Nintendo Switch 2 Sales Reach 196,359 Units in April
"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.NEW RELEASES:This week's most notable new release is IO Interactive's action-adventure game "007 First Light," which releases for PC, PlayStation 5, and Xbox Series X/Son May 27, with a Nintendo Switch 2version slated for release later this year. Additionally, Nintendo is releasing a photo-doctoring mobile app called "Pictonico" for iOS and Android on May 28.CIRCANA:Last week, Circana analyst Mat Piscatella said that U.S. video game spending totaled $4.3B in April 2026, growing 3% when compared to a year ago. Year-to-date 2026 spending finished the month 5% higher than 2025, at $18.8B. Gains across content and hardware offset declines in accessories. April hardware spending increased by 34% when compared to a year ago, to $261M. Spending on Nintendo Switch 2 hardware offset declines seen across Switch, down 69% versus April 2025, Xbox Series, down 43%, and PlayStation 5, down 30%. Nintendo Switch 2 was again the best-selling hardware platform across both units and dollars for April and 2026 year-to-date, with PlayStation 5 again ranking 2nd across both measures and time periods. After 66 months in market, PlayStation 5's lifetime installed base finished April tracking 2% ahead of PlayStation 4 on a time aligned basis. Nintendo Switch 2 led the sales pace of the original Nintendo Switch by 11%. Nintendo monthly dollar share of video game hardware spending finished April 2026 at its highest point since July 2025.Content spending finished April at $3.8B, growing 2% when compared to a year ago, noted Piscatella. Year-to-date content spending was 3% ahead of 2025's pace, at $16.7B. April spending on Console content was the primary driver of overall content growth as spending increased by 21% compared to a year ago. Subscription spending grew 13% year-on-year, while PC Content was up slightly. Nintendo's "Tomodachi Life: Living the Dream" was the best-selling game of April, delivering over $41M in physical and projected digital spending. "Tomodachi Life: Living the Dream" debuted as the 9th best-selling game of 2026 year-to-date. Helped by "Tomodachi Life: Living the Dream," consumer spending on new physical software grew 44% in April when compared to a year ago, to $96M. Year-to-date spending on new physical software increased by 9%. Capcom's"Pragmata" ranked as the 2nd best-selling game of April 2026. Pragmata was the month's best-seller on PlayStation platforms, placed 2nd on the PC aggregated storefronts chart and ranked 3rd on Xbox. It was among the top 15 sellers of the month on Nintendo platforms.TAKE-TWO:Meanwhile, Take-Tworeported Q4 results last week, with net bookings for the period coming in slightly above expectations, though the company did provide conservative outlooks for Q1 and FY27. Of note, however, Take-Two CEO Strauss Zelnick confirmed that the company's highly anticipated game "Grand Theft Auto VI" will release on November 19, 2026. "Our Fiscal 2026 performance was exceptional and exceeded our initial expectations at every label," Zelnick said, "We believe Fiscal 2027 will establish new record levels of operating performance driven by the November 19th launch of Grand Theft Auto VI, along with strong execution across our portfolio. We expect to sustain this higher level of scale, generate strong cash flows, and deliver long-term shareholder value as we release our robust development pipeline, continue to optimize our live services and capitalize on new business opportunities."UBISOFT RESULTS:Ubisoftalso reported Q4 results last week, with the French game maker reporting a 54% year-over-year drop in net bookings for the period. The company noted the comparison to the same period last year, during which "Assassin's Creed Shadows" released, but also confirmed its FY2026-2027 net bookings guidance for a decline in high single digits. "The Group expects a significantly stronger and diversified pipeline of content to come over FY2027-28 & FY2028-29, supported by releases across its major brands including Assassin's Creed, Far Cry and Ghost Recon as well as an acceleration of its Live services driven by Rainbow Six Siege," Ubisoft said. "In this context, the Group expects to get back to Free Cash Flow generation and positive non-IFRS EBIT in FY2027-28 and generate robust Free Cash Flow in FY2028-29, with positive cumulated Free Cash Flow during the FY2026-27 to FY2028-29 period."SWITCH 2 SALES/OUTPUT:Nintendo's Switch 2 was the top-selling gaming console in Europe in April 2026, with 196,359 units sold, bringing the console's lifetime unit sales in Europe to 4.53M, VGChartz's William D'Angelolast week, citing VGChartz estimates. Meanwhile, Bloomberg's Takashi Mochizukithat the Japanese gaming giant has asked partners and suppliers to make roughly 20M Switch 2 units in the year through March, approximately 20% more consoles than the company guided for earlier this month. The latest output plan is not final and could change based on demand, according to people familiar with the matter.BUNGIE:Sony's Bungiein a statement that it is concluding active development for "Destiny 2," which first launched in 2017 and has had regular content updates ever since. Following the news, Bloomberg's Jason Schreierthat Bungie plans to lay off a significant number of workers as it concludes active development on "Destiny 2." The company, which also released multiplayer shooter "Marathon" earlier this year, does not have a new project lined up for the development team behind "Destiny 2," and does not plan to immediately begin production on "Destiny 3," Schreier noted.MORE VIDEO GAME NEWS:Embracerannounced thethe group into two publicly listed companies, through the spin-off of Fellowship Entertainment with a listing on Nasdaq Stockholm planned for calendar year 2027Nintendo's "Tomodachi Life: Living the Dream" was the top-selling physical video game in Japan for the week of May 11-17,Microsoft's "Forza Horizon 6" has already sold 5M units,Meanwhile, Microsoft has agreed to pay $250M to settle investor litigation over its massive takeover Activision Blizzard,Hasbrohas canceled a "Dungeons & Dragons" game from independent video game maker Giant Skull,
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IMAX Explores Sale, Sparks Market Buzz
- Stock Surge: IMAX shares rose approximately 14% on sale speculation, reaching nearly $39 per share with a market cap of about $2.1 billion, indicating strong market interest in potential buyers from Hollywood studios and tech companies.
- Potential Buyers: Analysts suggest that potential acquirers of IMAX include Netflix, Apple, and Sony, all of which possess strong technological and content capabilities, and acquiring IMAX could enhance their competitive edge in the premium cinema market.
- Financial Performance: IMAX generated a record $1.28 billion at the global box office last year, a more than 40% increase, with projected revenue of $448 million in 2026, showcasing robust business growth potential despite its valuation not returning to pre-pandemic levels.
- Market Expansion: IMAX plans to install 160 to 175 new systems by 2026 and is partnering with countries like China, Japan, and South Korea to screen local language content, further reducing dependence on any single market and enhancing its competitive position globally.
IMAX Shares Surge on Speculation of Potential Sale
- Stock Surge: IMAX shares rose approximately 14% on Friday, reaching nearly $39 per share with a market capitalization of around $2.1 billion, reflecting positive market sentiment regarding the company's potential sale and investor interest in IMAX as a strategic acquisition target.
- Preliminary Talks: Sources indicate that IMAX has engaged in 'preliminary talks' through intermediaries, although no formal acquisition proposals have been made, suggesting the company is exploring strategic options while remaining open to future opportunities.
- Attractiveness Analysis: Wall Street analysts broadly view IMAX as an attractive asset, with Wedbush analysts noting that IMAX's globally recognized brand and asset-light licensing model are currently undervalued, potentially drawing interest from buyers including Netflix, Apple, and Sony.
- Future Outlook: IMAX anticipates installing 160 to 175 new systems by 2026 and plans to expand screenings of local language content globally, further reducing dependence on any single market, thereby laying the groundwork for future box office growth and margin expansion.
Spotify Unveils 2030 Strategic Guidance at Investor Day
- 2030 Revenue Forecast: At its first investor day, Spotify projected a mid-teens compounded annual growth rate for revenue by 2030, with gross margins expected between 35% and 40%, indicating strong confidence in future growth.
- Significant User Growth: Since 2022, Spotify has added over 340 million new users and grown its subscriber base by more than 110 million, demonstrating its ability to attract users and expand market share in the competitive music streaming landscape.
- Strategic Restructuring: Under the leadership of new co-CEOs Gustav Söderström and Alex Norström, Spotify is undergoing a major reshuffle to address significant changes in the music industry, particularly the impact of AI technologies.
- Clear Long-term Goals: Spotify identifies reaching 1 billion subscribers and $100 billion in revenue as its
Sony Raises PlayStation Plus Subscription Prices Amid Market Pressures
- Subscription Fee Increase: Sony has announced a 10% to 12% increase in PlayStation Plus subscription prices, raising the one-month fee from $9.99 to $10.99 and the three-month fee from $24.99 to $27.99, reflecting the company's pricing strategy under ongoing market pressures.
- Hardware Price Adjustments: Prior to this, Sony raised the price of the PlayStation 5 by $100 and the PlayStation 5 Pro by $150 on April 2, indicating the company's considerations of cost pressures and profitability in the global economic landscape.
- Market Environment Impact: Sony attributes the subscription fee hike to “ongoing market conditions,” including RAM shortages, increased tariffs, and rising data storage costs, highlighting the company's response to complex supply chain challenges.
- Future Outlook: While annual subscription prices remain unchanged for now, Sony's pricing strategy may affect user renewal rates and market competitiveness, especially in the increasingly competitive gaming industry.
Summer Box Office Off to a Strong Start
- Significant Box Office Growth: Domestic ticket sales topped $161 million over the weekend, marking an almost 88% increase compared to the same three-day period in 2025, indicating a strong audience interest and signaling a recovery in the summer movie market.
- Strong Performers: Disney's 'The Devil Wears Prada 2' grossed $41.6 million in its second week, while Warner Bros.' 'Mortal Kombat II' debuted with $38.5 million, showcasing the strong appeal and competitive positioning of new releases in the market.
- Stable Holdover Films: 'The Super Mario Galaxy Movie' and 'Project Hail Mary' demonstrated impressive performance in their sixth and eighth weeks, with ticket sales declining only 45% and 23% respectively, reflecting strong word-of-mouth and sustained audience interest.
- Optimistic Annual Box Office Outlook: As of Sunday, the 2026 box office has generated $3.02 billion, a 16% increase from the same period last year, and although still below 2019's $3.8 billion, the upcoming blockbuster releases are expected to further boost ticket sales.
GameStop's $56B eBay Bid Rejected as Unviable
- Acquisition Proposal Rejected: eBay has officially rejected GameStop's unsolicited $56 billion acquisition bid, labeling it as 'neither credible nor attractive,' with concerns over a significant funding gap and high debt load, which could undermine GameStop's market confidence.
- Financing Challenges Emerge: Despite CEO Ryan Cohen's commitment to provide $20 billion in financing, analysts warn that GameStop's $10 billion market cap makes acquiring a $48 billion giant nearly impossible without extreme equity dilution, highlighting the fragility of its financing capabilities.
- Market Reaction Tepid: Following eBay's rejection, GameStop's stock fell 2.37% in pre-market trading, indicating investor concerns about its acquisition ability, which may impact its future stock performance and market positioning.
- Unclear Strategic Direction: eBay's board reiterated its focus on luxury goods and trading cards, believing this will yield superior shareholder returns, while GameStop's acquisition intentions could distract from its core resources and strategic focus.
IMAX Explores Sale, Sparks Market Buzz
- Stock Surge: IMAX shares rose approximately 14% on sale speculation, reaching nearly $39 per share with a market cap of about $2.1 billion, indicating strong market interest in potential buyers from Hollywood studios and tech companies.
- Potential Buyers: Analysts suggest that potential acquirers of IMAX include Netflix, Apple, and Sony, all of which possess strong technological and content capabilities, and acquiring IMAX could enhance their competitive edge in the premium cinema market.
- Financial Performance: IMAX generated a record $1.28 billion at the global box office last year, a more than 40% increase, with projected revenue of $448 million in 2026, showcasing robust business growth potential despite its valuation not returning to pre-pandemic levels.
- Market Expansion: IMAX plans to install 160 to 175 new systems by 2026 and is partnering with countries like China, Japan, and South Korea to screen local language content, further reducing dependence on any single market and enhancing its competitive position globally.
IMAX Shares Surge on Speculation of Potential Sale
- Stock Surge: IMAX shares rose approximately 14% on Friday, reaching nearly $39 per share with a market capitalization of around $2.1 billion, reflecting positive market sentiment regarding the company's potential sale and investor interest in IMAX as a strategic acquisition target.
- Preliminary Talks: Sources indicate that IMAX has engaged in 'preliminary talks' through intermediaries, although no formal acquisition proposals have been made, suggesting the company is exploring strategic options while remaining open to future opportunities.
- Attractiveness Analysis: Wall Street analysts broadly view IMAX as an attractive asset, with Wedbush analysts noting that IMAX's globally recognized brand and asset-light licensing model are currently undervalued, potentially drawing interest from buyers including Netflix, Apple, and Sony.
- Future Outlook: IMAX anticipates installing 160 to 175 new systems by 2026 and plans to expand screenings of local language content globally, further reducing dependence on any single market, thereby laying the groundwork for future box office growth and margin expansion.
Spotify Unveils 2030 Strategic Guidance at Investor Day
- 2030 Revenue Forecast: At its first investor day, Spotify projected a mid-teens compounded annual growth rate for revenue by 2030, with gross margins expected between 35% and 40%, indicating strong confidence in future growth.
- Significant User Growth: Since 2022, Spotify has added over 340 million new users and grown its subscriber base by more than 110 million, demonstrating its ability to attract users and expand market share in the competitive music streaming landscape.
- Strategic Restructuring: Under the leadership of new co-CEOs Gustav Söderström and Alex Norström, Spotify is undergoing a major reshuffle to address significant changes in the music industry, particularly the impact of AI technologies.
- Clear Long-term Goals: Spotify identifies reaching 1 billion subscribers and $100 billion in revenue as its
Sony Raises PlayStation Plus Subscription Prices Amid Market Pressures
- Subscription Fee Increase: Sony has announced a 10% to 12% increase in PlayStation Plus subscription prices, raising the one-month fee from $9.99 to $10.99 and the three-month fee from $24.99 to $27.99, reflecting the company's pricing strategy under ongoing market pressures.
- Hardware Price Adjustments: Prior to this, Sony raised the price of the PlayStation 5 by $100 and the PlayStation 5 Pro by $150 on April 2, indicating the company's considerations of cost pressures and profitability in the global economic landscape.
- Market Environment Impact: Sony attributes the subscription fee hike to “ongoing market conditions,” including RAM shortages, increased tariffs, and rising data storage costs, highlighting the company's response to complex supply chain challenges.
- Future Outlook: While annual subscription prices remain unchanged for now, Sony's pricing strategy may affect user renewal rates and market competitiveness, especially in the increasingly competitive gaming industry.
Summer Box Office Off to a Strong Start
- Significant Box Office Growth: Domestic ticket sales topped $161 million over the weekend, marking an almost 88% increase compared to the same three-day period in 2025, indicating a strong audience interest and signaling a recovery in the summer movie market.
- Strong Performers: Disney's 'The Devil Wears Prada 2' grossed $41.6 million in its second week, while Warner Bros.' 'Mortal Kombat II' debuted with $38.5 million, showcasing the strong appeal and competitive positioning of new releases in the market.
- Stable Holdover Films: 'The Super Mario Galaxy Movie' and 'Project Hail Mary' demonstrated impressive performance in their sixth and eighth weeks, with ticket sales declining only 45% and 23% respectively, reflecting strong word-of-mouth and sustained audience interest.
- Optimistic Annual Box Office Outlook: As of Sunday, the 2026 box office has generated $3.02 billion, a 16% increase from the same period last year, and although still below 2019's $3.8 billion, the upcoming blockbuster releases are expected to further boost ticket sales.
GameStop's $56B eBay Bid Rejected as Unviable
- Acquisition Proposal Rejected: eBay has officially rejected GameStop's unsolicited $56 billion acquisition bid, labeling it as 'neither credible nor attractive,' with concerns over a significant funding gap and high debt load, which could undermine GameStop's market confidence.
- Financing Challenges Emerge: Despite CEO Ryan Cohen's commitment to provide $20 billion in financing, analysts warn that GameStop's $10 billion market cap makes acquiring a $48 billion giant nearly impossible without extreme equity dilution, highlighting the fragility of its financing capabilities.
- Market Reaction Tepid: Following eBay's rejection, GameStop's stock fell 2.37% in pre-market trading, indicating investor concerns about its acquisition ability, which may impact its future stock performance and market positioning.
- Unclear Strategic Direction: eBay's board reiterated its focus on luxury goods and trading cards, believing this will yield superior shareholder returns, while GameStop's acquisition intentions could distract from its core resources and strategic focus.
