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Published on: May 29, 2024

The big reBuild

tinyBuild has a newly strengthened balance sheet, support from games royalty Atari, a lower run-rate cost base and a slate of new titles featuring ‘bangers’ (says Steam). The new development model gives 1,000-hour games from an indie cost model. Evidence is building that it is time to draw a line under 2023, an ‘annus horribilis’ across the US$211.2bn video games industry when it buckled under the strain of weak demand as a soggy consumer environment led to a funding desert and cancelled game debuts, with inevitable consequences for revenue, jobs, executive reshuffles and industry-wide restructuring. If you invested £1 in UK video gaming stocks in January 2023, you would be left with 45p now. Through industry-wide restructuring, tinyBuild retains emphasis on its IP, expanding title reach, debuts and monetising its extensive back-catalogue. Nervousness still pervades, competitor performance is mixed, but we explore why investors should be encouraged: (i) tinyBuild’s ‘best foot forward’ growth orientation, coupled with recent positive announcements like Duckside, Kingmakers and Level Zero, (ii) the clear valuation upside, and (iii) smatterings of industry evidence illustrating a slowly improving backdrop.

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