As the video game industry gears up for yet another virtual expo (Gamescom 2021), the business is building on la boom last year stemming from  such factors as pandemic lockdowns – which drew in new players and re-engaged some older ones — and the introduction of new platforms, which always boosts spending on new games from the core audience.

Several videogames companies – Electronic Arts (EA), Activision Blizzard Entertainment and Zynga – recently forecast double-digital revenue increases for 2021 as they reported second quarter earnings. But they also noted some slowing in new players signing up for mobile and online titles starting in late May as pandemic-related restrictions continued to lift. Demand from core gamers, however, remained strong.

Uneven results, depending on geography
“Some of the new players that joined Zynga in 2020 and this year got to go out of the house as COVID restrictions were easing and have started to play less,” said CEO Frank Gibeau. But EA and Activision reported little change in their business. EA CEO Andrew Wilson says there’s “strength” across the company’s business, but concedes “the world is in different phases in different places.”

While the rate of “new” players signing up for multi-player games has slowed – that may change given the recent uptick in Covid-19 infection rates — there is a new dose of licensed titles including Star Wars (Zynga), Harry Potter (Zynga), PGA Tour Golf (Electronic Arts), Formula 1 (EA Sports) and FIFA 22 (EA Sports) mobile and console games on tap through the fall and spring.

Throw in updates of existing titles – Niantic’s Pokemon Go and Sega’s Puyo Puyo Tetris 2 have received new content – and the potential for surprise hits (remember Among Us of a year ago or the Roblox hit Piggy this year?) and outbound licensing continues to come into play. For example, Concept One recently signed agreements for Pokemon and the Xbox brand (headwear, luggage), while Ubisoft hired Beanstalk’s Tinderbox Division  to represent its “Far Cry” and “Just Dance” titles in Europe.

Picking licensing winners
“The evergreens have always been around, but the pandemic brought in a new fan base and brought back the older gamers with nostalgia,” said one supplier of fashion accessories. “With all the different platforms available now and so many games being released, there are more sources for licensed properties, and with multi-player games there is an ever-larger audience.

“But it’s also a question of how many of the games can translate into consumer products because there is only so many that can make that jump given attention spans and being able to keep the property top of mind.”

Some other developments:

• Perhaps in part to renewed interest in golf during the pandemic, the sport is playing a more prominent role in videogames. EA is launching “EA Sports PGA Tour” next spring, the first video game to feature all four men’s major tournaments since 2013’s “Tiger Woods PGA Tour 14”. The game will let users play the majors starting with the Masters Tournament at Augusta National (April 4-10, 2022).
• Zynga entered the sports business for the first time, acquiring Chinese game developer StarLink and its mobile game “Golf Rival” from Betta Games for $525 million. StarLink claims its game has been downloaded six million times so far this year, making it the second largest mobile golf game globally behind “Golf Clash” from Playdemic, which itself was acquired recently by EA. And Take-Two Interactive says its “PGA Tour 2K21” has been downloaded two million times since launching in August 2020, while Nintendo launched “Mario Golf: Super Rush” on June 25.
• Star Wars is returning as a broader force in video and mobile games. With EA’s eight-year exclusive having ended, Ubisoft’s Massive Entertainment Division is developing a new title, while Zynga has postponed the introduction of the “Star Wars: Hunter” mobile title to 2022, although a “soft” launch is expected in the fourth quarter.
• Microsoft is expected to release details at Gamescon of the latest version of its the licensing-heavy Halo franchise, “Halo Infinite,” that’s due to be released in the fourth quarter. Developer 343 Studios released an initial multiplayer test in July. During a FanFest event on August 24 – the day before the virtual Gamescon begins — Microsoft will showcase both Xbox Game Studio titles as well as those from third-party developers.
• Fortnite went back on tour again, this time as part a “Rift Tour” with singer Ariana Grande, a virtual concert version of which debuted in the game last weekend. The concert featured a motion-captured version of Grande that allowed fans to dance to one-minute clips of her songs, including “7 Rings”, “Be Alright” and others. The event was a follow-up to April 2020’s Travis Scott’s “Astroworld” concert that featured an eight-minute set.
• Roblox remains ripe for licensing. PhatMojo, which launched figures based on the “Piggy” game, is readying a similar collectibles strategy for Bee Swarm Simulator in 2022 and has four other properties in the hopper