By Chris Forrester July 14, 2021 A report from equity analysts at investment bank Berenberg on the games and gaming sector, and covering such high-profile businesses as Ubisoft, Electronic Arts, Activision and others, says that while some observers were forecasting a collapse of the sector as the world comes out of Covid, the bank suggests otherwise. Berenberg says that after more than a year of significantly boosted player engagement and accelerated player base growth as a result of lockdowns across the globe, we believe that expectations of a complete reversion to previous levels of video gaming engagement are overcooked. “Instead, we expect an acceleration of structural growth factors, such as gaming as a form of socialising. While we do expect a dip in engagement as global restrictions ease, we view this as a short-term bump in the road before a continuation of tailwinds within the sector,” says Berenberg. The bank recognises that Covid has changed the game, saying: “While some investors expect a cliff-edge drop in engagement as we emerge from the pandemic, user data (such as Steam and Twitch statistics) tell a story of a more robust industry. As we dig into the specifics of the motives for gaming,…
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Bank: Video games sector to stay robust
