Gaming Survey Shows 'Solid Trends' As PlayStation 5, Xbox Series X Prepare For Launch

Video games are on the rise thanks in part to stay-at-home procedures during the coronavirus (COVID-19) outbreak. PC gaming is up, with Etailers reporting "frequent recent stocks outs of NVDA's most popular Turing cards."

According to analysts at BofA Securities, only "8% of PC gamers own a GPU on par with performance of upcoming Sony/Microsoft game consoles, which will become the new bar for mainstream performance."

The approaching releases of Sony Interactive Entertainment's SNE PlayStation 5 and Microsoft Corporation's MSFT Xbox Series X could ignite a "major upgrade cycle" for PC gaming-based companies like Nvidia NVDA and Advanced Micro Devices AMD.

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Demand > Supply: Demand will inevitably grow as mainstream consoles begin releasing hardware updates. BofA analysts believe "Turing adoption could be increasing as a result of the rising popularity of gaming as many are confined to their homes."

Many places like Amazon AMZN are seeing Nvidia products such as the GTX 1650 Turing card sell out.

"In our estimate, just 8.4% of NVDA steam users are using graphics cards with specs on par with the forthcoming Xbox Series X and PS5 game consoles which should become the baseline for AAA PC game performance/development upon their launch in the 2H of this year," analyst Vivek Arya wrote in a note.

"We define this threshold as equal to or above NVDA's RTX 2060 Super Turing card. This implies 90%+ of the installed base could become strongly motivated to upgrade to higher ASP current-gen Turing products, and potentially next-gen 7nm Ampere products, once new game consoles launch later this year."