The latest suspension of approvals for new online games in China, the world’s largest gaming market, knocked down the share prices of Europe’s and US gaming companies. Following the fresh push by Chinese regulators, the shares of Activision Blizzard, Nintendo and Roblox dropped by 5%, while Electronic Arts and Take-Two Interactive Software fell by 12%. However, the five companies have seen their share prices fall throughout this year.
According to data presented by Fair Betting Sites, the combined market cap of the five gaming giants dipped by almost $60bn year-to-date.
Roblox Market Cap Plunged by 63% YTD, the Biggest Drop Among the Top Five
According to Ycharts and Macrotrends data, Roblox has suffered the worst share price drop of the five gaming giants this year. In the first half of 2022, the company’s share price plummeted 76% following disappointing financial results and a stock downgrade, resulting in a $30 price target on its shares. Also, analysts are concerned that slowing user engagement is a problem that could hurt Roblox’s growth.
In Q1 2022, Roblox reported 54.1 million daily active users, up from 49.5 million in December last year. However, for the first time since 2018, the number of DAUs dropped to 52.2 million in the second quarter.
As a result, the Roblox market cap dipped from $60.4bn in January to $14.2bn in May. Although the combined value of shares of the gaming platform rose to $21.8bn since then, that is still 63% less than in January.
Activision Blizzard Lost $5.5B, Nintendo’s Market Cap Down by $6.4B
As the largest gaming company globally, Activision Blizzard witnessed an 8% market cap drop year-to-date. Statistics show the combined value of shares of the gaming giant, which owns Activision Publishing, Blizzard Entertainment, King, Major League Gaming, and Activision Blizzard Studios, stood at $58.6bn last week, down from $64.1bn in January.
In Q2 2022, the revenues of the gaming company dropped by 28% YoY to $1.64bn, while 94 million monthly active users accessed Activision gaming titles, 25% less than in the same quarter a year ago. After reaching an all-time peak of 150 million in Q1 2021, the number of MAUs has fallen for five quarters.
As the second-largest gaming company, Nintendo lost $6.4bn in market cap year-to-date, with the combined value of its shares falling from $54.8bn in January to $48.4bn last week.
Electronic Arts and Take-Two Interactive Software follow, with a $5.2bn and $2.2bn market cap drop, respectively.
According to YCharts and Macrotrends data, the combined market cap of the five gaming giants dropped by 25% in nine months, falling from $237bn in January to $179bn as of last week.