The videogame industry has been going through a dream run for quite some time, thanks to the pandemic that saw more people buying console games as they stayed at home. And 2021 too seems to have started on a high.
According to a new report from Safe Betting Sites, consumer spending on video games jumped over 40% in January. This includes spending across all categories including hardware, software and accessories.
January Videogame Spending Jumps
According to a report published in APN News, citing data from Safe Betting Sites Consumer spending on videogames in the United States jumped a solid 42% on a year-over-year-basis in January, reaching $4.7 billion. On a month-over-month basis, spending increased 25% to $7.7 billion. Globally, revenues from digital sales increased 15% in January.
The robust revenues were reported across all segments, with software sales jumping 36% increase from $3.06 million to $4.17 million in January. Hardware sales soared a whopping 144% to $319 million in January 2021 from $319 million a year ago. Sales of accessories surged 73% to $222 million from $128 million a year ago.
Videogame Industry on a High
Nintendo, Co’s NTDOY Switch was the best-selling console in January, while Sony Corporation’s SNE PS5 was the second-best performer. The videogame industry has been on a high for more than a year. The pandemic saw most people staying indoors that left them with not too many choices for entertainment. This saw more people buying videogames to spend idle time.
The rise in January comes after a solid fourth quarter in 2020 when sales jumped 26% year over year to $18.6 billion to hit a record high.
In fact, the videogame industry was already doing well for some time and the whole of 2020 proved to be a great year. According to a report from NPD Group, U.S. videogame sales hit $56.9 billion in 2020, increasing 27% year over year. This is also the highest sales generated ever.
The videogame industry has started 2021 on a high too. This thus makes it an opportune time to invest in gaming stocks that are sure to gain in the near term.
Sony Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers and computer peripherals and telecommunication equipment.
The company’s expected earnings growth rate for the current year is 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 7.9% over the past 30 days. Sony has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Microsoft Corporation MSFT is one of the leading videogame makers that also manufactures hardware and accessories. The company has been expanding its footprint in the videogame industry and recently announced that it will be acquiring videogame maker ZeniMax Media.
The company’s expected earnings growth rate for the current year is 27.4%. The Zacks Consensus Estimate for current-year earnings has improved 9.1% over the past 60 days. Microsoft carries a Zacks Rank #2 (Buy).
TakeTwo Interactive Software, Inc. TTWO is a leading developer and publisher of video games. The company earns revenues from the sale of disk-based video game products, downloadable contents, subscription, micro-transactions and advertising.
The company’s expected earnings growth rate for the current year is 11.4%. The Zacks Consensus Estimate for current-year earnings has improved 8.8% over the past 30 days. TakeTwo carries a Zacks Rank #2.
Capcom Co., Ltd. CCOEY plans, develops, manufactures, sells and distributes consumer video games. Its operating segment consists of Digital Contents, Arcade Operations, Amusement Equipments and Other Businesses segments.
The company’s expected earnings growth rate for the current year is 43.5%. The Zacks Consensus Estimate for current-year earnings has improved 12.5% over the past 60 days. Capcom has a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sony Corporation (SNE) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
TakeTwo Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
Nintendo Co. (NTDOY) : Free Stock Analysis Report
Capcom Co., Ltd. (CCOEY) : Free Stock Analysis Report
To read this article on Zacks.com click here.