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Is 'Animal Crossing' and gaming a source of recession?  Analysts weigh the 2021 forecast

Is ‘Animal Crossing’ and gaming a source of recession? Analysts weigh the 2021 forecast

But can that path continue until 2021 due to the current recession and steep unemployment?

In March, with countries around the world locked up, “Animal Crossing: New Horizons” was released and set a record for Nintendo, selling 26 million copies for $ 60 each. People loved the ability to take “Animal Crossing” to a deserted island where they could be architects, giving them control and a sense of adventure.

“Overall, 2020 should escape reality, relieve stress and frustration, and lift the spirits when you feel compelled to do it at home,” said Carolina Milanese, a technical analyst at research firm Creative Strategies.

The time spent online was a huge selling point for gaming companies, capturing marketing opportunities from companies in unrelated businesses such as Uber Eats and Wendy
As livestream services such as Amazon’s Twitch and Facebook Gaming recorded record growth, more and more people became gamers and more and more people began to watch gamers. Facebook announced the launch of games on Android in October, and expressed hope that it will continue to grow in 2021.

Vivek Sharma, Vice President, Facebook Gaming, said, “I hope that as people begin to return responsibly to our previous Govt practices, many will continue to return to gaming.”

The new sports industry also benefited from the streaming hours as the traditional game was discontinued.

Not every gaming endeavor is a smash hit.

There have been two significant failures from technical agents, which analysts have compared to “oil tankers” that are difficult to highlight after being engaged in one direction. In July, Microsoft shut down its livestreaming service Mixer, which poured millions of dollars into the program. The company announced in October that the game would be discontinued in November, as soon as Amazon’s own initiative “Crucible,” a blockbuster like “Fortnight”, was launched.

How can 2021 shake up

However, most companies in the sports sector are positive that growth will continue until 2021 despite the recession and high unemployment.

“Even in this economic situation, we see a lot of people willing to cut $ 500 for a new console,” said Carter Rogers, analyst at Nielsen’s video game Guy Super Data. “We do not anticipate any gaming downturn due to economic factors, because a lot of people are stuck at home, shifting costs to gaming at will.”

Technology companies such as Google and Amazon are still investing in cloud gaming services such as Stadia and Luna, hoping to join the Sony-dominated console battles and Nintendo (NTDOF).

“The gaming business is a tough business … There’s a reason the big new entry into the gaming space from Xbox in the early 2000s didn’t come,” said Jack Pusser, sports director at Google Stadia, who previously worked. At Sony for over seven years. “Did we make a mistake? Of course. Are we learning from those mistakes? Of course. Will we make mistakes in the future? I hope we’re sure. Well. That’s part of the meaning of being in this business. But one thing is for sure: we owe it to ourselves.”

Google’s video site YouTube recorded its best year of 2020 with over 100 billion hours of gaming content. Ryan Wyatt, head of YouTube Gaming, said economic conditions such as the recession were “ultimately out of our control”, but that the company would continue its strategy of pleasing people next year, while at the same time attracting their attention.

Jessica Stout, a 31-year-old three-year-old with a YouTube channel of more than 7 million subscribers, told CNN Business that she hopes gaming growth will slow if people can get out safely again. Stout, who goes by the name “Upmaw” on his channel, said, “After being inside for so long, a lot more people are going to spend more time going out than ever before.”