The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
This newsletter lists the key events (including key game releases and financial news) in March, previews our expectations for April, and provides our views of the current state of the video game industry.
The Wedbush Video Game Index– our market cap-weighted index of video game companies — was up 5 percent in March and slightly outperformed the broader market averages. This was due to strong months for GameStop and two of the covered publishers (although all of the covered publishers were up for the month), as well as buzz around the new consoles, with the Sony (NYSE:SNE) PlayStation 4 unveiling in February and a Microsoft (NASDAQ:MSFT) Xbox Next announcement expected as early as the next few weeks.
The Russell 2000 and the S&P 500 were both up 4 percent for the month as confidence continued to improve, helped by increasing home prices among other factors. Among the covered publishers, Nintendo had the strongest month, up 13 percent as the stock rebounded from recent lows.
The company was helped in part by its presence at SXSW. GameStop was up 12 percent as investors looked ahead to the upcoming console transition. Take-Two (NASDAQ:TTWO) was up 10 percent due to outstanding reviews for new release BioShock Infinite. On a constant f/x basis, the index increased 6 percent. Excluding Nintendo, the index increased 3 percent (on a constant f/x basis as well)…