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Benzinga
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EXCLUSIVE: Video Game ETF CEO Says Switch 2 Is 'Blockbuster,' EA Gains From Sports, GameStop Doesn't Pass ETF Test

1. Nintendo's Switch 2 launched at $449, selling 3.5 million units in four days. 2. EA sports titles are significant revenue drivers, with upcoming college basketball game potential. 3. Nintendo's strategy involves monetizing IP beyond games, enhancing revenue streams. 4. EA's advantage lies in expanding its sports game library amid college sports growth. 5. GameStop not included in ETF due to shrinking revenues and index tracking criteria.

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FAQ

Why Bullish?

EA's strong position with sports titles could see positive revenue impact, similar to past successes.

How important is it?

EA's strong reliance on annual sports titles can lead to significant revenue increases from new game releases.

Why Short Term?

Immediate sales impact from new titles like college basketball could boost EA's revenues quickly.

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