- The video game industry is encroaching on the territory of traditional and social media
- Keep an eye on these key themes for long-term success
A common symptom of the first lockdown was chronic Animal Crossing: New Horizons consumption – a video game developed by Nintendo (JP:7974) that stimulates a peaceful island life of harvesting fruits, building furniture and running around with friends through virtual towns. The game became such a popular substitute for real life that its virtual ‘Bank of Nook’ slashed its interest rate by 45 basis points, in step with the European Central Bank and the Fed, in an attempt to encourage more adventurous saving. Nintendo sold 22.4m copies of the game in the first four months after its release.
Last year was an exceptional one for the video game industry, propelled by two important catalysts. First, an environment in which everyone was forced to stay inside and not socialise. Second, industry titans Sony (JP:6768) and Microsoft (US:MSFT) released new consoles: two models of the PlayStation 5, and the Xbox Series X and Series S. New generations only typically reach the market once every seven years.