Investors bet on permanence of lockdown gaming habits

Why are video games proving to be so profitable?

All of this growth is evidence to suggest that video gaming is the go-to entertainment source for a lot of us during this lockdown limbo phase of the year. Netflix streaming and screen time in general is on the up, obviously, but nothing seems to be quite as lucrative as video gaming.

There are a few likely reasons as to why this is the case. Online multiplayer in big budget titles gives you a reason to chat to friends you can’t see in person. My flat mates spend hours on Rocket League, Sea Of Thieves, or Minecraft with their headsets on at all times, chatting away to friends and family whilst gaming at the same time. It’s a perfect balance of conversation and entertainment.

Games are also easy to monetise on a day-to-day basis. Companies can offer players in game items, battle passes, seasonal content, and cosmetics that change regularly, providing constant incentive for consumers to part with more cash. It’s not just the case of paying a one-time entry fee or subscription – gaming companies can continually offer in-game loot to make a hefty profit. Given all the high percentage statistics coming from the top companies in the business, it seems this approach is working extremely well.

How will this continue post lockdown?

Investors are banking on this momentum continuing even after lockdown measures start being relaxed.

This approach makes sense given that live venues won’t really be able to fully operate until at least 2021, aside from the odd drive-in show or novelty event. We’re still going to be relying on televisions and consoles for our entertainment fix well beyond the end of social distancing measures, making investment all the more worthwhile for big businesses.

Games can also house events such as virtual concerts and live screenings of shows. Travis Scott recently ‘performed’ virtually in Fortnite and it was seen by over 28 million people. Those are wildly impressive numbers that would be a big deal for even the highest budget TV shows out there.

The gaming industry is nothing to be scoffed at, and it seems that lockdown and indefinite isolation may actually be helping it to become even more dominant than it already was. Before long we may all be the property of Epic Games, doomed to play Fortnite forever more – though we’ll cross that bridge when we get to it.