Capcom has experienced a decade of consistent profit growth, largely driven by the digital shift in gaming. The company has leveraged the convenience and affordability of digital sales, achieving a massive 93% digital revenue share in FY23. Capcom’s strategy of aggressive discounting for its vast game catalog has been key to capturing new users and driving this growth.
Toymaker Hasbro reported a smaller-than-anticipated decline in first-quarter sales and exceeded profit estimates, mitigating weaker demand for toys with leaner inventories and steady digital gaming revenue. Efforts to optimize inventory throughout 2023 and cost-saving initiatives contributed to an expanded operating margin. Despite a drop in Nerf toy gun sales, the company’s Wizards of the Coast and Digital Gaming segment experienced a 7% revenue increase, driven by popular titles like “Baldur’s Gate III” and “Monopoly Go!”. Hasbro remains on track to meet its fiscal 2024 targets, as previously outlined in February.
Electronic Arts (EA) prepares to release its fiscal fourth-quarter earnings on May 7, under moderate market expectations. Despite industry headwinds, analysts remain optimistic about EA’s long-term prospects due to its strong portfolio of upcoming releases and focus on digital expansion. Key catalysts for investors include the performance of new game launches, digital growth, and potential mergers and acquisitions.
