The stocks of gaming companies, including pure-play games, video games, mobile games, and competitive games, are called gaming stocks. The gaming industry has evolved by leaps and bounds over the last decade. The evolution of gaming companies and gaming stocks has been supported by advancements in technology and high-speed internet.
The use of technology is growing every day, and gaming is no different. According to reports, the gaming industry was at about $138 billion in 2018 and holds the potential to grow to $180 billion by 2021. Therefore, gaming stocks form an attractive part of the investment portfolios of modern-day investors. The performance of gaming stocks is measured against the sector-specific MVIS Global Video Gaming & eSports Index.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| ATVI | Activision Blizzard, Inc. | $91.50 | 12.09% | 71.1B |
| AVID | Avid Technology, Inc. | $36.91 | 344.70% | 1.7B |
| BHAT | Fujian Blue Hat Interactive Entertainment Technology Ltd. | $0.73 | -47.10% | 39.0M |
| EA | Electronic Arts Inc. | $144.99 | 6.49% | 41.4B |
| GIGM | GigaMedia Limited | $2.65 | -10.47% | 29.3M |
| GLUU | Glu Mobile Inc. | #N/A | #N/A | #N/A |
| GRVY | Gravity Co., Ltd. | $99.08 | 62.45% | 688.5M |
| NCTY | The9 Limited | $8.68 | 20.56% | 102.4M |
| RNWK | RealNetworks, Inc. | $1.87 | 24.67% | 87.7M |
| SCPL | SciPlay Corporation | $15.96 | 8.50% | 2.0B |
| SE | Sea Limited | $297.67 | 160.70% | 156.1B |
| SLGG | Super League Gaming, Inc. | $4.25 | 81.62% | 98.3M |
| TTWO | Take-Two Interactive Software, Inc. | $173.29 | 8.82% | 20.0B |
| ZDGE | Zedge, Inc. | $17.76 | 1124.83% | 252.0M |
| ZNGA | Zynga Inc. | $10.45 | 7.51% | 11.4B |
| HUYA | Huya, Inc. | $13.39 | -40.14% | 3.2B |
| SNE | Sony Corp. | #N/A | #N/A | #N/A |
| GME | GameStop Corp. | $180.36 | 4397.76% | 13.0B |
| MSFT | Microsoft Corp. | $289.67 | 42.10% | 2181.7B |
| NVDA | Nvidia Corp. | $195.58 | 87.66% | 487.4B |
| NTDOY | Nintendo ADR | $68.63 | 21.25% | 7876.4B |
| TCEHY | Tencent Holdings | $66.89 | -2.11% | 5095.4B |
| TAPM | Tapinator, Inc. | $7.90 | #N/A | 4.4M |
State of the Gaming Industry
The video game industry is a multi-billion dollar industry. The industry is thriving and continuing to grow.
Video games have exploded in popularity and accessibility in recent years. For those who play video games, it’s a blast. For investors who are trying to capitalize on the industry, there are some challenges. The video game industry is a multi-billion dollar industry that continues to grow with no end in sight. As more people buy into the video game craze, the pressure mounts to meet production demands while also maintaining quality standards for the end product. Heavy reliance on third-party developers creates another concern: the uncertainty of whether or not they will be able to keep up with demand will continue to plague the industry until it can find a way to solve these issues.
As the industry grows, it will be up to the producers and developers to maintain quality standards and provide a consistent product to consumers. It’s not feasible for the video game industry to expand indefinitely without providing investors with some degree of certainty that they will be able to meet output demands while maintaining quality standards as well. The gaming industry stands to grow exponentially over the next several years, but in order for it to actually do that, developers and gaming companies must provide some measure of clarity regarding their ability to keep up with demand.
While video games and video game consoles are highly profitable, they are also very expensive to produce.
Video games are expensive and time-intensive to produce. The average cost for an individual game is $5 million dollars. There are many costs associated with making a video game, including development costs (which can be upwards of $100 million dollars), marketing budgets, distribution fees, and more. As the gaming industry continues to grow at an exponential rate, these challenges will become even more pronounced until they find some way to improve their ability to meet demand while maintaining quality standards simultaneously. To do this, gaming companies and developers need to find a way to reduce costs without sacrificing quality or quantity.
Factors to Consider Before Investing in Gaming Stocks
It is significant for investors to consider that technological development largely impacts gaming stocks. With new advancements, including virtual reality and augmented reality, the gaming companies and stocks that keep pace with technological growth are positioned well to generate high returns.
Additionally, investors must also consider the fundamental strengths of gaming stocks. That includes digital revenue and revenue growth, P/E ratio, price-to-earnings-to-growth ratio, the pace of innovation, and diversity of games.
However, gaming stocks are quite volatile and unpredictable. They rise and fall with the success or failure of new game releases. Investors must assess the internal development process of gaming companies to look for potential winners or losers. The gaming companies and stocks that stay ahead of the innovation curve are the potential winners.
Which Gaming Stocks Should I Buy?
Despite the high volatility and unpredictability, the right gaming stocks chosen at the opportune times can generate high returns for investors. We have compiled a list of the best gaming stocks for you to select from.
Gaming stocks form a part of the consumer discretionary sector. They get affected by economic changes and are cyclical in nature; however, many of the gaming stocks are undervalued presently and offer strong upside prospects.
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