Video Gaming ETFs Poised To Gain From Soaring Sales

Lockdown measures have resulted in a spike in video game sales in April. Per the NPD Group report, U.S. gaming industry witnessed record sales across hardware, software, accessories and game cards, totaling $1.5 billion (up 73% year over year) in April.

Coronavirus Buoys Video Gaming Industry

Coronavirus, which has infected more than five million globally, has resulted in drastic changes in lifestyle and preferences of people so as to abide by social-distancing measures. The pandemic has forced consumers to resort to online retailers for purchases of food items and other goods and to turn to video streaming services and other modes of in-house entertainment. Now, when almost all U.S. states have begun the process of reopening and easing social-distancing norms, people are still trying to minimize human-to-human contact.

Highlighting the ‘new normal’, the NPD Group report further states that software sales rose 55% last month, to $662 million. Final Fantasy VII: Remake stood out as the best-selling game, followed by Call of Duty: Modern Warfare and Nintendo’s (NTDOY - Free Report)  Animal Crossing: New Horizons. Going on, the report shows that there was a 163% surge in hardware sales to $420 million, with the Nintendo Switch topping the numbers in both unit and dollar sales. The PlayStation 4, Xbox One, and Switch saw soaring sales of more than 160% year over year, per the report.

Sales in the first quarter were up 9% year over year as people were confined to their houses due to the coronavirus outbreak (per the NPD Group report). They spent a record $10.86 billion on computer games, hardware, and accessories, according to the report.

Top gaming companies have raised their revenue expectations for 2020 while many have reported a surge in sales. Nintendo’s profits in the first quarter of 2020 more than tripled from the previous quarter. The company sold a record 11.8 million units of Animal Crossing in March, making it the best Switch launch since its release in 2017.

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