Very tactical trading the last two weeks due to 1H rebalancing of indices and manager portfolios. However, the underlying concerns are the same but now liquidity and company sustainability have been added. Raising money has now really become a problem even in the public markets. So companies that depend on access to liquidity to grow will struggle.

“Consumer-spending” in all segments has seen a downward trend in 2022. Specifically, in May “spending” decreased by 19 % compared to a year ago and this is the lowest monthly spending that the industry has achieved since February 2020.Gaming this quarter is very cold and as consumer spending continues to decline, and as the holiday season approaches and the after effects of all the restrictions, it may be that people prioritize spending money on outdoor activities. On top of that, summer is usually a quieter period with a lack of releases. Last year, spending for all segments increased by 18 % in the same period, despite the lack of releases.

Overall, summarizing NPD figures, forecasts, lack of releases, we believe that the next quarter will be very weak in games and it may also be difficult to reach sales targets mainly due to the post-covid effects and lack of releases this period.

June 2022 Monthly Update