A very strong 2020 for the video game industry could continue well into the new year.

Morgan Stanley analyst Brian Nowak says the pandemic “likely pulled forward four years of gamer adoption.” 

Six of the largest game publishers are expected to report a combined $24 billion in 2020 revenue, up 19% from 2019.

That uptick largely accumulated prior to the November launches of new Xbox and PlayStation consoles, both of which are still in short supply. As hardware becomes more available, publishers anticipate an increase in game spending. 

Activision Blizzard — whose “Call of Duty: Black Ops Cold War” sold 5.7 million units in November 2020 alone — expects a 7% growth in revenue in 2021. The game publisher’s 2020 net bookings are projected to increase 74% year-over-year. 

Electronic Arts, the industry’s largest publisher whose best-selling 2020 release was “Madden NFL 2021,” anticipates an 8% increase in revenue this year.

Spending Shift: U.S. movie ticket sales were down 80% to $2.3 billion in 2020. The concert industry lost $9.7 billion in box office revenue during the same period, and major sports leagues are still largely fanless. 

Without a wide scale reopening of other entertainment options in sight, consumers should have more discretionary income for games.

The executive behind the special purpose companies that helped take DraftKings and Skillz public have launched another SPAC: Spinning Eagle Acquisition. 

Former MGM CEO Harry Sloan and SPAC veterans Eli Baker and Jeff Sagansky filed for a $1.5 billion IPO late last month.The filing includes the ability to spin off any unused capital for another SPAC, with shares going to Spinning Eagle investors.

It’s one of the largest SPAC filings to date.

Spinning Eagle is the seventh SPAC by the group, which have included: 

• Flying Eagle Acquisition raised $690 million before merging with Skillz
• Diamond Eagle Acquisition raised $400 million before merging with DraftKings

The new SPAC is not focused on acquiring a specific type of company.

Last year, 248 SPACs went public, raising more than $83 billion. Ninety-five of them announced deals to take private companies public.

In comparison, 59 SPACs raised $13.6 billion in 2019. 

DraftKings is one of the most successful SPAC deals yet. The value of its shares has increased 131% since the company debuted on the stock market in April.

Snowshoeing is shaping up to be the hot outdoor activity this winter, much like bicycling was in the spring.

From August to October, snowshoe sales grew more than 250% year over year, rising more than all backcountry equipment sales combined, according to NPD Group. 

• REI says its snowshoe sales are up fourfold, and cross country ski sales have tripled. The outdoor retailer’s adult snowshoes range in price from about $160 to $300, while a children’s pair starts at $40. 
• Snowshoe participation grew more than 12% last season, to 3.6 million participants, according to market research firm Snow Sports Insights.

“Non-lift-assisted” winter sports have generally seen a rise in interest, as they’re better suited for social distancing and more cost-effective. Snowshoes attach to typical winter boots, so no dedicated footwear is required.

Bike sales were up nearly two-thirds over the prior year in the spring as people flocked to new outdoor activities under COVID-19 pandemic conditions.

In June alone, sales of sport performance road bikes grew 87%, gravel bikes were up 144% and e-bikes jumped 190%.

Epic Games has a site for its next headquarters: a shopping mall.

The “Fortnite” developer acquired the 87-acre Cary Towne Center in Cary, N.C., for $95 million and will turn the site into a new headquarters by 2024. 

Turnbridge Equities and Denali Partners purchased the site for $31.5 million in early 2019.

With retailers shifting online, malls across the U.S. are struggling. Even prior to the pandemic, legacy anchor stores like Sears and J.C. Penney shuttered hundreds of locations. J.C. Penney alone accounted for 6% of mall space in the U.S.

Early pandemic shutdowns worsened the outlook, with mall-based retailer earnings dropping 256% in the first half of 2020.

Mall owners continue to look for ways to shed or diversify their properties as retailers vacate storefronts.

Major mall owner Simon Property Group invested in Allied Esports in 2019 with extensive plans to open esports arenas in malls across the U.S. Last summer, Amazon also emerged as a potential suitor for Simon’s empty stores.