(This story is a part of the Weekend Transient version of the Night Transient e-newsletter. To enroll in CNBC's Night Transient, click on here.)The
(This story is a part of the Weekend Transient version of the Night Transient e-newsletter. To enroll in CNBC’s Night Transient, click on here.)
The addictive nature of video video games, designed to maintain gamers within the recreation for so long as doable, could make buyers completely satisfied, however some are actually warning {that a} regulatory crackdown could possibly be coming for the business.
In a brand new analysis report, Jefferies stated {that a} rising emphasis on the uncomfortable side effects from hours spent gaming — fueled by design options that encourage customers to remain within the recreation — may result in elevated oversight and headwinds for gaming firms.
“We see dependancy and doable associated regulatory, litigation or taxation penalties for the online game sector as a ‘black swan’ – largely not mentioned or discounted,” Jefferies analyst Simon Powell stated.
However not everybody sees it that method.
Strategic Wealth Companions’ president and CEO Mark Tepper stated that whereas regulation could possibly be a headwind for Chinese language publishers, United States-based builders are comparatively immune. As an illustration, he stated that Activision Blizzard, which he owns, solely has 13% publicity to Asia and that the majority of it’s by way of the sport Sweet Crush.
Relating to regulation within the U.S., which some have referred to as for, Cerity Companions’ Jim Lebenthal stated he is not nervous. The issue in defining what precisely “dependancy” means, coupled with…