GME News & Events

"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 release is the Switch 2port of Bethesda's"Indiana Jones and the Great Circle," which first launched for PC and Xbox Series X/S in December 2024. The Switch 2 version is available May 12.EBAY REJECTS GAMESTOP OFFER:eBayannounced that, following a review with the support of its financial and legal advisors, the company's board of directors has determined to reject GameStop'sunsolicited, non-binding acquisition proposal. "The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it," eBay said. "We have concluded that your proposal is neither credible nor attractive."NINTENDO RESULTS:Last Friday, Nintendo reported year-over-year increases in FY26 earnings per share and revenue, with the company saying its Switch 2 console "got off to a good start" following its June 2025 launch. "The March release of Pokemon Pokopia was a factor in driving further hardware sales toward the end of the fiscal year, helping sales volume reach 19.86M units for the full term," the company said. "Looking at software, Mario Kart World, which was released on the same day as the hardware, sold 14.7M units, including bundle sales, and Donkey Kong Bananza, released in July, sold 4.52M units. Pokemon Legends: Z-A - Nintendo Switch 2 Edition, released in October, sold 3.94M units of the packaged version. Unit sales of the downloadable versions of this title and other Nintendo Switch 2 Edition titles are counted in the sales of Nintendo Switch software. Nintendo Switch 2 software unit sales for the fiscal year reached 48.71M units."Looking ahead, Nintendo provided guidance for FY27 net sales and operating profit. However, the game giant decreased its FY27 outlook for Switch 2 unit sales to 16.5M from 19.86M. The guidance cut has given some investors pause, with the stock having fallen over 30% year-to-date. Amid such reported investor pressure, the company also announced Friday that it is raising prices for the Switch 2 in Japan, the U.S., Canada, and Europe, with the U.S. price of the console going from $449.99 to $499.99. Nintendo said such price revisions come "in light of changes in market conditions, and after considering the global business outlook."SONY RESULTS:Sonyalso reported annual results last week, with FY25 earnings per share slipping year-over-year but revenue rising. Sales in the Game & Network Services segment were "essentially flat" year-over-year, though operating income increased 12%, as a decline PlayStation 5 hardware sales was offset by foreign exchange rates and higher revenue from network services and third-party software. The company also noted that PlayStation platform monthly active users in March increased 1% year-over-year to 125M accounts, a record high, while total play time in Q4 increased 1% as well.Meanwhile, Sony reported a 120.1B yen, or roughly $765M, impairment loss due to underperformance of "Destiny" and "Marathon" studio Bungie during the last financial year. "In our studio business, earnings from Bungie's title portfolio did not reach our expectations, so we downwardly revised our business plan and impaired the full amount of the fixed assets related to Bungie except for goodwill," the company said, noting that player reception to "Marathon" is strong. "Going forward, we aim to improve the performance of the game by working to retain highly engaged core users through the introduction of additional content, further improvements in the gameplay experience and expansion of the user base," Sony added. The Fly notes that Sony acquired Bungie in 2022 in a deal valued at $3.6B.EA RESULTS:Additionally, Electronic Artsreleased its quarterly print last week, with EPS coming in above consensus estimates but net bookings missing Wall Street expectations. "Driven by our talented teams and disciplined execution, we delivered a record FY26, highlighted by the incredibly successful launch of our iconic Battlefield franchise," said Andrew Wilson, CEO of Electronic Arts. "With the recent completion of a debt process that was met with strong investor demand and our ongoing constructive engagement with regulators, we look ahead to closing the transaction and the opportunities it will unlock."MORE VIDEO GAME NEWS:SegahasMicrosoft said that Discord Nitro will include aMicrosoft Gaming CEO Asha Sharma said the company will stop development ofCapcom's"Pragmata"in its first 16 days of availability

The major averages were broadly lower near noon as semiconductor stocks pull back following a massive multi-week run. AI-driven enthusiasm pushed the S&P 500 and Nasdaq to fresh records yesterday, but investors are now confronting a harder macro backdrop than previously anticipated. Meanwhile, crude is back above $100 as hopes for a durable U.S.-Iran ceasefire continue to deteriorate, with President Trump describing negotiations as being "on life support."Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:eBay'sboard rejected GameStop'sUnder Armourreportedand provided FY27 earnings guidanceActivist investor Nelson Peltz's Trian Fund Management is seeking investor backing for a bid to take Wendy'sprivate,GoProreportedand withdrew its FY26 guidanceBuzzFeed (BZFD) announced aby Byron Allen's Family Office2. WALL STREET CALLS:Lowe's (LOW)to Buy at CitiAutodeskat Buy from Neutral at BofARothschildToaston risk from DoorDashU.S. rolloutZoomInfoto Underweight at Piper Sandler and to Neutral-equivalent ratings and several other firmsWall Streetof drone-maker Aevexafter its recent IPO3. AROUND THE WEB:Alphabet'sYouTube is looking to connect creators with sponsors to secure funding for shows before they launch, NY Times reportsSoftBankis partnering with South Korea's Cosmos Lab and DeltaX to mass produce next-gen data center batteries in Sakai, Japan at a scale of 1 GWh/year from FY27, Bloomberg reportsMeanwhile, SoftBank is in talks over a massive data center project in France, Bloomberg saysBoeing'ssuccess hinges on its successor to the 737, Bloomberg saysTikTok is making a final appeal to the Court of Justice of the European Union to overturn its designation as a gatekeeper under the EU's Digital Markets Act, Reuters says4. MOVERS:Zebra Technologiesrises after providing areport for Q1SI-Bonehigher after also providing areport for Q1Gitlabfalls after announcing aZoomInfolower afterand reiterated its FY26 outlookOn Holdingsslips after5. EARNINGS/GUIDANCE:Sea LimitedreportedBayerprovided areport for Q1Qnity Electronicsalso provided areport for Q1Tencent Musicreported aHims & Hers Health (HIMS) providedbut raised its FY26 revenue guidanceINDEXES:Near midday, the Dow was down 0.31%, or 155.01, to 49,549.46, the Nasdaq was down 1.51%, or 397.13, to 25,877.00, and the S&P 500 was down 0.82%, or 60.98, to 7,351.86.

Morgan Stanley notes that eBay (EBAY) has announced that it rejected GameStop's (GME) unsolicited bid to buy eBay at $125/share, calling the proposal "neither credible nor attractive." This was unsurprising with eBay only up about 3% since the proposed acquisition was announced, the firm adds. Notably, eBay's board was concerned about more than the price, questioning the deal's financing and leverage along with the impact on the resulting post-deal valuation. Given that, Morgan Stanley believes it is quite possible eBay's board rejects a sweetened offer unless the other issues are cleared. With that said, the firm doesn't believe this is the end of the story and outlines four potential next steps, namely a counteroffer, a direct proposal, failed GameStop Proxy Vote, or other bidder as another company could consider making an offer for eBay now that a potential deal has been floated. Morgan Stanley has an Overweight rating and a price target of $121 on eBay.