Back to top

Image: Bigstock

Warner Bros. Discovery (WBD) to Launch Hogwarts Legacy Game

Read MoreHide Full Article

Warner Bros. Discovery (WBD - Free Report) recently announced that it will be launching Hogwarts Legacy on its gaming platform on Feb 10 across PlayStation 5, Windows and Xbox X/S. It will also be made available on PS4 and Xbox One on Apr 4 and Nintendo Switch on Jul 25.

This single-player video game is a much-awaited action-role-playing game based on the Harry Potter novels. Its official trailer, which was launched six days ago, recorded 3.3 million views already, indicating the excitement fans of the franchise have toward the game, which is set in their highly cherished fictional universe.

The game would allow players to create a character and choose their appearance, house and gender, as well as their voice, body type and accessories. This will give a very indulging and realistic experience to the players and help Warner Bros. Games gain significant engagement from it.

Warner Bros. Discovery Expands Game Slates to Boost Growth

Warner Bros. Games released some highly attractive games in 2022, which performed well. The Lego Star Wars: The Skywalker Saga, which was an action-adventure video game, released on Apr 5 and recorded sales of 5 million units, per Video Game Stats.

In addition to this, Multiversus Season 2, which was released on Jul 19, sold 2.8 million units, generating revenues of $11.8 million, per VG Insights.

The gaming industry is expected to show growth in the long term. Per Globaldata, the video games market could touch $305 billion in 2025, at a compound annual growth rate of 13%. This further creates an opportunistic market for Warner Bros. Discovery to tap into.

Warner Bros. Games has also scheduled the release of another game in 2023 along with Hogwarts Legacy. Suicide Squad: Kill the Justice League will be an action-adventure fighting game where the Suicide Squad will be seen fending off an alien invasion.

These exciting games are expected to attract players, which will boost Warner Bros. Discovery’s user base and revenues.
 

However, Warner Bros. Games has only been focusing on console games and neglecting mobile games, which might be a cause of worry for the company. Per Spicework, 84% of the respondents preferred playing mobile games while 36% chose console/handheld games and 30% played on a PC.

Warner Bros. Discovery not taking advantage of the comfort and cost efficiencies a player has while playing games on mobile could serve as a barrier to growth in the company’s gaming division.

Its share price has declined 48.7% in the past year compared with the Zacks Consumer Discretionary sector, which fell 21.4% in the same time frame.

Zack Rank & Other Stocks to Consider

Warner Bros. Discovery currently has a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the same sector are Las Vegas Sands (LVS - Free Report) Stride (LRN - Free Report) and BJ’s Wholesale Club (BJ - Free Report) , each sporting a Zacks Rank #1.

Shares of Las Vegas Sands have gained 24.2% in the past year. The Zacks Consensus Estimate for earnings is pegged at 17 cent per share, which has increased by 88% over the past 30 days.

Shares of Stride have gained 17.7% in the past year. Its earnings are estimated to be $1.08 per share, which increased 13.6% over the past 30 days.

Shares of BJ’s Wholesale Club have increased 15.2% in the past year. Its earnings are estimated to be 88 cents per share, which has been constant over the past month.

 

Published in