Big Gaming Industry Primer - by Aaron Pek
Update: Last week, CDPR shutdown rumors that it was entertaining a lucrative buyout offer from Sony. However, this boosts credibility that the potential future industry developments as described below — which predicted a possible acquisition in CDPR’s future — are very real! Big Gaming sector, The Mightiest Moat — The hit-based business moats in the Big Gaming sector are unbelievably wide. Their microtransaction & lootbox mechanics are like cigarettes & casinos combined… amongst the most lucrative & predictable recurring revenue streams in all of business. The barriers to entry for the Big Gaming sector are equally ludicrous & extremely hostile to new entrants — perhaps why there are only <10 US-listed pure-play Big Gaming companies. Infinite FCF cheat code — The great thing about being in the Big Gaming sector is the ever-recurring FCF streams from owning a hit AAA gaming franchise — think of cherished decade-old titles like Assassin’s Creed or Final Fantasy which are still throwing o
Not Investment Advice. Read Disclaimers. Big Gaming sector, The Mightiest Moat — The hit-based business moats in the Big Gaming sector are unbelievably wide. Their microtransaction & lootbox mechanics are like cigarettes & casinos combined… amongst the most lucrative & predictable recurring revenue streams in all of business. The barriers to entry for the Big Gaming sector are equally ludicrous & extremely hostile to new entrants — perhaps why there are only <10 US-listed pure-play Big Gaming companies. Infinite FCF cheat code — The great thing about being in the Big Gaming sector is the…
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