Gaming ETFs To Keep Shining Bright Amid Surging Sales

Stock, Trading, Monitor, Business

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The video game industry continues to surprise investors with the consistent strength in sales amid the ongoing health crisis. The total consumer spending on gaming for eight months is up 13% year-over-year to $37.9 billion, per The NPD Group report. What impresses more is that the video gaming industry is delivering robust growth despite tough year-over-year comparisons, highlighting the true strength in the space.

Video Game Sales Keep Soaring

Recently-released data from The NPD Group emphasizes that the video game industry, including packaged media, digital media, consoles, and accessories, witnessed robust sales in August -- with people spending $4.37 billion in all, reflecting 7% growth year-over-year.

Hardware spending surged 45% in August to $329 million, led by wider distribution of new-generation consoles from Microsoft (MSFTFree Report) and Sony, per the same NPD Group report. Spending on consoles jumped 49% year over year to $3 billion in the year-to-date period.

Nintendo’s (NTDOY - Free Report) Switch continues to be the top-selling console in terms of units sold for August and year-to-date, per a GameDaily article. Meanwhile, Sony’s (SONY - Free Report) PlayStation 5 dominates the charts in terms of dollar sales in both periods.

Spending on content that includes physical & digital full game, DLC/MTX console, cloud, mobile, portable, PC, and VR platforms increased 5% on a year-over-year basis to $3.88 billion. Year-to-date sales rose 11% to $33.33 billion. Meanwhile, accessories spending remained flat in August at $164 million, per the same NPD Group report. Moreover, there was a 12% rise in accessories sales to $1.59 billion in the year-to-date period.

Titles like Madden NFL 22, Ghost of Tsushima, Call of Duty: Black Ops: Cold War, Humankind, and Marvel’s Spider-Man: Miles Morales were among the top-five best-sellers in August.

Game developers are continuing to innovate and attract users every day and also retain the old ones. They are increasing engagement for existing players by providing new titles, levels, arenas, or environments as the games require at regular intervals. Mergers and acquisitions continue to support the gaming space.

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