[CNBC Television] Consumer wallets are primed to return to gaming: Analyst
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Gamblers returned to casinos last weekend, just as many gaming stocks rallied, topped by MGM Resorts which was up more than 30% last week. Kevin McCarthy, senior vice president at Neuberger Berman, joins “Squawk Box“ to discuss.
The excitement surrounding VALORANT, a new game by Tencent-owned Riot Games, could cement Tencent’s acquisition of the games developer as one of the best tech deals ever inked.
That’s according to Roundhill Investments CEO Will Hershey as VALORANT launched on Tuesday. It’s Riot Games’ attempt at entering the free-to-play online first-person shooter (FPS) games market, where two teams of five players face off against each other with characters known as “agents,” each with their own special abilities.
It’s also the developer’s first game with a whole new IP that deviates from the League of Legends universe, which Riot introduced to gamers over 10 years ago. Since then, League of Legends has grown into a worldwide sensation, and that has fueled the anticipation and curiosity around Riot’s new release.
The developer revealed last week that VALORANT’s closed beta pulled in an average of almost 3 million players daily. It also set record stream viewership numbers thanks to a beta key drop campaign on Twitch, driving players to watch hours upon hours of VALORANT gameplay in hopes of getting early access to the game.
This makes VALORANT not only a likely strong addition to the Riot Games portfolio, but it would also build on the immense success of the multiplayer online battle arena game (MOBA) League of Legends that initially prompted Tencent to take a stake in the developer.
Tencent originally paid $400 million for a 93% stake in Riot Games in 2011, a year after the games developer released League of Legends. The company bought the remainder of Riot Games four years later for an undisclosed amount.
Even 10 years after its launch, League of Legends is the most-played PC game in the world, drawing in about 8 million concurrent players daily while still hauling in over a $1 billion for Riot Games every year. The game has reportedly generated $20 billion in revenue over its lifetime.
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