproviders to this industry could reap the benefits. This articlediscusses the issue with reference to Apple Inc (NASDAQ: AAPL) , NVIDIA (NASDAQ: NVDA) , Amazon (NASDAQ: AMZN) and ESEEntertainment (TSXV: ESE) (OTCQX: ENTEF).
ESE Entertainment(TSXV: ESE) (OTCQX: ENTEF) is an entertainment and technologycompany focused on gaming and esports. In particular, the business isconcerned with player acquisition services and the creation anddistribution of digital content.
In short, the company are experts in programmaticmarketing for the videogames industry.
With its targeted programmatic campaigns, thebusiness is clocking up more than 7.3 billion impressions and sourcing500,000 new players each month using its sophisticatedtechnology.
Thesefigures have helped attract the attention of some of the biggest namesin the industry and seen ESE Entertainment source legions of playersfor their games.
For example, projects for Roblox and Game of Thrones:Winter is Coming helped bring in 3.6 million and 2 million newplayers respectively.
On the back of these successes, ESE Entertainment has just announced a US$5m contract to deliver its technology and useracquisition services to a major European video game developer andpublisher who is a new customer for the business.
The company’s CEO,Conrad Wasiela, commented:
“This is yet another example of us executingand securing new long-term multimillion dollar contracts for ourgaming technology.
“We are keenly focused on increasing sales and improvingmargins, and we believe landing larger technology contracts is the keyto achieving these goals. We are excited to continue updating currentand future shareholders with new developments at ESE.”
It’s the latest updatefollowing a slew of positive news from ESE Entertainment, with itsrecent record-breaking third quarter financial earnings showing 276% revenue growth to CA$15.9m. Grossprofit soared too, climbing by 595% to CA$3.1m after the businesssigned 25 new deals so far this year.
The business will be hoping that its customeracquisition expertise and technology will make it a key partner formajor developers in the coming years.
Apple Inc ( NASDAQ:AAPL ) designs, manufactures and marketssmartphones, personal computers, tablets, wearables and accessories.The company also offers payment, digital content, cloud andadvertising services. The business’ customers are primarily inconsumer, small & mid-sized business, education, enterprise andgovernment markets worldwide.
A key way in which Apple Inc is poised to enjoy thegaming boom is through its App Store. The platform is already a majormoney-spinner for the tech giant and it reportedly features more thanone million games alongside other applications.
The company hasconfirmed that it is hiking prices on the App Store platform though, noting thata “slower economy” has impacted revenues. Additionally, theplatform is becoming more as Apple Inc looks for more ways to increaserevenue.
While thecompany has a tight grasp on consumers through the popularity of itsiPhones, it seems like these changes to its mobile gaming platformcould hurt its popularity among both gamers and developers.
Additionally, whileApple Inc’s iPhone is still enormously popular, the business appearsto have had some issues with sales of its new model. Late Septembersaw Bloomberg report that the company was shelving plans to hikeproduction of the iPhone 14 after initially overestimatingdemand.
Thebusiness will be hoping that this is merely a blip and not anindicator that its products are losing their appeal.
Nvidia ( NASDAQ:NVDA ) designs, develops and marketsthree-dimensional graphics processors and related software. Thecompany offers products that provide interactive 3D graphics to themainstream personal computer market.
The primary way in which this business enjoysexposure to the videogames industry is through its graphics cards,which are present in many gamers’ computers. These includetop-of-the-line chips that utilize advance technology like artificial intelligence but can set users back over $1,500apiece.
Inaddition to its work on the hardware side of things, Nvidia works withvideogame developers through offerings like Omniverse , the company’s real-time design collaborationand simulation platform.
The idea behind Nvidia’s software is that it can help artistsand designers enjoy more seamless collaboration within the developmentprocess as gaming industry progress leads projects to becomeincreasingly complex and challenging.
But the omniverse platform is just one of manysoftware applications developed by Nvidia for use by game developers.The company’s expansive suite of game development tools includeapplications for simulation, asset processing, lighting and 3Dcreation platforms.
The business will be hoping that continued growth in gamingindustry revenues will bleed through to both its hardware and softwaredevelopment offerings.
Jeff Bezos’ Amazon ( NASDAQ:AMZN ) is an online retailer that offers a widerange of products, including books, music, computers, electronics andnumerous other products. The business offers personalized shoppingservices, Web-based credit card payment and direct shipping tocustomers. The company also operates a cloud platform offeringservices globally.
While Amazon is perhaps best known for its ecommerce and videostreaming service offerings, the company also offers services forvideogame development. These come through Amazon Web Services (AWS),the business’ cloud computing platform.
The company has boasted that its AWS for Games solution will helpdevelopers build, run, and grow their games through dedicatedsolutions for cloud game development, game servers, game security andmore besides.
Thededicated gaming offering, which Amazon announced the launch of inMarch 2022, could be very successful as the company claimed in itsmost recent earnings that AWS is already the most broadly adopted setof cloud infrastructure services.
While the business now has tools on offer for othergame developers, the business has also tried its hand at creatinggames itself. Increasingly ambitious titles from the Amazon Gamessubsidiary have included New World and Lost Ark .
Things haven’t allbeen plain sailing at the game studio though, with reports last year suggesting workers at the studio faced“draconian” limitations on their own personal projects.
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