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Online gaming isn’t a new trend but COVID-19 has, without a doubt, helped boost this vertical to a new level as we have seen more revenue being poured into gaming companies and platforms during the pandemic. With reports that three out of every four people in the U.S. play video games and more of them do so with multiple devices, it’s not a surprise there’s a lot of pie to share.
Nintendo was surely the big winner at the onset of the pandemic lockdown as titles like Animal Crossing helped bring success to their Switch consoles which is set to sell 24 million units by the year ending March 2021.
Meanwhile, Microsoft’s new Xbox and Sony’s Playstation 5 launch today and Thursday respectively in the U.S., while will lead to more competition for Switch as we head into the year-end shopping season.
Popular game distributor companies like Rockstar Games famous for their Grand Theft Auto series are already preparing for the new consoles set to launch, adapting their previous games to match the higher quality playing environments.
Meanwhile, Electronic Arts who is famous for their numerous sports league centric games (FIFA, NHL, etc.) have suffered according to their recent earnings. However, their live services are strong with a 13.2% increase YOY.
Video game rental subscription service GameFly also has newfound support through an acquisition by Alliance Entertainment, which will help boost its games to rent and buy.
Fundings and IPOs
Other mobile gaming developer companies are also getting quite a lot of attention this 2020.
While Unity filed for IPO in August, Fortnite developer Epic Games and Scrabble Go developer Scopely also reaped the benefits, receiving multiple funding rounds that total $2.5BN and $540MM respectively.
Roblox, another game developing platform is also preparing to go public after receiving a $150MM Round G funding in February.