The escalation of the coronavirus and its effect on global markets has been extensive over the past few weeks. Here at Konvoy, we have been receiving a flurry of questions about its effect on the video game industry, our portfolio, and our views going forward.
Konvoy’s Macro View: we believe that this is the beginning of a recession. However, we believe that the video gaming sector is one of the most recession-resilient sectors in the world right now. It will continue to grow because entertainment spend continues to be resilient to income fluctuations and in a more remote world, people will watch and play more video games, not less.
Looking at the last two recessions, there is not only historical precedent for the continued growth of the video gaming industry, but also that the operators we have invested in can thrive as they navigate this upcoming economic climate.
Below are a few articles that summarize what’s going on in the industry:
Lastly, I found Brad Feld’s post today quite encouraging. It highlights the wise words from C.S. Lewis back in 1948, at the dawn of the atomic age.