The gaming industry emerged as one of the few winners of the COVID-19 crisis, as more people than ever started playing games and streaming gaming content amid the lockdown. The gaming companies had to quickly adjust to this unprecedented growth, which boosted their revenues and the market cap.
According to data presented by SafeBettingSites.com, the combined market capitalization of Activision Blizzard, Nintendo, and Electronic Arts, as the three largest gaming companies, hit $185bn last week, almost a 50% increase in a year.
In April 2020, the combined market cap of Activision Blizzard, Nintendo, and Electronic Arts amounted to $125.2bn, revealed the YCharts and Yahoo Finance data. This figure jumped by almost $60bn year-over-year, as their revenues and user bases surged amid the lockdowns.
As the biggest gaming company globally, Activision Blizzard witnessed the most significant increase. The market cap of the gaming giant, which owns Activision Publishing, Blizzard Entertainment, King, Major League Gaming, and Activision Blizzard Studios, surged by almost 60% YoY. In April 2020, the combined value of all Activision Blizzard’s shares stood at $46.6bn. This figurXboxe jumped to $74.2bn last week.
The company’s financial results also revealed revenues jumped by $1.6bn or 32% year-over-year and hit a record $8bn in 2020. Blizzard’s console segment witnessed the biggest growth in 2020, with revenues rising by 45% to almost $2.8bn. PC segment hit over $2bn in revenue last year, 19% more than in 2019. The mobile segment followed with a 16% YoY increase to $2.5bn in revenue.
Nintendo’s Market Cap Jumped by 46%, Electronic Arts Witnessed 32% Growth
As the second-largest gaming company, Nintendo also witnessed an impressive market cap growth in the last year. In April 2020, the combined value of shares of the Japanese gaming company stood at $48.1bn. This figure jumped by 46% year-over-year to $70.5bn last week.
Also, Nintendo’s hybrid handheld and stationary console Switch witnessed an influx of new fans in 2020. With millions of people spending more time playing video games amid lockdown, the popular gaming console hit a new record 21.1 million sold units last year, double than PlayStation 4 and Xbox One combined.
As the third-largest gaming company globally, the market capitalization of Electronic Arts jumped by 32% YoY and hit $40.4bn last week. Statistics show the revenues of the company behind some of the world’s most popular game franchises, including Battlefield, Apex Legends, The Sims, Need for Speed, and Plants vs. Zombies, hit over $5.5bn in 2020, an 11% increase in a year.
The console segment generated $3.7bn or nearly 70% of that value. PC and mobile segment followed with $1bn and $727 million in revenue, respectively.