ironSource CEO: gaming is more than just a COVID play
- VanEck Video Gaming and eSports is up 100% since the start of the pandemic.
- Tomer Bar Zeev doesn't expect the uptick in gaming to fade away post-COVID.
- The ironSource CEO says gaming will continue to lead the app economy.
The VanEck Video Gaming and eSports ETF (ESPO) is up nearly 100% since the start of the pandemic, and ironSource Ltd (NYSE: IS) CEO Tomer Bar Zeev doesn’t see an end to this trend in the near future.
Highlights from Zeev’s interview on CNBC’s ‘TechCheck’
Zeev agrees that video gaming and eSports was a beneficiary of the global pandemic but says the segment is now much more than just a COVID play. On CNBC’s “TechCheck”, he said:
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When COVID started, we saw an uptick of roughly 10% in the time that users spent within games. As the world reopened, it pretty much stayed the same. So, we think it’s the new norm. We don’t think we’ll see any change in that regard.
According to Statista, much of the increase in hours spent on video games was attributed to the new gamers in 2020 who turned to the industry in search of indoor means of entertainment amidst COVID restrictions.
Gaming is bigger than film and music combined
According to Zeev, gaming is the fastest-growing segment within the app economy, and it will continue to lead the industry on growth in gaming library as well as relevant platform software.
The gaming ecosystem within the app economy is growing super-fast. Gaming is the biggest part of the app economy, it’s bigger than the film industry and the music industry combined. So, it makes perfect sense that it will grow all around. It will continue to lead the app economy.
Earlier this week, Take-Two Interactive said it will buy Zynga Inc for $12.70 billion in cash and stock to expand its footprint in mobile gaming. Zeev expects such consolidation to continue as companies move to benefit from the fast-growing gaming economy.