Have you heard..
The news that the video gaming industry has become more profitable than the movie and music industry?
Most of us grew up playing video games to while the time and to catch-up with the latest in graphic technology.
Some of us love the story arch of video games thus we end up spending hours playing video games.
Who would have thought that playing video games would become a profitable activity and form the backbone of a billion-dollar industry?
People who play video games has a new reason for playing: PROFIT
With the COVID-19 pandemic forcing more people to remain in their homes, the video game industry is further injected with large numbers of players and—drumroll—audiences.
Yes, that is because video gaming has also become a form of spectator sport.
To say it simply…
The video game market has become a giant player in entertainment and even in sports.
From playing video games at the comforts of your home, video gaming has evolved into an eSports.
Commercial leagues featuring tournaments of gamers playing a variety of video games has brought in a billion-dollar industry with sponsorships, network audience shares, gaming livestreams profits complete with celebrities and big-name brand ambassadors.
How big is the gaming industry today?
The video game market has grown to more than $150 billion industry in the last several years—at an 17.5% compound annual growth rate (CAGR).
From 100 million video game players in 1995, the number of gamers today has ballooned to two billion people—almost a third of the world’s population!
Wait, there’s more…
In 2021, the number of gamers is expected to reach almost three billion generating a revenue of $180 Billion. 59% of this will come from mobile games, 19% from PC and 22% from video game consoles.
Video Gaming as Spectator Sports
Because video gaming has become a spectator sports attracting a large audience, it spawned a new term called “ESPORTS”.
According to latest figures:
There are 450 million people who love watching other people play video games—with almost a half of this number do not play the video games they are watching.
This gives the ESPORTS industry a two-pronged audience: the gamers themselves and their audience.
Not surprisingly enough…
The availability of video games to be played via portable gaming consoles has made it possible for the industry to reach more consumers.
Mobile games make up a large percentage of gamers worldwide.
And there’s more…
Better graphic technology and storylines add up to the interactive aspect of new video games.
Picture this: As a gamer, you can team up with another gamer from Slovenia through online network connection and play as a team or participate in a team tournament.
Not only this…
Aside from better technology, consumers are also gifted with cheaper hardware such as GPUs and processors and gaming consoles—thanks to a healthy competition among video game brands—making it possible for millions of gamers worldwide to hook up on their own gaming machines to play their favorite RPG, first-person shooter, strategy and heist games.
How to Invest in the Video Gaming Industry?
Following the trail of the video gaming industry is like following the scent of money.
So, to capitalize on the hottest industry today, here are ways where you can invest:
- Video games developers such as: Capcom (Resident Evil, Street Fighter, Monster Hunter) ( ), Tencent Holdings (League of Legend) ( ), Activision Blizzard (Call of Duty, World of Warcraft, Candy Crush) ( ), Take-Two Interactive (Grand Theft Auto) ( ) and Electronic Arts (NBA Live, Madden NFL, FIDA, The Sims) ( ) just to name a few.
- Esports Teams. Examples of popular Esports teams include Ajax (AJAX NA), Borussia Dortmund (BVB GR), Comcast (CMCSA), Madison Square Garden (MSG), Mobile TeleSystems (MTSS RX) and AS Roma (ASR IM) just to cite a few. An example of this is the leading Esports infrastructure in the world today. Twitch is the foremost live streaming platform for video gamers and their audience. What is YouTube to video content creators is what Twitch is to gamers.
Now get this…
Exhibiting a huge growth, the last decade and an even bigger room to grow in the future, investing in the video gaming industry is the MOST LOGICAL thing to do.
To check out what the video gaming industry has in store for investors, eToro has a feature called “InTheGame CopyPortfolio”, which you can use to craft your own strategy in investing at the high-yielding gaming stocks tradable on the eToro trading platform.
This include stocks of: video game developers, media giants, mobile game developers, chipmakers, gaming infrastructures and many more.
eToro is a multi-asset platform which offers CFD and non CFD products.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.