Despite the conditions created by the COVID pandemic, the video game industry managed to increase its revenue by 20% in 2020. The industry currently stands at around $180 billion and is expected to grow to the ballpark of $218 billion within a couple of years. Considering this level of unprecedented growth, there is no better time to invest in video game related stocks than right now.
Here I have provided a list of video game stocks, in no particular order, that I consider to be low-risk and beneficial in the long-term. However, I am not an expert, and urge any reader to research these stocks before selling their house to invest in them.
Tencent Holdings (TCEHY)
In terms of revenue, Tencent Holdings is the biggest video game company in the world. The Chinese multimedia conglomerate has a considerable amount of holdings in popular video game publishers such as Epic Games, Activision Blizzard, and Ubisoft. Internally developed games by Tencent Holdings include the ever-popular League of Legends, which continues to be a dominating force in the esports industry.
Outside of video games, Tencent contains diverse assets in content and technology. Factions of the multinational company include Tencent Pictures, Tencent Music, Tencent Maps, and Tencent Weibo. Tencent has also proven to be very successful in developing phone apps. WeChat is a multi-purpose messaging system that is one of the biggest communication apps on the planet. In 2018, WeChat was considered to be the biggest mobile app with well over a billion users a month.
Given the diverse amount of massively successful holdings, Tencent seems like a no brainer for investment.
Take-Two Interactive (TTWO)
Take-Two Interactive continues to be a successful publishing company thanks to its central gaming franchises. The company’s largest properties come from Rockstar Games with Grand Theft Auto and Red Dead Redemption. Since becoming one of the fastest-selling games during its debut in 2013, GTA 5 has sold approximately 120 million copies worldwide. With GTA 6 on its way to being announced, the sales numbers for GTA 5 have the chances of being dwarfed.
Investors should also feel secure with the titles under the 2K banner. The NBA 2K series continues to reign at the top of the sports-game field with the amount of players and the addition of the NBA 2K League esports events. 2K also has developed a recent partnership with the NFL to create football video games in competition with EA Sports. Outside of the sports world, Bioshock is also due for a new installment in the franchise.
In the past two decades, Take-Two Interactive has grown over 1,000% and is continuing this trend through the next two decades, making it a great addition for your investment portfolio.
Activision Blizzard (ATVI)
Since the merging of both game publishing giants in 2008, Activision Blizzard has been an incredibly profitable company with the help of their massive online multiplayer games. Call of Duty constantly performs well with an impressive number of players for each new installment. World of Warcraft has been a staple of PC gaming since 2004 with the help of its consistent release of successful expansions.
When it comes to streaming numbers, Activision Blizzard properties are a dominating force. World of Warcraft, Call of Duty: Warzone, and Hearthstone are some of the most-watched games in the history of Twitch. Another important property from the company is the competitive multiplayer game Overwatch, which is expected to release its sequel by late 2021. In terms of mobile gaming, Activision Blizzard has a huge presence with Candy Crush Saga, Call of Duty: Mobile, and Diablo: Immortal.
Activision Blizzard doesn’t release new games very frequently, but when they do, it makes waves in the industry. So with the incoming releases of Overwatch 2, more WoW expansions, more Call of Duty sequels, and possibly a Diablo 4, investing in Activision Blizzard doesn’t seem like much of a risk at all.
Corsair Gaming (CRSR)
Corsair Gaming provides some of the best bang-for-your-buck PC gaming appliances. They continue to be a popular brand for supplying gaming essentials such as headsets, keyboards, computer mouses, and internal PC components. Corsair is also planning to enlarge product offerings to include top-of-the-line streaming gear, which should capture the attention of professional esports players.
Corsair went public in fall 2020 and surged 170% on its first day. Their success derives from the need for people to upgrade their personal gaming setups. The demand for upgrades will exist parallel to the new graphics cards announced by AMD and NVIDIA.
Corsair provides quality gear that is dependable and guarantees an optimal gaming experience. With the accelerating rate of innovation in the field of gaming and technology, Corsair is an obvious investment choice.
Glu Mobile (GLUU)
It is entirely possible that Glu Mobile could be the best video game stock to invest in. The mobile game publisher was able to grow by 32% for the year 2020 because of the increased player engagement resulting from the pandemic and also from the expanding impression mobile gaming is making on the industry. The core titles from the publisher are also maintaining solid performance numbers. These include TAP Sports Baseball, Kim Kardashian: Hollywood, Design Home, Covet Fashion, and Disney Sorcerer’s Arena.
Glu Mobile is also preparing to release its newest title, Deer Hunter World, at some point later in 2021. They’ve also announced that another game is in the works from CrowdSar, the developers of Design Home and Covet Fashion. Speaking of Design Home, Glu Mobile has announced plans to launch an e-commerce store within the game that will allow players to purchase items in game and apply them to their real-life homes. Things would really ramp up for Glu Mobile once people are able to buy actual furniture through their mobile games.
Even if you’re not a believer in mobile games or have doubts as to if Glu Mobile can fulfill their promises, their shares are fairly cheap and have the potential to surge in the coming years. Even if it would take some time for growth, Glu Mobile as an investment shows incredible potential for growth in the long-term.
I once again urge you to research these companies before making any financial decisions. Hopefully the provided information has helped you in seeing potential in companies you may or may not have already heard of. When it comes to the entertainment industry, video game stocks are going to be the most exciting to watch now and into the future.