Video game sales have been rising for the past couple of months as the coronavirus pandemic has kept people confined to their homes. After an impressive first quarter, and a rise in sales in April and May, video game sales hit a 10-year high in June, according to the latest figures from NDP.
Now, while coronavirus cases continue to surge, people are once again confining themselves to their homes. And although restrictions are being eased and the economy is slowly reopening, it is likely that people will once again fall back on streaming services and video games to kill time.
Video Game Sales Hit Record High
According to latest figures from NDP, spending hit $1.2 billion on hardware, full game sales and accessories. Spending has been substantially higher in 2020 compared to last year. Sales through June 2020 were up 19%, and June sales specifically were up 26% year over year. In June 2019, video game sales had hit $952 million.
Spending on video games has reached $6.6 billion year to date, hitting a 10-year high. It’s the highest total for the first six months of the year since spending hit $7 billion in 2010. Through half-year 2020, hardware revenues are up 25% to $1.6 billion from $1.28 billion last year. Sales of game accessories and game cards jumped 29% to $417 million from $323 million last year.
New Game Launches, Software Drive Sales
Besides hardware, video game sales of software surprisingly grew 49% to $570 million in June from $382.5 million a year ago. Software sales were partly driven by the launch of Sony Corporation’s SNE The Last of Us: Part II.
Per NPD, Sony’s release topped Call of Duty: Modern Warfare and Animal Crossing: New Horizons. However, Nintendo Co.’s NTDOY Switch again led all platforms in unit and dollar sales. With more console games scheduled to be launched by both Sony and Microsoft Corporation MSFT this fall, video game sales are poised to only grow in the coming months.
U.S. video game sales hit an all-time quarterly high earlier this year and now has set a new year-to-date sales record. This makes it an opportune time to invest in gaming stocks that are sure to gain in the near term.
Zynga Inc. ZNGA is a leading developer, marketer and publisher of social game services. Its gaming portfolio includes CSR Racing 2, Empires & Puzzles, FarmVille, Merge Dragons!, Words With Friends, Mafia Wars, Zynga Poker and Treasure Isle.
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 11.5% over the past 30 days. Zynga carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DouYu International Holdings Limited DOYU provides a game-centric, live-streaming platform. The company operates its platform on both PC and mobile apps.
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 34.2% over the past 60 days. DouYU has a Zacks Rank #2.
Capcom Co., Ltd. CCOEY plans, develops, manufactures, sells and distributes consumer video game. 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 14.5%. Its shares have gained 18.7% over the past three months. Capcom has a Zacks Rank #2.
PlayAGS, Inc. AGS is a designer and supplier of electronic gaming machines and other products and services for the gaming industry. The company's product lineup includes Class III EGMs for commercial and Native American casinos, video bingo machines for select international markets, table game products and interactive social casino products.
The company’s expected earnings growth rate for the current year is more than 100%. Its shares have gained 4.2% over the past three months. PlayAGS has a Zacks Rank #2.
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Sony Corporation (SNE): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Nintendo Co. (NTDOY): Free Stock Analysis Report
Zynga Inc. (ZNGA): Free Stock Analysis Report
Capcom Co., Ltd. (CCOEY): Free Stock Analysis Report
PlayAGS, Inc. (AGS): Free Stock Analysis Report
DouYu International Holdings Limited Sponsored ADR (DOYU): Free Stock Analysis Report
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