Over the past few weeks, the number of people who have turned to esports and video games has skyrocketed the coronavirus outbreak forces people to stay indoors to prevent spread. Several countries including Canada are emphasizing social distancing to prevent the spread of the pandemic and this means people are spending more time at home. The eSport industry has benefitted from this situation and for Canadian eSports companies, this is likely to translate into profits.
Before the COVID-19 pandemic, the Canadian eSports industry was showing signs of incredible growth. This was due to the changes in preferences among consumers for different modes of entertainment, increasing internet accessibility, change in technology and gaming devices as well as the popularity of high-end smartphones. Although the coronavirus has halted growth in various sectors the eSports space continues to grow.
Activision releases “Call of Duty: Warzone”
For instance, Activision Blizzard Inc. (NASDAQ: ATVI) is one of the companies that have made strides in this period. The company could not have released the “Call of Duty: Warzone” game at a better time than now. Activision released it on March 10th as a free-to-play game and within three days the game had exceeded 15 million downloads. This is a huge step for the company and the game is seen as a major driver of player engagement for the company going forward.
Equally, Activision has indicated that the “Call of Duty” will continue running online which will boost the company’s online viewership. Also, the company is gifting bonus pints to “world of Warcraft” players up to April 20th as well as released another type of “Call of Duty: Modern Warfare 2” with in-game gifts tied to “Warzone.
Take-Two Interactive in a new partnership with NFL
Another company that is making the best out of the coronavirus situation is Take Two Interactive Software Inc. (NASDAQ: TTWO) the publisher of Grand Theft Auto and Red Dead Redemption. The company is thriving thanks to its deal with the NBA for the launch of the NBA 2K League. With the NBA season, suspended enthusiasts and fans are turning to watch the NBA 2K tournament whose players are NBA stars. The tournament is currently on-going with finals expected on Saturday, April 11th.
Last month the company entered a multiyear partnership deal with National Football League. This will see the company create various non-simulation gaming capabilities with the first game expected to launch towards the end of 2020.
Coronavirus will not derail the launch of next-gen Xbox console
Microsoft Corp (NASDAQ: MSFT) has indicated that the coronavirus pandemic will not delay the release of its Xbox Series X console. Although the company’s gaming business has been doing badly there is optimism with the release of the next-generation console.
Currently, the company is enjoying record numbers for the Xbox Game Pass, its live streaming service Mixer as well as Xbox Live services. Although the release of its game only “Minecraft Dungeons” is derailed by the COVID_19 outbreak, on the other hand, the company has benefited from increased usage of Xbox.
