In other news water is wet, the sky is blue, and panicking during a pandemic will kill you. As obvious as it is that people under quarantine or in a lockdown don’t have many options at their disposal and will turn towards gaming and other digital enterprises to occupy their time we now have solid data coming out of Verizon and other outlets that is rather intriguing.
As the Hollywood Reporter reports, gaming has seen a 75% surge over the last week. Defeating video streaming, which saw a 12% increase. Along with surfing the web that increased by 20% with social media remaining steady with no increased margins of usage.
VPN usage surged up 34% accredited to individuals having to access secure company networks from home. Though the recent bout of VPN sponsorships likely accounts for a significant portion of the increase.
In the article analysts from Cowen Inc demonstrate they have virtually no idea what they’re talking about claiming:
“We expect video game sector fundamentals to fare far better than the market average during the current COVID-related extraordinary measures, and during any possible resulting recession. As such, we think the sector is a (relatively) good place to weather market volatility.”
Digital distribution has grown yes, but the majority of the market still purchases physical copies. Microtransactions will likely see a surge during lockdowns, but overall sales for the period will be considerably weaker. Other reports indicate Corona could potentially delay the development on many projects and as we now know several major conventions have been canceled or postponed as a result of the Corona Virus. These conventions are huge marketing opportunities for companies and have left the likes of Microsoft to have to plan their own digital event with the cancellation of E3. By no means will the Video Game sector being a good investment at this time.
In fact, no sector during a market decline is a good investment. You don’t buy when the market is revaluing after a bubble bursts and the fundamental market structure, (i.e., Globalism), begins to unravel. Leading into a changing paradigm in how markets will function in the coming years.
It is good to see people have found outlets to keep themselves from going mad during these trying times. Remember Pandemics are temporary, but Doom is eternal, so is the wholesomeness of managing your own island.
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