Feb 10, 2021 (Baystreet.ca via COMTEX) -- Video game sales were explosive in 2020. In fact, for full-year 2020, video game spending just in the U.S. totaled $56.9 billion - up 27% year over year, according to NPD. About $7.7 billion of that was spent in December 2020 – the highest sales figure ever recorded for that month.
From here, video game sales could grow even more with big demand and a massive gaming community. Of the total population of 7.7 billion people in the world, according to Financial Post, it’s estimated that a third of the population are gamers.
With those catalysts showing no signs of cooling, it was no surprise to see companies like Activision Blizzard /zigman2/quotes/200717283/composite ATVI -1.33% given an upbeat outlook for 2021 and 2022. All thanks to video game franchises, such as Call of Duty, World of Warcraft, and Candy Crush.
According to Bloomberg, “Revenue this quarter will be $1.75 billion, excluding some items, the company said Thursday, compared with the $1.68 billion predicted by analysts. Its annual forecast also topped estimates, and Activision said 2022 will benefit from a flurry of new game releases. Activision’s board also increased the dividend 15% to 47 cents a share, payable on May 6. And it embarked on a new two-year stock repurchase program of as much as $4 billion.”
Pay very close attention to video game stocks. Many have big potential going forward.
Other companies benefiting, include Take Two Interactive Software /zigman2/quotes/204008930/composite TTWO -2.03% , Electronic Arts Inc. /zigman2/quotes/206954087/composite EA -1.20% , and Nintendo Co. Ltd. /zigman2/quotes/201616881/composite NTDOY -0.12% .
It’s Also Great for Enthusiast Gaming Holdings Inc. /zigman2/quotes/216212788/delayed CA:EGLX +2.49% (otcqb:ENGMF)
The video game industry is worth more than US$150 billion globally and eclipses the movie and music industries combined. With continued growth and interest from nearly every age range and background, people and brands are taking note of the incredible opportunities that exist by using gaming and digital communications to reach broader audiences, says Enthusiast Gaming.
Canada’s pre-eminent public affairs podium, The Canadian Club Toronto, hosted an expert panel today featuring Adrian Montgomery, Chief Executive Officer, Enthusiast Gaming; Heidi Browning, Chief Marketing Officer, National Hockey League; and Allison Stern, Digital Partnerships Manager, Biden-Harris 2020 Campaign. Amanda Lang, host of Bloomberg Markets on BNN Bloomberg, moderated the discussion.