Demand For Gaming Soars As Stores Run Out Of Console Stock
Demand for gaming during COVID-19 has seen the value of Companies such as Nintendo and Sony soar.
In Australia JB Hi Fi and EB Games are struggling to get stock with back orders mounting for consoles from Microsoft, Sony and Nintendo.
In Australia and the USA scalpers who are buying up scarce supplies of the Sony PS5 are threatening the long-term health of Sony’s most important product.
Scalpers, who buy devices at retail and then resell at a higher price, have long been a challenge in the games business. But the problem is particularly acute this year because the coronavirus has squeezed production and pushed more console sales online — where scalpers use sophisticated bots to buy up the PlayStation 5 and Microsoft Xbox.
Nintendo had its biggest gain in more than a year in Tokyo, as investors eyed demand for game consoles with the peak holiday season approaching. The increase in demand for Nintendo stock has not been isolated to one Company, Sony has also seen demand for their PlayStation 5 soar.
with shares in the Japanese Company reaching a record, surpassing the 10,000 yen per share mark for the first time since 2001.
Shares in Nintendo rose 6.6%, reaching the highest level since December 2007, amid demand for its Switch console and a broader buying of Japanese gaming stocks.
“Investors have their attention toward game makers amid the recent coronavirus spread and the upcoming Christmas season,” said Ryuta Otsuka, a strategist at Toyo Securities Co.
According to Bloomberg Videogame makers have gained almost across the board from the surge in stay-at-home stocks this year, with gaming a chief beneficiary of changing customer habits due to the coronavirus pandemic.
Combined hardware and software sales in the home console market rose in November compared with the same month in 2019.