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Jefferies has a ‘black swan’ warning for the video game industry

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(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, click here.)

The addictive nature of video games, designed to keep players in the game for as long as possible, may make investors happy, but some are now warning that a regulatory crackdown could be coming for the industry.

In a new research report, Jefferies said that a growing emphasis on the side effects from hours spent gaming — fueled by design features that encourage users to stay in the game — could lead to increased oversight and headwinds for gaming companies.

“We see addiction and possible related regulatory, litigation or taxation consequences for the video…



Source cnbc.com

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