After a great 2020, the videogame industry continues to thrive. According to the latest data from the NPD Group, console sales in January hit a 10-year high as more people stayed confined to their homes and continued to buy videogame consoles.
The pandemic has been helping a few industries and gaming has been one of the biggest beneficiaries. While the other entertainment options like parks and theatres remain closed, people are left with not much choice but to play videogames at home.
Console Sales Record Best January in a Decade
According to data from NPD Group, sales of videogame hardware surged 144% year over year in January, reaching $319 million. This is the highest sales recorded since January 2011, when sales hit $323 million.
Among all the categories,
Nintendo, Co’s ( NTDOY Quick Quote NTDOY - Free Report) Switch came in as the highest-selling consoles. In terms of dollars spent, Sony Corporation’s ( SNE Quick Quote SNE - Free Report) PlayStation 5 emerged as the winner. This was mainly because of the price. Overall spending on gaming in the United States increased 44% in January as sales continued to rise.
Sales of videogame content increased 36% to a total of $4,172 million in January on a year-over-year basis, while videogame accessories sales jumped 73% in the same time period.
Videogame Industry on a High
According to an earlier report from NPD Group, U.S. videogame sales hit $56.9 billion in 2020, increasing 27% from the previous year. This is also the highest sales generated ever.
Spending on hardware touched $5.3 billion, surging 35% year over year to a 10-year high. Experts believe that sales will continue to soar in 2021 as new console models have been launched and are selling like hot cakes.
The videogame industry has started 2021 on a high note, given that the pandemic is still keeping people indoors and is likely to result in surging sales in the coming days. This thus makes it an opportune time to invest in gaming stocks that are sure to gain in the near term.
Sony Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers and computer peripherals and telecommunication equipment.
The company’s expected earnings growth rate for the current year is 92.7%. The Zacks Consensus Estimate for current-year earnings has improved 28.7% over the past 60 days. Sony has a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Microsoft Corporationn ( MSFT Quick Quote MSFT - Free Report) is one of the leading videogame makers and manufactures hardware and accessories. The company has been expanding its footprint in the industry and recently announced that it will be acquiring videogame maker ZeniMax Media.
The company’s expected earnings growth rate for the current year is 27.4%. The Zacks Consensus Estimate for current-year earnings has improved 9.1% over the past 30 days. Microsoft carries a Zacks Rank #2 (Buy).
TakeTwo Interactive Software, Inc. ( TTWO Quick Quote TTWO - Free Report) is a leading developer and publisher of video games. The company earns revenues from the sale of disk-based video game products, downloadable contents, subscription, micro-transactions and advertising.
The company’s expected earnings growth rate for next year is 4.7%. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the past 60 days. TakeTwo carries a Zacks Rank #2.
Capcom Co., Ltd. ( CCOEY Quick Quote CCOEY - Free Report) plans, develops, manufactures, sells and distributes consumer video games. Its operating segment consists of Digital Contents, Arcade Operations, Amusement Equipments and Other Businesses.
The company’s expected earnings growth rate for the current year is 43.5%. The Zacks Consensus Estimate for current-year earnings has improved 12.5% over the past 60 days. Capcom has a Zacks Rank #2.
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