Sector: Communication Services | Focus: Interactive Home Entertainment
HQ: New York City, New York
Financial Risks
The company faces risks from fluctuating interest rates, impacting short-term investments and variable-rate debt. Foreign currency exchange rate volatility, particularly in the Turkish Lira, poses a risk. Retailer performance and economic conditions are also potential risks, including the possibility of uncollectible accounts receivable and increased competition. The company's reliance on a few key products and platforms exposes it to potential declines in demand. Finally, legal proceedings and potential losses from litigation are a risk.
Financial Upside
The company anticipates continued growth in the interactive entertainment industry, particularly in Asia. New product releases, including *Grand Theft Auto VI*, are expected to drive revenue. The acquisition of Gearbox and other companies could enhance the company's creative talent and portfolio. Digital distribution and recurrent consumer spending are expected to continue as key revenue drivers. Increased interest rates and the company's debt issuance could also lead to increased interest income.
