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Last Updated on May 13, 2019 by Work In My Pajamas
It’s incredible to think that gaming was once just a novelty.
Now that ‘novelty’ is the most in-demand sector in entertainment.
It’s almost as if television and film have taken a back-seat.
Suffice to say, the gaming industry is bubbling with an insane amount of growth potential. The amount of mobile users is on the rise, too.
This, combined with the progression of tech, mean consumer size is always growing. Back in 2012, the Entertainments Software Association estimated that the video game industry in the US had grown four times faster than the economy in the last three years.
As computer games sales continue to rise, so does the investment opportunity afforded by them.
In This Post:
What You Should Know About Buying Video Game Stocks
Video games have taken first place as the world’s favorite entertainment. In fact, the video game industry has brought in more revenue in the last year than film, television, and music.
The contrast between video games and other types of media is stark.
All other types of entertainment have begun to decline. Revenue from television fell by 8% last year, while gaming sales are going up by 10.7% annually.
The best growth has come from new markets also. In China, videogame sales are going up by 14% each year.
Getting into stocks for video games can be somewhat risky due to their volatility. However, those that have stuck with investments have been rewarded with amazing gains.
The growth of the industry in the last few decades is not to be sneered at.
Powered by the growing global demand and emerging technologies, it is enormous.
Even in spite of all of these elements combined, the potential for growth in the seems to still be in its infancy.
Aside from being highly competitive, there is an excellent demand for gaming. Interactive entertainment will hold more weight as time goes on.
The awards for investing in video games are balanced by the large amount of guesswork involved.
People investing in gaming stocks have minimal idea of how things can perform sales wise. In being willing to take the jump, investors have to embrace uncertainty.
Many companies have to pay for a premium to secure a deal — this usually higher than the stock’s trading price.
Acquisitions can affect stock prices, which also happens quite routinely in the marijuana stock market.
The 10 Best Video Game Stocks To Acquire
Nintendo
Nintendo’s introduction in the 1980s was a surprising entry into video game stocks.
Nintendo’s pioneering of their iconic video game format changed the perception of gaming.
They also bridged the gap between home entertainment and arcade gaming.
Nintendo‘s newest invention, the Nintendo Switch, is a unique prospect. It combines handheld and home entertainment, something not yet seen before.
Activision Blizzard
Activision Blizzard owns the title of America’s largest video game company. The reason it’s revenue eclipses other companies is that it combines three divisions.
Mobile affairs are handled by King Digital. Activision head console projects and Blizzard look after PC gaming.
Even though Activision Blizzard was going through a tumultuous time in 2018, the half-decade of outstanding performance prior and long-term forecast means they are looking promising again.
Capcom
Another iconic developer, Capcom is regaining ground. This is thanks to some great releases centered around crucial franchises.
Profits have jumped to rocket levels because of renewed priorities.
Capcom is a foreign company and carries risks related to currency and political decisions.
However, it has a lot going for in terms of investment. It has maintained an active profile for decades and has also helped to shape trends within video games, too.
Microsoft
With games like Crackdown 3 gracing their line-up, Microsoft should be in good stead to re-enter the fray.
Microsoft has even begun acquiring a variety of other game studios. Some of these include Undead Labs and Ninja Theory, the latter of which have an excellent track record.
They will also be putting into effect their own studio, giving them a fantastic potential for growth and success.
Sony
Having been founded in 1946, Sony’s breadth is unique among its competitors.
Aside from gaming, Sony has a hand in other markets such as electronics and financial services.
With a stronger focus on its game and network services, Sony has found greater success in recent times. The smash hit Spider-Man sold more than 91 million units, leading to a prediction of a 30% rise in share price.
Electronic Arts (EA)
EA’s sheer size and core franchises mean that it is always in a position of continued growth. The increasing number of E-sports fanatics will only bolster our the company’s football-centric titles.
This may help it receive a deeper integration by established sports leagues, such as the NFL and FIFA. They also have strong franchises outside of the sports genre, including the Sims and Need for Speed.
Tencent Holdings
Tencent has incredible pull, as it is the biggest video game company globally in terms of revenue. Its main strength lies within multimedia and growing cloud infrastructure.
Its holdings are located within other game companies and tie in content with the WeChat social platform. This makes it a unique investment in technology.
Take Two
Having moved from bouts of profit and loss very erratically, Take Two have found their steps and are profiting reliably.
This transformation can be attributed to the incredible success of GTA 5.
This masterpiece was developed by their Rockstar Game Division. It has been steadily generating more revenue through online play and DLC content.
Alongside this was the release of Red Dead Redemption 2, one of 2018’s best-selling games.
Ubisoft
Last year, Ubisoft’s performance was close to returning 60% profits, making it one of the best stocks to invest in.
While they are particularly volatile, Ubisoft could be an attractive investment that could go either way judging by past performance.
Sega
While Sega was unable to keep up with modern day competitors, it managed to retain life with its video game endeavors.
It also plans to tap into the nostalgia of days gone by with a throwback video game solution.
The Promise Of Video Game Stocks
It is reported that the videogame sector could expand by more than $40 billion within the next three years. Any caveats in gaming are counteracted by other developments which make it profitable overall.
For example, while revenue share for console games has declined for quite some time, the mobile gaming market has risen repeatedly.
So much so in fact that it is estimated to make up more than half of the video game revenue.
With a new slew of console titles affecting the popularity of console gaming, you can expect growth in the coming years. Video Game stocks could be some of the most fruitful stocks to have a hand in indeed.
