Skyrocketing Video Game Sales are Creating Big Opportunity for these Companies
Video game sales were explosive in 2020. For full-year 2020, video game spending just in the U.S. totaled $56.9 billion - up 27% year over year, according to NPD. 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. In addition, even when the pandemic is over, gaming demand is likely to stay strong, which is great news for Enthusiast Gaming Holdings Inc. (TSX:EGLX)(OTCQB: ENGMF), Electronic Arts Inc. (NASDAQ:EA), Activision Blizzard (NASDAQ:ATVI), Netflix Inc. (NASDAQ:NFLX), and Roku Inc. (NASDAQ:ROKU).
According to Mat Piscatella, an analyst for NPD Group, as quoted by Bloomberg, “The long-term impact of the pandemic is the rise of social gaming and the rise of communicating online. Even when we get back to whatever the new normal is, that social stickiness is really hard to shake off. It’s really difficult to say, Hey, the pandemic is easing, people are going out, and they’re not going to play Fortnite. I don’t think that math quite works.”
Better, video game sales show no signs of slowing – at least not any time soon. According to the NPD Group, sales of games, hardware, and accessories hit a record $4.6 billion in February, up 35% year over year. In January, sales reached $4.7 billion, up 42% year over year.
Look at Enthusiast Gaming Holdings Inc. (TSX:EGLX)(OTCQB: ENGMF), for example
Enthusiast Gaming Holdings Inc., the largest gaming media platform in North America, reaching over 300 million monthly video game and esports fans worldwide, is pleased to announce it has signed an integrated and strategic partnership deal with ESPAT TV. ESPAT TV will leverage Enthusiast Gaming’s reach into the GenZ and Millennial demographics, utilizing the Company’s integrated platform of fan communities to engage with a wider audience.
Globally networked and inspired by gaming culture, design, creativity and storytelling, ESPAT TV’s Creative Collective, which consists of Ridley Scott Creative Group, Petrol, PRG, and Movers & Shakers, has produced work across the globe partnering with publishers, brands, live events, and advertising agencies alike.
“ESPAT TV is a strong producer of gaming and entertainment content across multiple distribution channels, and we are thrilled to enter into such a like-minded partnership that brings new storytelling possibilities to our platform of fan communities,” commented Adrian Montgomery, CEO of Enthusiast Gaming. "With the unique advantage provided by this Creative Collective, we aim to further the production of premium gaming content across social-video and entertainment platforms."
“Partnering with Enthusiast Gaming is an amazing opportunity, and we are excited to produce cutting edge content. We share the same creative vision and always put the gaming community first. This partnership is about growth, aligning with the largest gaming community in North America. ESPAT TV team continues to exceed my expectations with their ability to develop stories and relationships. Our goal is to make the ESPAT TV name synonymous with first-class storytelling, entertainment, and narratives,” said Dante Simpson, CEO of ESPAT TV.
"We're thrilled to come together with Enthusiast Gaming to evolve the space and push the boundaries of what's possible when it comes to world-class content across all streaming and social platforms," said RSA Films Director, Christian Lamb on behalf of ESPAT TV.
Other related developments from around the markets include:
Electronic Arts Inc. announced EA SPORTSPGA TOUR, a new next-gen golf video game, currently in development. InEA SPORTSPGA TOUR, golf fans will be able to build their virtual career and experience the sights, sounds, and thrills of the PGA TOUR including THE PLAYERS Championship, FedExCup Playoffs and more unforgettable events. The game will also feature many of the world’s most famous courses, where fans will have the option to play against and as some of the biggest names in professional golf. More EA SPORTS PGA TOUR news will be revealed in the coming weeks and a launch date will be announced in the coming months.
Activision Blizzard announced the promotion of Armin Zerza to the company’s Chief Financial Officer. A deeply experienced global CFO and operations executive, Zerza currently serves as Chief Commercial Officer of Activision Blizzard and Chief Operating Officer of Blizzard Entertainment. He will assume his new role in the Company’s second fiscal quarter, following the retirement of current CFO Dennis Durkin. Thomas Tippl, Vice Chairman of Activision Blizzard, noted: “I’ve worked with Armin for more than 20 years, going back to our days at The Procter & Gamble Company. I’m supremely confident in his expertise, focus, and ability to drive shareholder value and disciplined financial performance. When I recruited Armin to become CFO of Blizzard six years ago, I expected him to one day become the CFO of the entire company. I look forward to partnering with him as he builds on the exceptional work Dennis and our team have done to build such a strong global finance function.”
Netflix Inc. announced it will post its first-quarter 2021 financial results and business outlook on its investor relations website at http://ir.netflix.net on Tuesday, April 20, 2021, at approximately 1:00 p.m. Pacific Time. At that time, the company will issue a brief advisory release via newswire containing a link to the first-quarter 2021 financial results and letter to shareholders on its website. A video interview with Netflix co-CEO Reed Hastings, co-CEO & Chief Content Officer Ted Sarandos, Chief Financial Officer Spence Neumann, COO & Chief Product Officer Greg Peters and VP, IR & Corporate Development Spencer Wang will be available at 3:00 p.m. Pacific Time. The discussion will be moderated by Nidhi Gupta, Fidelity Management & Research Co., with questions submitted via email.
Roku Inc. announced the launch of an advertising brand studio to produce new creative ad formats and TV programming tailored for marketers. The advertising brand studio will help marketers go beyond the traditional 30-second TV ad spot and amplify big moments in the marketing calendar, including advertiser-commissioned short-form TV programs, interactive video ads, and other branded content on The Roku Channel. “The shift to TV streaming has accelerated and leading advertisers are going beyond the 30-second ad,” said Dan Robbins, Vice President, Ad Marketing, Roku. “We’re excited to launch a new advertising brand studio for marketers to create streamer-first campaigns on America’s #1 TV streaming platform.”
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