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COVID-19 and video game sector - Stay at home boosts sales

June 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The video game sector has had minimal disruption from COVID-19 because games can be made remotely at home and played at home. With more people confined to their homes the online distribution platforms such as Steam, PlayStation Network and Xbox Live have seen significant surges in usage -  Steam, for instance, had 24m concurrent users in March, setting a new record. You might imagine that these were all kids who should have been sitting their GCSEs last week but this isn’t the case as gaming has become a popular adult pastime also and unlike the games that  I played as a boy, these days games often have no defined endpoint. As Frontier’s CEO David Braben put it, a game can provide hundreds and even thousa ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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