After a tremendous year for the games industry as a whole, opportunities for games developers on the stock market are steadily growing. This is also attracting investors. How are these companies faring at the moment and how are investments developing?
Revenue growth in video games and online gaming
One of the winners of the Corona pandemic is clearly the gaming industry and video games. After having already had good business throughout the year, they started the Christmas business brilliantly. Experts believe that the Christmas season has never been better than in 2020 and there are several signs that game developers and licensed casinos as well as the best online betting
companies remain optimistic about the future. For example, the latest generations of gaming consoles have arrived on the market, the PlayStation 5 and the Microsoft Xbox series X
Current investment forecasts for the stock market
The strong sales are impressive and have made people curious about what is happening to game developers on the stock market. Prior to the pandemic, people spent their money on holidays and trips as well as events and concerts; during the embargo, opportunities for personal growth were limited. As a result, many people are pulling out their old game consoles again and sitting in front of their computers. According to Dutch market research company Newzoo, experts predict that video game sales for PCs, tablets, consoles and smartphones will reach $16 billion this year alone. In total, sales are expected to reach around $175 billion.
It is important to note, however, that those who are putting money into game developers and the gaming industry in the early stages should bear in mind that the boom may not last in this way. At the latest, when the pandemic is over, people will struggle to come out and interest in video games will decline. This makes it difficult to make long-term predictions. Most experts believe that the total video game market will grow to almost $218 billion by 2023.
Positive growth through 2023
The increasing effects of the pandemic and the positive growth alone could have a lasting impact on monetary investments. The upward trend has therefore been accelerated by Corona. Given the development from 2015 to 2019, the market has grown by 57%, so that 2.7 billion play a global people. By 2023, almost 3 billion people are expected to be gambling regularly.
Increasingly, so-called in-game purchases are gaining weight and importance. This means that users can play for free and then buy progress in the game. If players want to progress faster or gain an edge, they have to spend extra money that can improve their performance. For companies and game developers this has huge advantages as it means that the game generates recurring revenue.
The eSports ETF and the gaming phenomenon
Gaming on consoles as well as on smartphones and PCs is no longer a phenomenon for young people. More and more young people have brought gaming into adulthood. As a result, well-known games are connecting entire generations. In addition, the eSports industry is attracting more attention. At the same time, tournaments at major gaming shows have the same number of spectators as some football matches and sporting events. As a result, there are sponsored teams with wealthy investors investing money in the sector and already see the potential that will develop.
Based on the stock market, there is an exciting investment that will continue to change positively in the coming years. It remains to be seen how far the current boom and strong upward trend will develop. The video games and eSports ETFs
in particular are of growing interest in light of the current developments in the stock market. Game developers such as Electronic Arts, Tattoo or Nintendo are widely positioned, as are digital groups such as Sea and Tencent.