Online Video Game Sales Are Thriving

For some people, video games are their life. Other people find them a needless distraction. But a lot of people are now discovering that video games can be a good, challenging way to fill their time now that they are stuck in their living rooms, unable to leave their houses for anything they would otherwise be doing. A record number of games have been downloaded since lockdown began in the UK in March, and combined, PS4, Xbox One and Nintendo Switch sales have increased more than 160% since April in the US, with software sales increasing 55% to $662 million.

With the Nintendo Switch currently the best-selling console of all time, it’s not all that strange that people who don’t generally play video games are turning to it to relieve their boredom. Nintendo have a track record of attracting customers who aren’t “gamers” from the release of the Wii in 2006. Its at the time revolutionary motion control system drew in all types of people who wanted to experience something a bit different. With the Switch fulfilling the role of both a home console and a handheld, with a wide variety of different types of games, it may be that the customers Nintendo has attracted during the Coronavirus pandemic will continue to stay with the console, with a new hobby.

Though it has existed for a while now, since the last console generation days of the PS3, Xbox 360 and Wii, the concept of downloading full games is experiencing something of a renaissance in recent months. As mentioned above, software sales in the US have increased massively. While some of this will no doubt be physical game sales from online retailers such as Amazon, it is a fact that people will perhaps feel better about downloading games now, with the chosen game being available more or less instantly, versus having to wait days for postal delivery. Also to consider is the simple fact that downloading games is just easier, with all the major consoles having integrated storefronts and usually, some form of sale going on.

Unsurprisingly, it is not only console games that have seen a huge increase in the number of people playing and downloading them. Online PC games and casino games have both seen a huge increase in demand. Players looking to access the best payout slots increased ten-fold since lockdown begun whilst the online video game distribution service Steam has seen a record number of users online since the Covid-19 crisis begun.

However, although this section of the game industry is indeed thriving, the same cannot be said of others.

Live Events

While all of this would seem to indicate that the games industry is surviving, even thriving, the event sector isn’t doing as well. All major live events have been cancelled, with the incumbent monetary losses being substantial. The Electronic Entertainment Expo (E3), for example, was cancelled this year for the first time since its inception in 1995. E3 is where the major game studios announce and show off upcoming games and hardware to members of the press and retailers. Whilst there have been many virtual and online presentations in lieu of the physical event from individual companies and studios, the planned full online event was cancelled as well, with the Entertainment Software Association stating that the disruption caused by the pandemic made it impossible to host an online equivalent.

With esports events being a major part of game advertisement in certain circles, you would think that with the cancelation of physical events, that gaming competitions would be suffering accordingly. This is true in a way, but not in the way that would be expected. As Harena Data founder Shawn Smith wrote:

"The nature of competitive gaming allows for more flexibility to meet demand while operating remotely, and many events, leagues, and competitions pivoted towards online participation and viewership -- two well-known Counter-Strike: Global Offensive leagues, Flashpoint and ESL Pro League, for example.

"The play-from-home format is what esports was created from in the first place, and the results for viewership in these competitions is booming.”

Merchandise

In the absence of other sports during this difficult time, more of an audience could potentially be gained. Despite this positive aspect, there is a downside. Merchandise sales are a large part of the esports industry, and with people having less disposable income in the past couple of months, this has suffered accordingly. Sponsors of the major players of these gaming tournaments put a lot of money into the events, and with the events moving to remote, online tournaments, they are missing out on a lot of revenue, which will inevitably drop down to consumers.

Despite all of this, gaming has proven to be an excellent way of keeping in touch with other friends who also play games, as well as potentially making new friends via online services such as Playstation Network and Xbox Live. This is the most important positive aspect of gaming in lockdown, and one which will hopefully remain once lockdown is over.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes