COVID's role in video game growth: soaring console sales

Reports indicate that interest in computer games has increased, because people around the world have gone into lockdown due to the spread of the coronavirus. Whether it is the striking growth in Twitch (Twitch) viewership, the growth in concurrent Steam (Steam) users, or the surprising sales of Animal Crossing, interactive entertainment is one of the ways people keep themselves occupied today and distract themselves in these difficult days. With this in mind, even at first glance one can see COVID's role in the growth of video games among the public.

Across all markets examined, in week 12 (Monday, March 16 to Sunday, March 22; Esfand (February–March) 26, 98 to Farvardin (March–April) 3, 99), 4.3 million games were sold, a 63 percent increase compared with the preceding weeks. Part of this increase was due to the release of a major new Nintendo game, Animal Crossing: New Horizons, which was a popular title in several markets. But even compared with the performance of previous weeks, we see 44 percent market growth. So video game sales are definitely rising because of the spread of the virus.

COVID has increased digital video game sales

In this period, 2.74 million games were downloaded, indicating 52.9 percent growth compared with the previous week. In France, where lockdown began on Tuesday, March 17 (Esfand 27), digital downloads increased by more than 180 percent. Spain entered lockdown on Saturday, March 14 (Esfand 24), and in (Monday, March 9 to March 15; Esfand 19 to Esfand 25) digital sales increased 142.8 percent and then had a further 23.3 percent increase.

Italy is a country that, with the shutdown on Monday, March 9 (Esfand 19), has spent a longer period in lockdown. There, in the first week of lockdown, digital download sales increased 174.9 percent. In the second week of lockdown, digital download sales fell 11.7 percent compared with the previous week, but were still above the country's normal level. It is noteworthy that digital game sales in Italy increase as the lockdown continues, especially when game stores, including PlayStation, reduce download speeds to protect online infrastructure.

COVID's role in the growth of video games among young people and adults is very pronounced.

In markets that were not in lockdown but were in a social-distancing phase, we still saw an increase in digital downloads. In the United Kingdom, digital downloads increased 67.4 percent compared with the previous week, and this was before the country entered lockdown (data for this period will be available later this week). Germany saw 60.2 percent digital sales and Australia a 26.5 percent increase in downloads. Neither of these two markets has entered lockdown so far.

In markets that were not in lockdown but were in a social-distancing phase, we still saw an increase in digital downloads.

Physical sales are, for now, continuing

In all 17 physical retail markets, game sales, with an 82 percent increase compared with the previous week, reached 1.58 million copies sold in week 12. Even when we exclude Animal Crossing: New Horizons and Doom: Eternal from the sales figures, physical sales still grew 10.8 percent compared with the previous week. As expected, markets that were practicing social distancing and were not in full lockdown had the best sales figures. In England, during week 12, physical game sales increased 218.2 percent compared with the previous week. This was primarily due to the release of Animal Crossing: New Horizons and Doom: Eternal, but even when we exclude these games, physical game sales had a notable 83 percent growth. Australia also experienced similar results, with a 278.5 percent increase in physical sales including Animal Crossing and Doom, and 86.7 percent without them. This indicates that consumers are buying physical goods to pass the time indoors.

In markets that are in full lockdown, the results are mixed. In France, physical sales including Animal Crossing sales figures increased 70.2 percent, and when we exclude it, they fall 1.5 percent. Meanwhile, the United Kingdom has reported first-week lockdown sales (Farvardin 3 to Farvardin 9) above the usual level. Although game sales declined compared with the previous week when Animal Crossing: New Horizons was introduced, they are still above the usual level. In fact, compared with the week before Animal Crossing, physical game sales increased by about 100 percent.

But we are seeing problems in the physical software markets of Spain and Italy. In Spain, physical sales declined 5.1 percent compared with the week Animal Crossing was introduced, and without including Animal Crossing sales we see a 50 percent drop in sales. Meanwhile, one week before lockdown, physical game sales in Italy increased 8.4 percent. In the first week of lockdown, sales fell 8.7 percent, and in the second week of lockdown, once again, this time we saw a 21.8 percent drop in sales. If we do not include Animal Crossing: New Horizons sales, physical sales in week 12 fell 48 percent. If the sales trend in Spain and Italy occurs anywhere else, the first week of lockdown may be bearable, but during the second week stores should prepare themselves for a 50 percent drop in sales.

COVID multiplied console sales

In week 12 (Esfand 26 to Farvardin 3), console sales, with a 155 percent increase, reached 259 thousand and 169 units. This was a global figure and brought large gains for the Nintendo Switch, PlayStation 4, and Xbox One. It appears that these sales were not much affected by lockdown. In the first week of lockdown in Italy, console sales grew 84 percent. In the second week of lockdown, console sales fell only 1.8 percent. In Spain, in week 11 (Esfand 19 to Esfand 25), which was the start of lockdown, sales increased 27.7 percent. The following week, sales increased again by 66.1 percent. In France's first lockdown period, console hardware sales increased 140.6 percent. This was while the week before that we also saw a 17 percent increase in console sales.

In countries experiencing social distancing, console sales likely rose even further in preparation for spending more time at home.

In countries experiencing social distancing, console sales likely rose even further in preparation for spending more time at home. In England, during week 11 console sales increased 126.6 percent and then in week 12, 250 percent. Week 11 saw a 19.6 percent increase in console sales, and this figure in week 12 rose again by 285.6 percent. The sudden increase in console sales over the past two weeks was such that console hardware markets, after enduring more than two months of stagnation, returned to their position. The upward sales trend shows that the reason for the large number of new console owners is the coronavirus lockdown.

COVID is not all bad

Video game makers are among the few people who would probably want to thank COVID for its warm presence. COVID's role in video game growth in 2020 is lost on no one; from console sales to the making and sale of new games. Staying at home requires something like the patience of Job and is extremely exhausting. Video games, in the meantime, help people spend their leisure time more companionably. The turn of adults who have to stay at home during lockdown toward video games has been highly influential in this industry's growth. To access data on this thriving industry, you can visit Namafar.