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The video game industry has been a surprising growth market this year, fueled by popular games and new technology. These companies stood out in 2016.
The gaming sector has performed well in 2016, with many of the top names in the space, from Nintendo(NASDAQOTH:NTDOY) to chipmaker NVIDIA(NASDAQ:NVDA), posting solid returns. Well-received new content, impressive new technology, and renewed ideas about how to get both of those to consumers have helped the sector grow this year. Here were some of the winners in 2016, and what the future could hold for these companies.
Nintendo-Go
Of the content creators and licensors, Nintendo was the best-performing in its group in 2016, with more than a 50% rise through the year to date. Though it was up around 80% before a mid-December sell-off, the company has still had a remarkable year. Nintendo's resurgence follows the company's decision to finally develop a mobile strategy and bring its timeless characters and stories into a modern age.
Nintendo was one of the big winners with the Pokemon Go phenomenon that exploded worldwide this year, and the company announced a new game console called Switch to come out in 2017, which has helped to raise its stock price as well. Most recently, Nintendo launched a new mobile game called Super Mario Run, which topped the download charts during its first weekend, with around 5 million downloads its first day. The game has had some disappointing reviews so far, pushing Nintendo's YTD growth lower, but it's still the early days of Nintendo's new mobile game strategy, so it's certainly not game over yet.
Take-Two Interactive(NASDAQ:TTWO) was also a top performer within the gaming content space, posting a 40% jump in share price this year. Take-Two, maker of popular games such as Grand Theft Auto and NBA 2K17, has grown sales 21% in the most recent quarter, year over year. The company has also been able to adopt a more digitally focused strategy, which has helped margins so that, while earnings fell year over year, they were far above analyst estimates in the most recent quarter.
Platform players
Aside from the actual content creators, some gaming platform companies also performed well this year. Sony(NYSE:SNE) gets a spot on this list largely thanks to the launch of its PlayStation 4 gaming system and more recent launch of a premium virtual reality (VR) bundle that brings VR game play to mass-market gamers. Gaming makes up only about 20% of Sony's total revenue, but it's also its fastest-growing division and could help push the stock higher as more games for its VR headset come out in 2017.
In China, where video game sales are booming and there are an estimated 700 million mobile users and growing, local platform company NetEase (NASDAQ: NTES) has been a winner, with a 19% jump in share price this year. With an assortment of its own online games (among many online services from email to advertising), NetEase also has a deal with content companies such as Activision Blizzard to distribute its games across China, such as one of the hottest games this year, Overwatch, which has done very well in China.
The biggest winners "inside" gaming
While the content and the platforms for playing it on are the face of the gaming industry, the technology inside the devices -- be it gaming consoles, computers, or virtual reality headsets -- are chipmakers such as Advanced Micro Devices(NASDAQ:AMD) and NVIDIA. These two companies have each made big plays so far in 2016, not just in gaming -- though that has been a growth driver for both companies, with each putting out new high-power chips for intense gaming -- but also in autonomous cars, artificial intelligence, connected devices within the Internet of things, and more. As a result of this growth, AMD and NVIDIA stocks are up 280% and 210%, respectively, year to date.
While these content, platform, and chip companies did well this year as the gaming industry continued to grow, bricks-and-mortar video games and gaming hardware seller GameStop (NYSE: GME) had a rough year, which has pushed its stock down 8% so far in 2016. GameStop's business model has struggled to update amid a changing consumer landscape. Looking forward, this trend is likely to grow, as the gaming industry moves to a more e-commerce-focused market, and content creators continually seek a model of digital downloads. The companies with the best content and the most interesting technology are the ones to expect to lead growth in 2017.
Despite Apple not giving any updates whatsoever about the upcoming iMac 2017, people are still leaning towards believing the new iMac is going to be a revolutionary product that will change the way we look at Apple's desktop lines. Here are some reasons why the iMac 2017 will be an ultimate powerhouse machine.
Apple's recently concluded October 2016 event, which took place at the Town Hall in Cupertino and where the new MacBook Pro was eventually unveiled, failed to impress a lot of tech experts who have been relentlessly waiting for the next iMac refresh as the company was unable to convey any much-awaited updates on the highly anticipated all-in-one PC.
Reason for the delay
Rumors that are currently circulating have suggested that Apple did not mention the iMac 2017 in an effort to buy more time in waiting for the much-awaited Intel Kaby Lake processor. Interestingly, the same reasoning was also attributed towards the MacBook Pro 2016's delayed release; however, the notebook still arrived with an Intel Skylake chip.
On the other hand, there have been rumors that a new batch of MacBook Pros is scheduled to hit the store shelves in March of next year.
Potential processor for the iMac
In the midst of the Intel Skylake's issue, Apple was recommended to replace it with the powerful Intel Xeon processor. Both processors feature the LGA-1151 socket standards for the CPU to be able to connect to the motherboard, as per several reports.
Apple's back-up plan
This has been considered more as an alternative, in case Apple is unable to acquire enough supply for the Kaby Lake SoCs next year. Many also believed that this was also the same reason as to why the iMac was not announced back in October.
iMac 2017's Specs, Features & Other Details
While there has been no word yet on whether or not the Apple iMac 2017 will be featuring an Intel Kaby Lake chipset, Apple is likely leaving no stone unturned in their bid to make the upcoming new iMac a powerhouse of a machine.
This move seems quite logical, considering the fact that it will be given a lot of upgrades to be able to house several high-performance tasks such as gaming and photo/video editing.
Will the iMac be VR-ready?
According to several rumors, the upcoming Apple iMac 2017 is also going to either be a VR-compatible device or come with an Intel Kaby Lake hardware support. If this speculation comes to fruition and will be considered as a legitimate information, Apple will then equip the iMac 2017 with the capacity to aptly manage resources and support high-performance tasks.
It is also imperative for Apple to consider GPU support as well. If the Cupertino-based tech giant is moving forward towards a new direction of making the new iMac Virtual Reality-ready, a Polaris 10 or Polaris 11 GPU could definitely complement its potential chipset.
The iMac will be a revolutionary machine
Overall, the iMac 2017 is going to be a revolutionary Apple desktop that will absolutely shock everyone once it rolls out on the first half of next year. According to reports, Apple is already slated to organize another event on March 2017 in order to officially introduce the new and improved iMac. As of now, what we can do is wait for more details coming from Apple and other legit sources.