Subsequent action following the Sandy Hook Elementary School shootings – be it a recently proposed congressional bill geared towards researching violent games – or other measures will not affect game sales, Cowen & Company analyst Doug Creutz has predicted.
Speaking with Gamespot, Creutz revealed that investors in the games industry have grown concerned that any legislation drafted off the back of proposed inquiries, which surrounding games and violence, will impact on game sales. However, he stated that any impact would be “minor at most.”
He then added, “We have received many questions from investors about the potential impact of the recent tragedy in Newtown on our covered universe of video game publisher stocks,” Creutz said. “While this is a difficult issue to address due to the intense emotions surrounding the incident, we have attempted to present a summary of the relevant facts herein.”
On the threat of further regulation, Creutz added, “We believe that any new attempts to regulate video game sales would be quickly struck down by the courts based on this precedent.
“While these concerns are understandable–particularly given the currently emotionally charged environment–we think video game shares are now pricing in much more risk to their business models than actually exists.
“As a result, we think the group now generally represents a buying opportunity ahead of what should be a strong year for the industry in 2013 due to a loaded first half release slate and the likely launch of new Microsoft and Sony game consoles in the back half of the year.”
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