‘Gamers don’t fear the apocalypse, they have seen it many times before!’ This statement is well tested in these trying times of the Coronavirus pandemic.
In contrast to other sectors, gaming has shown impressive growth and has been resilient during the pandemic. It is the silver lining that people have looked up to, to engage themselves during this time of loneliness and restrictions. Since ‘stay at home’ and social distancing have become the new normal, gamers have turned to the virtual world. With the extra hours at disposal, gaming platforms see an increase in interaction rate as well as an epitome of sales. The hours spent in traffic to sports stadiums or the prolonged commute hours are all converted into games sessions and reconnecting with members of the virtual team.
No doubt, the lockdown has opened up a world of possibilities for gamers as well as followers. Online streaming of games has seen an increase in the number of audiences that are interacting as it takes them to a parallel reality which acts as an escape mechanism from the monotonous daily ‘stay home’ routine.
Gaming giants ranging from Microsoft (MSFT) and Nintendo (NTDOY) to Activision Blizzard (ATVI) and Take-Two Interactive (TTWO), with Newzoo estimating that the sports sector’s revenue will grow 9.3% in 2020 to $159.3 billion due in part to the pandemic. In April, Microsoft disclosed that the number of subscribers to its Game Pass service (think of it as Netflix-for-gaming) cracked 10 million. Among those subscribers, Microsoft reported a 130-percent increase in online multiplayer fps games engagement across March and April.
Since the “Animal Crossing: New Horizons” launch in March, Nintendo has sold an astonishing 22.4 million copies of the title. “It’s as though the last two quarters have caused industry trends to jump ahead two years.”, said Piscatella.
The NPD Group reported that video game sales in North America in March 2020 were up by 34% from those in March 2019, and the sale of video game hardware shot up by 63% – which includes more than twice the number of units of the Nintendo Switch console. Net spending across the first quarter of 2020 in the United States reached US$10.9 billion, up 9% in 2020 compared to 2019 according to NPD. Such an increase at this point, near the planned end of the eighth generation of video game consoles, is unusual and attributed to actions of the pandemic.
Major console manufacturers like Sony and Microsoft have new consoles in the development phase estimated to launch during the holiday season. The news of PS5 launching online on June 4,2020 had made a subject of attention to which Jim Ryan, CEO of PlayStation said, “It’s our responsibility and it’s an opportunity to keep serving them great gaming content and keep them happy” Even ESPN is showcasing e-sports and video game streaming which is creating a massive viewership base.
Ace2Three raised $75 million led by Canadian private equity major Clairvest Group and in 2019 Mobile Premier League (MPL) raised $40.5 million from Sequoia, Times Internet, GoVentures, and others. Games like PUBG Mobile and Clash of Clans, are popular among the millennials and keep them hooked. The continuously updated formats make the game even more relevant!
The concept of group plays keeps people together and connected even during these times of social distancing. Gamers all across the world unite and find their tribe in games like ‘Fortnite’ and ‘World of Warcraft’ where teams are formed beyond the boundaries of countries. Family and friends have special areas inside the game where they meet and complete missions which gives them a sense of connection. One of those trends that game makers will be looking at moving forward is how to better integrate social interactions in games as the audience is most respective to it – a tip for gaming companies to incorporate in future versions.
Gaming during the pandemic has also opened the gate to funds. Pandemic has made gaming companies believe in venturing out various purposes of attracting audiences that range from awareness to financial benefits and are on the outlook of creating a spectrum of advantages for their audience. Taking the gaming experience, a notch up, gaming companies believe that gamification of education and work will only increase the business and number of participating players!
However while the gaming platforms have seen an unexpected increase in numbers of users, the production rate has stayed the same. Though companies are striving to increase the speed of production, they are facing several operational challenges. Factors like team coordination, communication blocks, and reduced productivity are some of the pointers contributing to this. Moreover, a major hurdle for video games during the pandemic has been getting through the certification phase as companies want to ensure that there are no game-breaking glitches.
With the lockdown situations easing out and coming back to normal, there are speculations about online gamers and audience declining which can be critical for gaming companies. On the other hand, a lot of people who were not even associated with gaming have been introduced to these platforms during the pandemic. “You’ve seen millions of people exposed to it who didn’t know it existed. Next time they see it, they’re going to know what it is, and might want to tune in.”, says John Lasker, ESPN’s vice president of digital programming.
