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What happened
Actions of the semiconductor specialist Nvidia (NASDAQ: NVDA) – already one of the biggest names in video games – got a bit bigger this morning when the company announced that it had landed a new partner for its online gaming service Nvidia GeForce NOW.
In today’s press release, Nvidia states Electronic arts (NASDAQ: EA) will make his “hit games” Battlefield 1 Revolution, Mirror’s Edge Catalyst, Unravel Two, Dragon Age: Inquisition, and Apex Legends available on Nvidia’s cloud gaming service.
Shares of the chip giant were up 2.2% at 10:05 a.m. EDT in response.
Image source: Getty Images.
So what
This is good news for Nvidia, which lost several top partners last year after refusing to enter into revenue-sharing agreements with them – and as some of its partners went on their own to develop systems. of independent online games. But GeForce NOW seems to have gained a second life in 2021 as its number of subscribers has doubled.
Today, the company claims that more than 12 million gamers spend more than 20 million hours of gaming each month on GeForce NOW, playing on servers located in 30 different data centers operating in more than 70 countries. By partnering with Nvidia in this phase of expansion, Electronic Arts is seizing “an opportunity for Electronic Arts to instantly put some of their most beloved franchises into the hands of a rapidly growing global audience,” said Jeff Fisher, Nvidia senior vice president for GeForce.
Now what
It’s also a huge opportunity for Nvidia, which now has a whole new slew of games (and more) with which to attract new customers – and keep its existing 12 million subscribers from getting bored and running out of business. ‘misplace to play games on Alphabetthe Stadia service of, for example, or Microsoftis xCloud.
Nothing is more dangerous than a bored player. Luckily for Nvidia, that shouldn’t be a problem now.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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