Video games, COVID-19, stocks by LittleIrishman
Even without the COVID-19 and staying home, video game usage was always very big, so one can only imagine how much video gaming would exploded with this Australian and worldwide virus.
Video game manufacturers and providers, and video game retailers, together, would have heavily capitalised, on the COVID-19 among private residences, business-wise and the local and international stock exchange.
One may state this increased video gaming could turn into an addiction for some users, but overall, there is a method-in-the-madness because at least these gamers are at home and being constructive, instead of being elsewhere and getting into wrong behaviour, i.e. crime, substance abuse, and gambling for instance.
Nintendo for example is the largest video game company by revenue, with an enormous net value of over $US85 billion. Some of their most famous games were Super Mario Brothers, Pokemon, and The Legend of Zelda.
The Nintendo WII video unit of actual, physical gaming was very popular for people of all ages, i.e. sports, health and fitness, and self-defence/martial arts.
There is even the potentially huge idea of paid video gaming tournaments, matches, and competitions, like the various current paid poker, and funded recycling for the local Australian and worldwide communities.
What is interesting in this news article is that, 'GameStop', is by far the world's largest video game retailer. Starting in 1984 Texas, America, it operates 5,509 retail stores worldwide throughout America, Canada, Australia, New Zealand, and Europe. It made $US 6.466 billion in 2019. In Australia for instance, with locals perhaps not even realising the name and retailer, GameStop stores are in some-to-most major shopping centres.
However, GameStop has been struggling of lately, with its shares dropping from $US16 a share in January 2019, to $US5 by January 2020.
Now by some chance and luck, a small Western Australian mining company mainly into nickel and cobalt, GME Resources, which makes about $40 million, happened to have a matching ASX code as GameStop, and as a result, temporarily boomed. GME Resources' soared more than 50% to 12 cents, its highest since 2018, but it was nothing to do with its world-class nickel or cobalt.
Even the management of GME Resources were baffled as to how their company temporarily skyrocketed, not even knowing who GameStop were.
However, and the mixed bag of emotions that exists here is that there has been heavily speculation that local participating traders from Reddit forums (ASXBets, and Wallstreet bets), and Facebook bought and showed off thousands of GME Resources' stocks as a joke, possible dangerous action. They may have even seriously bought out short-sold companies like GME just to get back on larger US hedge funds.
GME is majority-owned by international fund manager, ICM, as well as by some of the company's management.
- Game Designing.org. 'Breaking Down the Biggest Video Game Design Studios and Gaming Publishers of all time'
- Gilbert, Ben. (July 4, 2019) 'The world's biggest video game retailer, GameStop, is dying: Here's what led to the retail giant's demise,' Business Insider.com.au -- Tech Insider
- Powell, Dominic. (January 28, 2021) 'Stunned: GameStop trading frenzy causes local mining company shares to soar', Sydney Morning Herald (SMH) - Investing
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