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15 handpicked stocks

The Software Shift: Beyond The Console Price Hike

Nintendo is increasing the price of its Switch consoles, a move that could shift consumer spending from hardware to software. This creates a potential opportunity for video game publishers and digital entertainment platforms.

Author avatar

Han Tan | Market Analyst

Published on August 2

Your Basket's Financial Footprint

Interpretation of the basket's market capitalisation and concise investor guidance consistent with FCA rules.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and more stable returns, aligning closer with broad-market performance.
  • Use as a core portfolio holding for diversification, not as a short-term speculative position.
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Total Market Cap
  • EA: $50.01B

  • TTWO: $48.01B

  • GME: $10.21B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Nintendo's unusual price increase for its ageing Switch console could trigger a shift in consumer spending patterns. As hardware becomes more expensive, gamers may redirect their budgets towards software and digital content, creating opportunities for publishers and platforms in the gaming ecosystem.

2

What You Need to Know

This group focuses on companies positioned to benefit from potential changes in gaming spending habits. It includes major video game publishers, digital distribution platforms, and developers specialising in in-game content - all areas that could see increased revenue as hardware costs rise.

3

Why These Stocks

These companies were handpicked by professional analysts based on their exposure to the gaming software ecosystem. They represent firms that could directly benefit if consumers shift their discretionary spending from expensive hardware to games and digital experiences.

Why You'll Want to Watch These Stocks

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Gaming's New Economics

Nintendo's price hike signals a shift in the gaming industry's value chain. As hardware becomes pricier, software companies could capture more of consumers' gaming budgets.

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Digital Revenue Boost

When console prices rise, gamers often spend more on digital content and in-game purchases. These companies are perfectly positioned to benefit from that trend.

Market Timing Opportunity

This shift is happening right now, ahead of the Switch 2 launch. Early positioning in software-focused gaming stocks could capture this emerging trend.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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