A consult of U.S. teenagers showed seductiveness and spending on console video games is climbing, boding good for diversion publishers Activision Blizzard (ATVI), Electronic Arts (EA) and Take-Two Interactive Software (TTWO).
Piper Jaffray surveyed 6,500 teenagers national for a 31st semiannual teen survey. Of some-more than 4,000 video diversion respondents, 78% possess a current-generation diversion console or design to in a subsequent dual years, adult from 73% in a tumble survey.
Plus, teen video diversion spending intentions reached new highs in a survey.
Piper researcher Michael Olson, in a investment bank’s investigate report, reiterated his overweight ratings on Activision, EA, Take-Two Interactive and tradesman GameStop (GME).
Teens in a consult design to spend, on average, $214 this year on video games, adult from an 11-year normal of $152.
“The rising turn of seductiveness and tenure in consoles is a transparent certain for a diversion publishers (ATVI, EA, TTWO) and GameStop (GME) as it speaks to a console cycle’s intensity to expostulate program expansion in 2016 and 2017,” Olson pronounced in a news Tuesday.
Male teenagers surveyed pronounced they allot 20% of their altogether spending on food, 15% on clothing, and 13% on video games.
“Amazingly, video games ranks aloft than cars (10%) and wiring (9%),” Olson said. “We trust this is nonetheless another pointer that video diversion consoles are not losing mindshare and, in fact, might be some-more renouned than ever.”
Olson anticipates clever spending on video games in a subsequent 12 months, driven by an uptick in a altogether peculiarity and apportion of vital games. These embody new titles in such renouned franchises as Activision’s “Call of Duty” and EA’s “Titanfall.”
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