The videogame industry continues to be on a high ever since the coronavirus outbreak. The pandemic has seen people spending more on indoor entertainment, and videogames have been winners all the way. And with no sign of the virus easing, the gaming industry is likely to benefit in the coming days.
According to the latest data from the NPD Group, spending on videogames jumped once again in March. The video gaming industry has now recorded more than one year of continued gains amid the pandemic-related disruptions.
Videogame Sales Soar
According to the latest report from the NPD group, gamers spent a record $5.61 billion in March on buying videogames, hardware and accessories. This reflects a year-over-year jump of 18% when gamers spent $4.75 billion on games and accessories.
Through the first 90 days of 2021, spending on videogames has risen 30% year over year to $14.92 billion from $11.47 billion. Hardware sales soared a record 47% on a year-over-year basis to $680 million from $462.5 million.
Also, software sales surged 14% to $4.63 billion from $4 billion year over year. Sales of accessories grew 26% to $300 million from $238 million a year earlier. Through the first 90 days of 2021, accessories sales grew 42% to $717 million from the year-earlier figures of $505 million.
Videogame Industry on a High
According to an earlier report from NPD Group, videogame sales hit $56.9 billion in 2020 in the United States, jumping 27% from a year earlier.
The pandemic saw millions locked in their homes with almost no options for outdoor entertainment. This saw them spending more on videogames, hardware and accessories, thus making it a great 2020 for the videogame industry.
One year down the line, despite three COVID-19 vaccines already having been rolled out, the situation hasn’t changed much as cases are still on the rise and fears continue to escalate. According to Newzoo, global videogame revenues could reach $189.3 billion in 2021, taking the total games to 2.8 billion worldwide. And it seems the industry is on track as the first three months of the year have proven to be great with sales soaring.
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.
Microsoft Corporation ( 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 the videogame maker ZeniMax Media.
The company’s expected earnings growth rate for the current year is 28%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. Microsoft carries a Zacks Rank #2 (Buy).
Sony Corporation ( SONY Quick Quote SONY - Free Report) 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 more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 51% over the past 60 days. Sony has a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Activision Blizzard, Inc. ( ATVI Quick Quote ATVI - Free Report) is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most-popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.
The company’s expected earnings growth rate for the current year is 5.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the past 60 days. Activision Blizzard carries a Zacks Rank #3.
Electronic Arts Inc. ( EA Quick Quote EA - Free Report) is a leading developer, marketer, publisher and distributor of interactive games (video game software and content). It distributes its gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals.
The company’s expected earnings growth rate for next year is 9.4%. Its shares have increased 9.1% in the past 30 days. Electronic Arts has a Zacks Rank #3.
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