The videogame industry has been going through a dream run for quite some time, thanks to the pandemic that saw more people buying console games as they stayed at home. And 2021 too seems to have started on a high.
According to a new report from Safe Betting Sites, consumer spending on video games jumped over 40% in January. This includes spending across all categories including hardware, software and accessories.
January Videogame Spending Jumps
According to a report published in
APN News, citing data from Safe Betting Sites Consumer spending on videogames in the United States jumped a solid 42% on a year-over-year-basis in January, reaching $4.7 billion. On a month-over-month basis, spending increased 25% to $7.7 billion. Globally, revenues from digital sales increased 15% in January.
The robust revenues were reported across all segments, with software sales jumping 36% increase from $3.06 million to $4.17 million in January. Hardware sales soared a whopping 144% to $319 million in January 2021 from $319 million a year ago. Sales of accessories surged 73% to $222 million from $128 million a year ago.
Videogame Industry on a High Nintendo, Co’s ( NTDOY Quick Quote NTDOY - Free Report) Switch was the best-selling console in January, while Sony Corporation’s PS5 was the second-best performer. The videogame industry has been on a high for more than a year. The pandemic saw most people staying indoors that left them with not too many choices for entertainment. This saw more people buying videogames to spend idle time.
The rise in January comes after a solid fourth quarter in 2020 when sales jumped 26% year over year to $18.6 billion to hit a record high.
In fact, the videogame industry was already doing well for some time and the whole of 2020 proved to be a great year. According to a report from NPD Group, U.S. videogame sales hit $56.9 billion in 2020, increasing 27% year over year. This is also the highest sales generated ever.
The videogame industry has started 2021 on a high too. 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 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 7.9% over the past 30 days. Sony has a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Microsoft Corporation ( MSFT Quick Quote MSFT - Free Report) is one of the leading videogame makers that also manufactures hardware and accessories. The company has been expanding its footprint in the videogame 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 60 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 the current year is 11.4%. The Zacks Consensus Estimate for current-year earnings has improved 8.8% over the past 30 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 segments.
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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