The Video Game Industry: Insights for Investors
The Video Game Industry: Insights for Investors
Newzoo indicates that 79% of the total online population engages with video games. However, even those who don’t play can benefit from investment opportunities in this thriving industry.
This infographic, sponsored by Roundhill Investments, delves into the growth of the gaming industry and related financial opportunities.
Video Gamers, by Region
Video gaming platforms were home to 3.2 billion gamers around the world in 2022, and the number is projected to reach 3.5 billion by 2025, according to Newzoo.
However, this growth varies across regions.
| Region | Number of gamers (2022) | Year-on-year growth (2021-2022) |
|---|---|---|
| Asia-Pacific | 1746M | 4.2% |
| Middle East & Africa | 488M | 8.2% |
| Europe | 430M | 3.4% |
| Latin America | 315M | 4.8% |
| North America | 219M | 2.6% |
Also, due to ease of access and low barriers to entry, mobile gaming is the most popular segment, generating almost three-quarters of the revenue.
Video Gaming Industry, by Revenue
The inherent resilience of the gaming industry was evident during the COVID-19 recession.
During that period, the launch of many eagerly awaited games experienced delays, and many of those are now being released in 2023 and 2024.
Consequently, these years are poised to be the industry’s best yet. According to PwC, it is projected to generate $257B in 2023, and at a CAGR of 8.4%, it will cross $320B by 2026.
Exploring Investment Opportunities
In the video gaming industry’s dynamic landscape, investors can gain from investing in the industry’s major players. Here are some prominent ones to be aware of across certain gaming sectors.
- Gaming software companies: Electronic Arts, Ubisoft, and Take-Two Interactive.
- Integrated gaming hardware & software companies: Nintendo and CD Projekt.
- Mobile gaming companies: Kakao Games, NetMarble, and Rovio.
- Gaming infrastructure & platform companies: Unity, Roblox, and AppLovin.
Roundhill Investment’s video gaming ETF makes it easy for investors to get exposure to many leading video game companies and AAA game publishers worldwide, including the ones listed above.
Overall, given the expansive and varied demographic, coupled with minimal entry barriers and swift innovation, the video games market is considered hold a lot of potential for investors over the coming years.
Invest in the video games ETF: $NERD today.
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