Coronavirus: The continuing effect on the gaming industry
Classified as a pandemic by the World Health Organization, the COVID-19 outbreak is currently affecting almost every aspect of our lives and as a result multiple gaming companies are announcing delays and interruptions.
The outbreak has disrupted life across the globe as daily activities in public spaces and workplaces are put on hold while officials try to contain the virus. With much of the tech industry, including gaming, relying on China for production and materials, a ripple effect was quickly felt. As the virus spreads, further impacts on games, conferences, and hardware arise.
The launch date of a number of game products has been impacted including the Nintendo Switch production of consoles, games and accessories for the Japanese market. The coronavirus outbreak has also caused the cancellation of a number of significant industry events including; EGX Rezzed London, E3 2020, League of Legends and Dota 2 – although some organisers have muted the possibility of digital versions of events to enable key game announcements to go ahead.
On the upside however, more people are now turning to gaming. Gamesindustry.biz reports that global viewership has increased by 10% on Twitch and 15% on YouTube Gaming. One of the challenges brought about by this international crisis is the practice of social distancing, and as many companies have been forced to close their offices across the world and families are now in lockdown, people are increasingly turning to video games to pass the time and interact with friends and family virtually.
This has led to an increase in users jumping online to play games ranging from Epic’s “Fortnite” to Activision Blizzard’s “Call of Duty: Warzone,” which saw 15 million players in just four days following its launch on March 10. In Italy, so many people have been playing “Fortnite” that it’s begun to stress the country’s telecom systems, with a reported 70% increase in web traffic usage in the time since Italy was put on lockdown on the 9th March.
With so many people playing, and likely many downloading new games, industry stocks are performing better than the broader indices by as much as 10%. And, with two new home consoles from Microsoft and Sony coming by the end of the year, the industry could see greater growth come November.
What we’re doing at GG Insurance Services
At GG Insurance Services, our priority is the health and wellbeing of our employees and clients, whilst continuing to provide an exemplary service to our clients around the world.
In light of recent developments, our colleagues in our London and Peterborough offices will work from home until further notice. We are also working closely with our markets to ensure your business continues to be handled as usual.
We are constantly reviewing the situation and will adapt as required and advised during this challenging period.
If you have any questions or concerns you would like to discuss with our team please don’t hesitate to get in touch
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