Let the games begin: How to invest in the booming gaming industry

The gaming industry could be worth $314B by 2026. We’ve gathered some of the most interesting names in this booming sector

Although many believe they are relatively new, video games have been around since the early days of computers. In 1958, a physicist called William Higinbotham created what is considered by many to be the first video game.

Video games have come a long way since Higinbotham’s Tennis for Two. The global gaming industry was valued at $173.7 billion in 2020, and is projected to reach a value of $314.4 billion by 20261. COVID-19 and its worldwide lockdowns gave the industry a major boost, with both Microsoft and Sony reporting record growth numbers for their gaming products. On eToro, you can invest in the gaming industry, and why not start by checking out these top stocks?

Take-Two Interactive

Founded in 1993, Take-Two Interactive is perhaps best known for its flagship game, Grand Theft Auto, which has sold over 345 million units worldwide and is one of the most profitable franchises in the history of gaming. The company is engaged in the development, publishing, and marketing of video gaming entertainment products, mostly designed for console gaming systems. Other games by Take-Two include Red Dead Redemption and the NBA 2K basketball series, and the company is currently valued at $20.6 billion.

Zynga

The California-based video game company got its start on Facebook, where its browser games, like FarmVille and CityVille, were big hits. With the rise in popularity of mobile games, Zynga successfully pivoted to focus on these games, and it is currently valued at $7.1 billion. Over the years, Zynga acquired different development studios, and it is now the owner of popular franchises such as Toon Blast, CSR Racing, and Empires & Puzzles, alongside its earlier games, like Words With Friends. Earlier this month, Take-Two Interactive announced its plans to acquire Zynga for $12.7 billion in cash and stock.

Activision Blizzard

Known for franchises such as World of Warcraft, Call of Duty and Quake, Activision Blizzard has been operating in the gaming field since 1979, when Activision was founded. After merging with Blizzard Entertainment, Activision Blizzard was born. Later on, the company acquired King, developer of the highly popular franchise Candy Crush. The company’s market cap is valued at $51.9 billion, and it also maintains Battle.net, an online platform for digital content. On January 18th, 2022, it was announced that Microsoft signed a deal to acquire Activision Blizzard for $68.7 billion.

Roblox Corp.

Roblox is an online game creation system developed by Roblox Corporation, The platform lets users create games, and play games created by other users. Founded in 2004 and currently valued at $57.1 billion, the firm operates globally, with Roblox games played all over the world. Recently, it was announced that Paris Hilton will be DJing at her virtual Roblox island on New Year’s Eve, and she’s not the first one — Rapper Lil’ Nas X performed for a Roblox last year.

The gaming industry is expanding and is expected to grow at a compound annual growth rate (CAGR) of 9.64% between 2021 and 20261. You can be a part of this rapidly growing industry by joining eToro and investing in gaming stocks. For investors interested in thematic exposure to the gaming industry, eToro has created the InTheGame Smart Portfolio

Sources:

  1. https://www.mordorintelligence.com/industry-reports/global-gaming-market
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