How Is This Even Legal?! 🚨

Table of Contents

How Is This Even Legal?! 

Activision Blizzard just made history with a new mobile game, and investors are making money off it. The game is free, so what’s its secret? Very controversial micro-transactions!

As smartphones become more powerful gaming devices, records for first-week mobile downloads keep getting broken. In 2016, Nintendo’s ‘Pokémon Go’ managed to lure 85 million adults into oncoming traffic to hunt 90s TV show monsters. That’s impressive. But it’s not as impressive as the later ‘Mario Kart Tour,’ which managed 90 million downloads in its first week of launch. Californian developer Activision Blizzard (ATVI), however, just raised the bar yet again. ‘Call of Duty: Mobile’ enjoyed 100 million downloads this week!

Not only is the volume there, but so are the margins. Activision Blizzard is tipped to earn the lion’s share of a $65-billion-dollar estimate this year for mobile gaming. Incredible, especially considering ‘Call of Duty: Mobile’ is free! What’s its secret?

Gamers, regardless of age, can pay-to-win. Using mom or dad’s credit card to buy 20,000 credits, “V-bucks,” or “keys,” they can exchange that in-game currency for in-game advantages. Game studios are also starting their users off young with gambling, too. In almost every free online game today, kids’ parents are paying to roll the dice for a 0.010% chance of winning something entirely cosmetic. Wow, what a sense of accomplishment. How is this even legal?!

Investors in the industry have known for some time how iffy these micro-transactions and loot box business models can be. However, they’re crucial to keeping stocks up, and companies refuse to self-regulate. While the UK and Australia have turned a blind eye to the practice, Belgium now classifies this as gambling, and US regulators are looking into the issue as well. North America is a cornerstone market for Activision, and its stock will be tied closely to how that American inquest plays out. Game on!

Share:
More Posts
PGA Tour Enters Investment Talks 💪

As reported on Thursday, both Endeavor Group and Fenway Sports have displayed interest and begun discussions to provide investment in the PGA Tour.

Nike Just Didn’t Do It 📉

Providing one of the biggest earnings reports of the week, $140 billion shoe and clothing retailer Nike posted a significant slip.

Market Recap – September 28th 💰

After the 10-year Treasury yield bond fell off from its 15-year high, investors added some value back into the market, focusing all short-term attention on Friday’s PCE price index reading.

The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.