Video Games Are Changing. Expect Investors to Pay Less, for Now
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As the video game model evolves, Morgan Stanley expects the market to pay less for publishers until they develop a better sense of what works.
The success of free-to-play games like Fortnite by Epic Games and recently released Apex Legends by Electronic Arts Inc. are changing player behavior, as gamers may not see the utility of paying $60 for something they can get for free, analyst Brian Nowak wrote. And there’s a trend of players enjoying the best games for longer, so success relies on offering the best content throughout the life of a game, he said.