The shares of UbiSoft Entertainment SA rose to the highest in almost a three-month period, after the 13-year ban on video-game consoles was lifted by China. The sales of the gaming machines of Sony Corp. and Microsoft Corp. also helped drive the stock. UbiSoft Entertainment SA is one of the most famous producers, editors and distributors of video games worldwide. The company also produces educational software.
On Wednesday, the shares of the producer of “Assassins Creed” gained as much as 7.3% in Paris. This is their biggest intraday jump since October last year, as reported by Bloomberg earlier.
On Tuesday, China lifted its gaming consoles ban, but posts some new rules. A new Shanghai free-trade zone opened in September 2013. This is the place where the consoles are allowed to be made, according to the new rules. In 2000, China banned consoles such as Xbox 360 of Microsoft, Wii U of Nintendo Co. and PS of Sony in order to “protect young people from the perceived corrupting influence of video games”.
One of the analysts working for Natixis – Richard-Maxime Beaudoux said in an e-mail: “It offers further potential for publishers. Its an opportunity, a bonus, but I think the potential is limited because the video game market in Asia is monopolized by local companies and its a market thats very focused on mobile gaming.” On Wednesday Mr. Beaudoux explained that UniSoft shares were boosted by the sales figures of new consoles, which Sony and Microsoft reported earlier this week.
The new consoles were released by Sony and Microsoft in November 2013. This was the fact that provoked the first jump in hardware sales in the industry in a period larger than two years. 4.2 million PlayStation 4 consoles were said to be sold by Sony. Microsoft, on the other hand, reported that it managed to sell more than 3 million units of the Xbox One device in 2013.
One of the analysts working for Exane BNP Paribas – Jean-Christophe Liaubet wrote: “These strong initial sales of next-generation consoles in positive news for the video game industry and UbiSoft”.
Electronic Arts Inc., which is a smaller French rival of UbiSoft Entertainment SA announced that it expects to be given an opportunity to boost its market share.
According to Bloomberg, the current share price of UbiSoft Entertainment SA is 0.14% up, and its one-year return rate is 41.14% up.
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