Video gaming industry - bottom up analysis and product analysis
A foray into video gaming industry As a past fervent gamer, I was particular interested in exploring gaming companies. Blizzard, Nintendo, Square Enix, Nexon, Electronic Arts are some of the prominent companies I have looked through on a deliberate basis. Due to my value investing approach, I was never able to find gaming companies with reasonable valuations from its PE, P/CF and free cash flow perspective. I have previously tried to research on Nexon after the release of Maple M and I find the CEO's narrative extremely compelling, as certain games exhibit the branding / franchise model often touted by Warren Buffet .Nonetheless, I lack the accounting understanding in invest in Japan equities, and the moat / stickiness of Nexon gaming franchise model. Personally, I find this video one of the most fundamentally rooted analysis of the gaming industry, and I will revisit the lessons I learnt from this CEO in this post. How to avoid being the dumb money 1) Innovatio