Impact of COVID-19 on Stock Prices in the Global Video Game Market

Martin Smrt; Anna Hodinova; Robert Kuchar

doi:10.23762/FSO_VOL13_NO1_1

Published : 2025-03-29

Vol. 13 No. 1 (2025)

Impact of COVID-19 on Stock Prices in the Global Video Game Market

Martin Smrt

https://orcid.org/0009-0002-2654-3591

Anna Hodinova

https://orcid.org/0009-0001-1983-1619

Robert Kuchar

https://orcid.org/0009-0001-2787-4344

DOI: https://doi.org/10.23762/FSO_VOL13_NO1_1

Abstract

The COVID-19 pandemic has profoundly impacted various sectors, including the global video game market. This study investigates how the pandemic influenced the stock prices of leading video game companies, such as Electronic Arts, Ubisoft, Square Enix, Nintendo, Sony, and Activision Blizzard. The purpose of this research is to understand the relationship between the surge in COVID-19 cases and the stock performance within this industry, providing insights into the sector's resilience and adaptability during unprecedented times. Using a Vector Autoregression (VAR) model, we analysed weekly stock prices and the number of new COVID-19 cases from January 2020 to August 2023. Our methodology included determining the optimal number of lags for the VAR model, verifying data stationarity through the Augmented Dickey-Fuller test, and interpreting impulse response functions to gauge the impact of new COVID-19 cases on stock prices. The main findings reveal that Western companies, such as Activision Blizzard and Electronic Arts, showed more positive responses to changes in COVID-19 case numbers compared to their Eastern counterparts, like Sony and Square Enix. These results underscore the differing impacts based on geographical and market presence factors. Theoretically, this research contributes to the understanding of market dynamics and investor behaviour in the face of global crises. Practically, the findings highlight the video game industry's potential as a resilient sector during economic downturns, offering valuable insights for investors and policymakers.

Keywords:

video game industry, stock market analysis, crisis response, VAR model, economic resilience, investor behaviour, pandemic impact.

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Smrt, M., Hodinova, A., & Kuchar, R. (2025). Impact of COVID-19 on Stock Prices in the Global Video Game Market. Forum Scientiae Oeconomia, 13(1), 8–20. https://doi.org/10.23762/FSO_VOL13_NO1_1

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Martin Smrt

27629@mail.vstecb.cz
https://orcid.org/0009-0002-2654-3591

Affiliation:

Institute of Technology and Business in Czech Budweis, School of Expertness and Valuation, Finance + Accounting Group, Czech Budweis, 370 01,

Anna Hodinova

26674@mail.vstecb.cz
https://orcid.org/0009-0001-1983-1619

Affiliation:

Institute of Technology and Business in Czech Budweis, School of Expertness and Valuation, Finance + Accounting Group, Czech Budweis, 370 01,

Robert Kuchar

kuchar@mail.vstecb.cz
https://orcid.org/0009-0001-2787-4344

Affiliation:

Institute of Technology and Business in Czech Budweis, School of Expertness and Valuation, Finance + Accounting Group, Czech Budweis, 370 01,