The coronavirus outbreak has been a blessing in disguise for the video game industry. The pandemic has confined people indoors to minimize human-to-human contact. This in turn led to increased demand for in-house entertainment sources, boosting video game sales. Notably, consumer spending on video games in pandemic-hit 2020 hit a new all-time high of $56.9 billion, up 27% from 2019, according to The NPD Group. Remarkably, the industry tracker’s latest report highlights the same story.
Video game sales continue to rise
Data recently released by The NPD Group shows that the video game industry, including packaged media, digital, consoles and accessories, saw strong sales in March, with people spending a total of around $5.6 billions of dollars. Notably, the figure was up 18% year over year.
On the hardware front, consumers spent $680 million, up 47% year-over-year, with Nintendo Co.’s (NTDOY) Switch again the top-selling console. In fact, Nintendo Switch stood out as the top-selling hardware platform in units and dollars for last December and all of 2020.
In this regard, Mat Piscatella of the NPD Group, industry analyst, U.S. Games, stated that “Nintendo Switch was the best-selling hardware platform in units and dollars during the month of March. In the first quarter, Nintendo Switch was the leader in unit sales while the PlayStation 5 ranked first in hardware sales by dollars,” according to an article by VentureBeat. Additionally, Mat Piscatella also mentioned that “PlayStation 5 is the best-selling console in US history by unit and dollar sales [thanks to] lifetime sales with five months on the market” , according to the article mentioned above.
It should be noted here that the PlayStation 5 came out of 2020 as the second best-selling console in terms of dollar sales, while the PlayStation 4 held the second position in units sold, according to the sources.
Notably, users spent an estimated $4.63 billion on video game content (physical and digital full game, DLC/MTX, and subscription across console, cloud, mobile, handheld, PC, and VR platforms) compared to $4. 06 billion a year ago by source. Additionally, $300 million was spent on video game accessories, up 26% year over year.
Additionally, five of the top 10 games of the month were Call of Duty: Black Ops: Cold War, Monster Hunter: Rise, Outriders, Super Mario 3D World, and Marvel’s Spider-Man: Miles Morales.
Video game ETFs to win
It also looks like the boom in the video game space may remain in the post-pandemic era, as the outbreak has changed the lifestyle and preferences of Americans to a large extent. In this context, investors can take a look at the following video game ETFs:
The Roundhill BITKRAFT Esports & NERD Digital Entertainment ETFs
The fund is designed to provide investors with exposure to eSports & digital entertainment by providing investment results that closely correspond, before fees and expenses, to the performance of the Roundhill BITKRAFT Esports Index. He has 35 shares in his basket. With an AUM of $110 million, the fund charges an expense ratio of 50 basis points (bps) (read: Sports betting ETFs at Rally on March Madness Gambling).
VanEck Vectors Gaming and eSports ETF ESPO
The fund seeks to replicate, as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Video Gaming and eSports Index, which aims to track the overall performance of companies involved in the development of video games. , esports and related hardware and software. He has 25 shares in his basket. With an AUM of $836.2 million, the fund charges an expense ratio of 55 basis points (read: ETFs to buy on Nvidia’s growth story).
Global X & amp; HERO ETFs
The fund seeks to invest in companies that develop or publish video games, facilitate the streaming and distribution of video game or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality. He has 40 shares in his basket. With an AUM of $705.7 million, the fund charges an expense ratio of 50 basis points (read: Take these 5 ETFs as coronavirus cases continue to rise).
Wedbush ETFMG Video Game Tech ETF GAMR
The fund offers purely playful and diversified exposure to a dynamic crossroads of technology and entertainment. It also generally matches the price and yield performance of the EEFund Video Game Tech Index. The index is designed to reflect the performance of companies involved in the video game technology industry, including game developers, console and chip manufacturers, and game retailers. He has 106 shares in his basket. With an AUM of $119.9 million, the fund charges an expense ratio of 75 basis points (read: 5 sector ETFs beating the market in March).
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