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Call of Duty (above) and other games from Activision Blizzard were played online by more than 100 million people a month in the first quarter of 2020. Photo: Activision

Gaming leads entertainment industry, from Call of Duty to Candy Crush, as millions stay in

  • With outdoor activities banned or cut short, the video game industry is seeing a huge boost in business
  • Sales of consoles, online games and software all show large gains, the only losers are spectator based e-sports
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Video games have been seeing exceptional growth during the coronavirus pandemic that has shut down real-world activity and kept billions indoors – and it’s not just the usual young crowd who has been playing.

Evidence of the gaming surge was seen in strong results last week from Activision Blizzard, which said an average of 102 million people played its games such as Call of Duty online every month during the first quarter of this year. The company reported growth in titles such as Overwatch, World of Warcraft and the popular colour-matching smartphone game Candy Crush .

Electronic Arts saw players flock to online sports in hit franchises devoted to soccer, baseball, and American football. “They’re gaming so much they are wearing out their devices,” says analyst Ted Pollak of Jon Peddie Research.

A report by Futuresource Consulting called gaming “the shooting star of the entertainment industry” that is expected to grow its share of the sector to 36 per cent by 2023 from 31 per cent last year. “Following a record-breaking year in 2019, with gaming software generating US$143 billion of consumer spend, the industry is now poised for further growth, with captive audiences worldwide acting as a catalyst.”

Sales of the Nintendo Switch console doubled in March 2020 compared with a year earlier, with many users playing games like Animal Crossing: New Horizons (above).
NPD analyst Matt Piscatella says sales of the Nintendo Switch gaming console doubled in March from a year earlier, with many of those users playing games like Animal Crossing: New Horizons, the fifth of the franchise that takes people to explore a deserted island.

“Existing gamers have more time to spend because of the lockdown, and schoolchildren are at home,” explains Futuresource analyst Morris Garrard.

Mobile gaming is expected to grow 12 per cent this year. Photo: Ben Sin

“We were expecting the console segment to see a dampened year as a result of people putting purchases of software and hardware ahead of [new] console releases. But with people stuck at home, you have a massive base of existing content that people are engaging with.”

The research firm has boosted its forecast for mobile gaming, now expected to grow 12 per cent worldwide, helped in part by the deployment of fast fifth-generation or 5G wireless networks in some parts of the world.

The lockdown gaming craze appears to be luring people of all ages. Young children are turning to titles such as Roblox, which allows for creative, user-generated experiences. The older crowd is using online versions of the Chinese tile game mahjong, part of what marketers call the “grey gamer” phenomenon.

There has been an increase in people playing online mahjong in China. Photo: courtesy of JoyGames

“With movement restrictions, time-rich retirees are isolated and turning to mobile games,” says Garrard. “It’s a substitute for meeting up with friends and playing games face-to-face.” He adds that there has been a pronounced boost in online mahjong play in China.

The latest trends are helping gaming firms weather an economic slump caused by the pandemic. Nintendo, for example, doubled its advertising spending on US television in the March-April period compared with a year ago, according to research firms.

But e-sports – the spectator segment of gaming – appears to be suffering as a result of the inability to hold in-person tournaments. Some competitions are still being organised by private clubs and groups.

The only sector of gaming suffering at the moment is spectator driven e-sports. Photo: Ted Aljibe/AFP

“People who would normally watch Formula 1 auto racing can now [watch] real drivers competing against experienced players on virtual circuits, on Twitch,” says Laurent Michaud, head of development at the French-based school of applied arts ESMA in Montpellier.

After the pandemic, gaming is expected to stay strong as people get attached to titles and player communities. Pollak says people will acquire a taste and look for new titles as they are released. “It is reasonable to expect some delays in new games,” he says, referring to teams of game makers being among the ranks of those working remotely instead of in offices.

But the analyst adds that he expects “a pent-up demand” for new titles and that “when new games come out, they should do better than ever.”

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