Keywords Studios PLC (AIM:KWS, OTC:KYYWF), the video game developer, is well-positioned to excel should the gaming industry pick up some momentum in the next couple of years, analysts at Shore Capital Group (LSE:SGR)l said.
During the pandemic, with people stuck at home and with little to do, the video game industry soared with Keywords Studios ending up being one of the largest benefiters lifting more than 100%.
However, in the years after – when people started to socialise in person, return to high streets and work back in offices – the gaming industry stumbled.
Trading in the sector fell, numerous game titles were delayed or cancelled and shares in listed publishers, like tinyBuild, plummeted.
Newzoo, a leading video game data and market researcher, thinks in the next couple of years the industry could begin to grow again as delayed games are finally released and the shift to next-generation consoles comes to an end.
By 2025, it expects the entire industry to have expanded by 15% and by 17% for the console and PC market.
“[Keywords]is well placed to capitalise on wider industry growth, including increased content demand and the adoption of new technology, such as AI to create more efficient processes and potential new revenue streams,” Shore Capital said.
The London-listed company already expressed its desire to work alongside AI to help improve efficiency.
Speaking at a fireside chat chief executive officer Bertrand Bodson said AI for the industry as a whole “is an incredible force for good.”
Shares in Keywords opened 2% higher on Wednesday, trading at around 1,700p.
Shore Capital rates the stock as a ‘buy’.