EDITOR: | February 7th, 2020

Coronavirus lockdown leads to more gaming and esports

| February 07, 2020 | No Comments

The esports and gaming sector may prove to be a surprise winner as ~45 million plus Chinese are in lockdown to prevent the spread of the coronavirus. The Chinese are huge gamers and love their esports. In terms of users, China is the world’s largest game streaming market, with approximately 4.9 times the monthly active users of the U.S. market in 2018.

Being confined to your home means spending more time and money online, which may prove a boost to the Chinese esports and gaming sector in H1 2020.

China coronavirus lockdown may boost Chinese gaming and esports

Some key stocks and ETFs to benefit from increased gaming and esports in China include:

  • Tencent (OTC: TCEHY) – The China leader in esports game streaming, and the online gaming sector. Tencent acquired Riot Games and now owns the very popular League of Legends game. Tencent owns the number 2 ranked game streaming platform in China named DouYu. DouYu primarily focuses on the live-streaming of games, and had 159.2 MAUs in Q1 2019. Tencent also makes various pc and mobile games.
  • Huya (NYSE: HUYA) – Huya is known as the “Twitch of China”, and is the number 1 ranked game streaming platform in China.
  • NERD and ESPO – For those preferring an esports ETF, then NERD and ESPO are two of the best to consider. They do have broader global esports and gaming exposure with NERD being more aligned to esports.

Enthusiast Gaming continues to fly under the esports radar

A report this week titled: “How a prominent B.C. family business created the biggest e-sports gaming network in North America”, looked at the history of Enthusiast Gaming and the Aquilinis family. Essentially the story describes the Aquilinis family involvement in building a giant esports pure-play company. What is amazing is how fast they have progressed and yet they still fly under most investor’s radar.

Enthusiast Gaming Holdings Inc. (TSXV: EGLX | OTCQB: EGHIF) is one of the fastest-growing esports companies globally, and one of only a few publicly traded, pure-play esports and gaming companies. Enthusiast Gaming has the largest gaming network in North America and the English speaking gaming regions. The long term vision for the Company is to build the largest, vertically integrated esports and gaming company in the world. The Company reaches more gamers than Twitch, IGN, Gamespot in the USA; and reaches over 200 million gamers on a monthly basis, with 1 billion page views.

Atari is opening its own gaming hotels in eight US cities

Atari is best known for its games which began back in the 70’s. But now the Company is responding to the esports phenomenon. Atari plans to open their own chain of branded hotels that will feature spaces for virtual reality and augmented reality, studios for streaming games, and venues for throwing esports events. What a brilliant idea.

Atari hotels focused on gaming and esports streaming and events planned to open in about 2 years


Torque Esports signs a deal with Microsoft Xbox Game Studios

Torque Esports (TSXV: GAME | OTCQB: MLLLF), via its subsidiary UMG Media, has signed a deal with Microsoft’s (NASDAQ: MSFT) Xbox Game Studios to operate and broadcast the Gears 5 Esports Challenger Series Finals. UMG Media is a leading platform for online tournament play and esports entertainment events.

Top esports games 2020

Games Radar took a look at the top esports games in 2020 and the top performers were (in no particular order):

  • Counter-Strike: Global Offensive
  • League of Legends
  • Fortnite
  • Dota 2
  • Call of Duty
  • Overwatch

I would add in Mobile Legends to the list.

Mobile Legends Vs League of Legends – What’s your favorite game?


Wrap Up

As investors look for ways to still make money if the coronavirus remains a concern in H1 2020 the gaming and esports sector is definitely one to consider.

The Atari gaming and esports hotel concept looks to be a big winner and I look forward to visiting an Atari hotel one day.


Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>

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