Video Games Insider – Pokemon Red and Zelda

Welcome to the latest issue of Video Games Insider – FREE VERSION

Today I’m going to look into two assets that are IPOing this week:

• A copy of Pokemon Red that is IPOing at Otis on Tuesday, July 20th, 2021 at 12 PM EST. It is currently available to VIP members.
• A copy of The Legend of Zelda that is IPOing at Rally Road on Friday, July 23rd, 2021 at 12 PM EST.

Follow me on Twitter for my latest insights and analysis.

Pokemon Red WATA Gameboy 9.6 A++

About the Asset

I wrote about Pokemon Red in May when a similar copy IPO’d at Rally Road. Please see that article for more background about the game – but you should know that it is a later release of the Pokemon series but does have the popular character Charizard on the cover.

This copy is graded 9.6 A++ and crucially, is a mid-production “Rattata copy.” Otis paid $72,000 for this copy.

About the Drop

This asset will drop on Otis at 12 PM EST on July 20th for $85,000. There is no retained equity. Otis has just introduced live trading so it is unclear what the time between IPO and trading will be going forward.

Add IPO to calendar

Recent Sales and Current Valuation

[Detailed Valuation available to Insiders Only]

Category Strength

The Video Game Cartridges category posted a 12% ROI in Q2 2021.

Subcategory Strength

[Insiders Only]

Subcategory Risk

[Insiders Only]

Past Asset Growth

[Insiders Only]

Growth Outlook and Future Catalysts

The video game market has been very hot but the Pokemon games (Yellow and Blue as well) have mostly stayed flat, especially the mid-production varieties. I’m bullish on the market overall and I think the Pokemon games have enough cachet to retain demand but the Rattata versions are unlikely to be record-setters.

Verdict

[Full Evaluation for Insiders Only]

The Legend of Zelda 1987 NES WATA 9.4 B+

About the Asset

I touched upon the Zelda series in May when I wrote about the Ocarina of Time – the notable N64 Zelda game. In short, the Legend of Zelda series is one of the most critically and commercially successful video game franchises in history — and the original 1987 NES game The Legend of Zelda was the one that started it all. If you’re of my generation you’ll remember the gold cartridge and the birds-eye view gameplay and the open-ended world that pretty much revolutionized what video games could be.

This is a early copy with a Round Seal of Quality (SOQ), but notably it does have a Rev-A stamp (the earliest copies have no Rev-A stamp). It is graded 9.4 B+ by WATA. Rally paid $100,000 for this copy.

About the Drop

This asset will drop on Rally Road at 12 PM EST on July 23rd for $115,000. There is no retained equity. Rally has been scheduling their IPOs for trading around 4-5 months after they fund.

Add IPO to calendar

Recent Sales and Current Valuation

[Detailed Valuation available to Insiders Only]

Category Strength

The Video Game Cartridges category posted a 12% ROI in Q2 2021.

Subcategory Strength

[Insiders Only]

Subcategory Risk

[Insiders Only]

Past Asset Growth

[Insiders Only]

Growth Outlook and Future Catalysts

While this is not the earliest variant and won’t see the same kind of record-breaking sales as the No-Rev A version, this is still rare in its own right and should remain quite desirable. The popularity of the Zelda series has been enduring – a remaster of a Zelda game just dropped on the Switch this month. This is a blue chip asset and is as “safe” to invest in as any video game, and if the video game market continues to grow, the value will also grow.

Verdict

[Full Evaluation for Insiders Only]