Results are expected from London-listed computer games publishers Team17 Group PLC (AIM:TM17) and tinyBuild Inc (LSE:TBLD), on Tuesday and Wednesday respectively, following earnings from larger industry players last month.
Numbers from Sony, Microsoft, Nintendo, EA, Activision Blizzard and Take-Two for the end of 2022 highlighted "some weakness and concerns over macro" but there are "some bright spots", said broker Liberum.
"We think that gamers will become more selective and publishers with loved franchises will hold up better than those with a reliance on new releases," the analysts said. "These results reinforce our view."
Though bookings guidance for many of the major publishers has fallen, they noted that consensus still indicates low-single digit revenue growth for 2024, which, if met, would be "a respectable outcome following two very strong years".
"We still think current valuations assume more downgrades, which is too pessimistic."