In 2020, as the COVID pandemic gripped the word and stay-at-home orders were in effect, many consumers were forced to ditch their gym memberships and work-out at home.
As a result, more and more consumers began buying Peloton bikes and memberships. The fitness company saw record growth, with its stock rising nearly 300% since the beginning of 2020.
But now, as lockdowns are eased, and a majority of US citizens are vaccinated, Peloton is switching gears to add new features to its fitness programs, in hopes of keeping its customers from rejoining gyms. The new features: video games.
The pandemic year of 2020 was not only a boon for Peloton, but the entire global video game industry saw record growth. Even as the pandemic has begun waning, gaming growth continues. In the first half of 2021 alone, the industry has seen more growth, more M&A activity, more private equity investments and higher valuations than at any time in history.
Peloton, seeing the writing on the wall has decided it will create its own video game.
The company just announced it will add an in-app game called LaneBreak (tentatively) that will be available for Peloton bike owners and subscribers. The game involves users changing their speed, resistance and cadence to meet goals. The game will also allow users to play customized soundtracks and compete with other “gamers.”
This move by Peloton represents the “gamification” of everything. With gaming being one of the world’s best growth opportunities, it makes complete sense why traditional companies are using games to keep and grow their user base.
Within a decade, gaming will likely become one of the globes largest, most profitable industries. Investing in gaming companies right now, especially companies with patented technology and room to grow, could be the key to long term wealth generation. Even though the industry has been around for decades, the best time for investors is now, before gaming goes mainstream.
Read more about the Peloton game HERE
Source: https://www.theverge.com/2021/7/19/22580340/peloton-lanebreak-in-app-game-launch