As lockdowns have been imposed around the world in recent months due to the COVID-19 pandemic, millions of people have tried to remain occupied indoors. A rise in video game sales during the first half of the year was largely attributed to the lockdowns, and sales again surged in August.
Stocks in video game companies remained solid – with some even increasing in value, as other sectors recorded heavy losses. Americans spent record money on video games in August, and the figures are only predicted to increase as we head towards the launches of the next-generation of consoles.
According to the latest stats released by NDP, $3.3 billion was spent on hardware, software, and gaming accessories in August, which represents an increase of 37% year-on-year. So far this year, spending is at $29.4 billion, which shows an increase of 23% against the same time last year.
The Nintendo Switch has become the most sought after console, taking a large share of the $229 million that consumers spent on hardware. The Nintendo Wii had previously set the record for dollar sales in 2008, but the Switch has just set a new record. Switch sales have doubled compared with a year ago.
It was another good month for Nintendo games, taking 5 spots in the top 10 games of August: Animal Crossing, Ring Fit Adventure, Mario Kart 8: Deluxe, Super Smash Bros. Ultimate, and Paper Mario: The Origami King.
There has also been a huge spike in flight stick sales, following the highly anticipated release of Microsoft Flight Simulator 2020.
Fall Guys, the new indie game which has become extremely popular in recent weeks, has also broken records, registering a staggering seven million units sold on Steam alone, just three weeks after its initial launch on August 4th. Fall Guys could have registered a lot more sales, but it was given to PS Plus members as a freebie at launch, which helped it to become the most downloaded PS Plus game in history.
The next few months will be interesting for the video game industry, with sales continuing to show signs of increasing. While millions of gamers still remain largely indoors, there´s also potentially millions more who are just getting in started in the hobby, whether it´s through consoles, PC or smartphones. According to Nielsen, 64% of the U.S population are now gamers, and that figure is growing rapidly.
If you´re just getting started with stock investing, the video game industry is the place to start looking!