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Gaming ETFs on Brink of Boon as New Playstation, Xbox Near Debut

  • Video-game index seen ripe for rebound after trading sideways
  • Global X cites last console cycle as case for industry upside
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Microsoft Targets Sony With New Xbox Series X and S

With pre-orders for Sony Corp.’s Playstation 5 and Microsoft Corp.’s Xbox X Series sold out almost everywhere before their November release, video-game ETFs are ripe for a boom.

The supply-chain constraints coupled with high demand shows “this console cycle is going to benefit mostly all of the video game companies,” according to Pedro Palandrani, an analyst at Global X Management Company LLC. HERO, an exchange-traded fund managed by Global X, has surged almost 70% this year. But the recent volatility and sideways-trading over the past month or so suggest there needs to be a new catalyst to extend the rally.