Big Tech companies, including digital advertising duopoly Google and Facebook, have accelerated their push into the global video gaming market as they look to capitalize on the market opportunities caused by the COVID-19 pandemic. The timely promotion of their cloud gaming and live game streaming platforms will help both companies increase their presence in the gaming industry and close the gap between themselves and competitors.
The COVID-19 pandemic has caused a surge in demand for video games as consumers look for ways to entertain themselves during lockdown. As a result, many gaming companies have thrived over the duration of the pandemic as sales, particularly for in game-purchases, have helped developers surpass their financial expectations. Some of the companies that have benefited from lockdown restrictions during the first half of 2020 include the likes of Call of Duty developer, Activision Blizzard; leading eSports company, Electronic Arts, as well as China’s internet-based platform company, Tencent and Japanese gaming titans Nintendo.
Video gaming stocks have remained resilient
during lockdown, Stocks started to fall during the first half of March but
rebounded later in the month and continued to growth through April and May. Some
companies may experience share price declines after lockdown restrictions are
alleviated as gaming activity drops and new game releases are delayed. However,
next generation consoles expected to launch at the end of the year will help
share prices remain high.