Use any weakness in video game stocks as an opportunity.
Activision Blizzard (ATVI), Take-Two (TTWO), and Electronic Arts (EA), Roblox (RBLX) just to name a few. All with video games showing no signs of cooling.
In fact, a new report from the NPD Group says that video game sales are up 30% in the first quarter of the year rising to $14.92 billion. “Video game content (which includes new games, expansions, and DLC) went up by 25% to a total of 12.8 billion, while video game accessories (including microtransactions) went up 42%,” reports The Gamer.
NPD added, “Consumer spending on video game products continued to thrive in the first quarter, delivering record results. While we are still seeing elevated rates of both engagement and spending resulting from changes in consumer behavior driven by the pandemic, we are also seeing cyclical gains from the November launches of both the PlayStation 5 and Xbox Series consoles. The growth driven by these new platforms, combined with gains experienced in mobile, PC and VR content spending, as well as the continued strength of Nintendo Switch, have pushed the market to new highs.”
While there are concerns the video game boom will end as pandemic fears fade, that fear may be overblown. According to Take-Two CEO Strauss Zelnick, the overall addressable market for gamers “will be notably larger going forward than it was pre-pandemic,” as quoted by The Wall Street Journal.
