Video game sales skyrocket to continue driving gaming ETFs – August 27, 2021
Another month, same story! Video game sales continued to soar in July after a bumpy little run in April 2021 amid the resurgence of coronavirus cases. In fact, total consumer spending on games for seven months increased 14% year-over-year to $ 33.5 billion.
Commenting on the surge in sales, games industry analyst Mat Piscatella of the NPD Group reportedly said, “Hardware is July’s biggest story, continuing what we’ve seen since the launch of the PS5 and Xbox Series consoles. The strong growth this year is due to continued shortages of inventory, so actual demand is even higher than indicated. We just can’t get enough units from the new consoles, and it’s unclear when that might change. Growth in mobile, subscription and post-launch spending was boosted, while in accessories, gamepads did the heavy lifting, ”as mentioned in a GameDaily article.
Video game sales continue to increase
Data recently released by The NPD Group highlights that the video game industry, including packaged media, digital, consoles and accessories, had strong sales in July, with total spending of $ 4.60 billion. dollars, reflecting 10% year-over-year growth.
Hardware spending rose 98% year-over-year in July to $ 323 million, thanks to wider distribution of Microsoft’s next-gen consoles (MSFT – Free Report) and Sony, according to the same NPD Group report. The metric also hit the peak last month since 2008. Spending on consoles has jumped 50% year over year to reach $ 2.7 billion year-to-date. Nintendo (NTDOY – Free Report) Switch continues to be the top-selling console for the 32nd consecutive month in terms of units sold, according to a GameDaily article.
Consumers also spent generously on gaming software, with sales increasing 6% year-over-year to $ 4 billion. Year-to-date software revenue increased 12% from the same period a year earlier to reach $ 29.45 billion.
Titles like The Legend of Zelda: Skyward Sword HD, Call of Duty: Black Ops: Cold War, Monster Hunter Stories 2: Wings of Ruin, Mario Kart 8 and Minecraft were among the top five best sellers in July. What surprised market analysts were the The Legend of Zelda: Skyward Sword HD grabbing the top spot despite a recent outing, according to a GameDaily article.
Game developers continue to innovate and attract users every day and keep the old ones. They increase the engagement of existing players by providing new titles, levels, arenas or environments as the games require at regular intervals. Mergers and acquisitions continue to support the gaming space.
Video game ETFs to keep winning
It looks like the boom in the video game space may endure even in the post-pandemic era, as the epidemic has significantly altered the lifestyles and preferences of American citizens. Against this background, investors can take a look at the following video game ETFs:
ETF Roundhill BITKRAFT Esports and digital entertainment (NERD – Free report)
The fund is designed to provide investors with exposure to esports and digital entertainment by providing investment results that closely match, before fees and expenses, the performance of the Roundhill BITKRAFT Esports Index. He has 34 shares in his basket. With assets under management of $ 80.1 million, the fund charges 50 basis points (bps) as an expense ratio (read: ETF Areas in Spotlight as Delta Variant Cases Rise).
VanEck Vectors Video Games & Esports ETF (ESPO – Free report)
The fund aims to replicate as closely as possible, before fees and expenses, the price and return performance of the MVIS Global Video Gaming and eSports Index, which is intended to track the overall performance of companies involved in the development of video games. , esports, and hardware and software. He has 26 shares in his basket. With assets under management of $ 730.1 million, the fund charges 55 basis points as an expense ratio (read: Nvidia ETFs to Buy on Blockbuster Q2 Earnings).
Global X ETF on Video Games and Electronic Sports (HERO – Free report)
The fund seeks to invest in companies that develop or publish video games, facilitate the broadcast and distribution of video game or esports content, own and operate in competitive esports leagues, or produce equipment used in games or esports. video games and esports, including augmented and virtual reality. He has 40 shares in his basket. With assets under management of $ 552.1 million, the fund charges 50 basis points as an expense ratio.
ETF Wedbush ETFMG Video Game Technology (GAMR – Free report)
The fund provides pure and diversified exposure to a dynamic intersection of technology and entertainment. It also generally matches the price and yield performance of the EEfund Video Game Tech Index. The index is designed to reflect the performance of companies involved in the video game technology industry, including game developers, console and chip makers, and game retailers. He has 135 shares in his basket. With $ 110.2 million AUM, the fund charges 75 basis points in expense ratio (read: 5 bargain ETFs to harness renewed technological strength).