The current lockdowns being implemented to curtail the ongoing coronavirus pandemic have given a boost to video game companies.
According to Activision Blizzard and Electronic Arts, two of the biggest video game companies in the world, they have seen a surge in demand for video games as lockdowns due to the coronavirus pandemic forced people to stay at home.
Financial boost to video game developers
For the first three months of 2020, the financial performance of both video game firms significantly improved. Overall, the gaming industry has seen a spike in sales in recent weeks as more people turn to their entertainment services.
Activision Blizzard, the developer of the Call of Duty (CoD) video game series, said that during the quarter, an average of 407 million people had played its games online monthly. Its latest CoD game, "Call of Duty: Warzone", has attracted over 60 million players since it launched in March.
The firm also mentioned that the number of players in its Overwatch and World of Warcraft games have continued to increase while its mobile game Candy Crush has maintained its spot as the highest-grossing franchise in American app stores.
As a result, Activision Blizzard's net revenues from digital channels reached $1.44 billion.
Activision Blizzard chief executive officer (CEO) Bobby Kotick said: "In the face of so many difficulties, our employees have made certain that the joy, the engagement, and the benefits of gaming remain an effective way to help keep our 400 million players around the world connected and safe."
Meanwhile, Activision's rival company Electronic Arts announced that its latest FIFA football game has attracted over 25 million players while its American football game "Madden NFL 20" scored the highest online engagement numbers in the franchise's history.
The gaming giant said its net income had doubled to $418 million as it recorded a revenue of $1.4 billion in the first three months of the year.
Electronic Arts CEO Andrew Wilson said: "We're humbled to see people around the world connecting through our games during this unprecedented period."
According to analysts, they expect the demand for video games to remain strong as long as stay-at-home orders remain in place.
Increasing competition in the industry
Kotick discussed how esports is in a position to grow, saying: "We're still on and we can deliver content ... we'll be able to have a full season. Live sports, it's not clear when they're going to come online and esports are the only thing available for people to watch."
"I think it will make the broadcast rights more valuable. I think it will attract more sponsors. I think that it will attract more audience," he said.
Riot Games, popular for its game, "League of Legends," will be launching its new shooter game called "Valorant", which could compete with Blizzard's Overwatch. It has also recently debuted its card game "Legends of Runeterra" on PC and mobile, which is similar to another Blizzard game "Hearthstone".
Kotick commented: "We take all of our competitors seriously. And I think Riot is a really good company with really great game development talent. We're never dismissive of great games."
