HH Is It The Right Time To Pick Video Gaming ETFs? Let's Explore

The coronavirus outbreak continues to aggravate in the United as the total number of cases cross 5.7 million, with the death toll surpassing 176,000. This health crisis has forced people to maintain social distancing and work remotely. In such a scenario, people are depending on in-house entertainment. Thus, with kids staying at home and adults looking for some indoor fun activities during leisure time, the video game industry is experiencing a boom.

In fact, The Global Gaming Study: Impacts of COVID-19 conducted by Simon-Kucher & Partners and Dynata in May-June 2020 highlights how the coronavirus outbreak has buoyed the video gaming industry. It reveals that there is a 30% rise in gamers who stay occupied for more than five hours a week. The report also shows that there is a 39% increase in monthly expenditure on video games. This study that surveyed more than 13,000 people across 17 countries about their gaming preferences and behavior also highlights that these lifestyle changes will remain even after the lifting of lockdown.

Video Games Sales Keep Soaring

Going by new data from the NDP Group, the video game industry including hardware, software and accessories saw record-breaking sales in the second quarter with people spending lavishly around $11.6 billion in the United States. The figure was also the highest total second-quarter spending on gaming in U.S. history. Notably, the figure is also up 30% year over year and 7% from the first quarter, when spending had hit $10.9 billion.

Notably, $10.2 billion was spent on content, which includes both video games and downloadable content, up 28% from the same period last year. Console sales also rose year over year, after briefly declining in June. Moreover, there was a total 57% year-over-year rise in sales of Nintendo Co.’s (NTDOY) Switch, Microsoft Corporation’s (MSFT) Xbox One and Sony Corporation’s (SNE) PS4 to $848 billion. Also, the top selling games included Animal Crossing: New Horizons, Call of Duty: Modern Warfare, Call of Duty: Warzone, Candy Crush Saga, Candy Crush Soda Saga, Final Fantasy VII: Remake, Grand Theft Auto V, Mario Kart 8: Deluxe, Minecraft, NBA 2K20, Pokémon Go and The Last of Us: Part II.

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