video game company stocks: A List of Gaming Company Stocks by Market Cap
Video game companies benefited in the early stages of the COVID-19 pandemic as many consumers sheltered at home and turned to at-home entertainment. A June 2020 report by analytics firm Nielsen suggested that four out of five global consumers had played or watched video game content by that stage of the pandemic. The report goes on to further outline that this growth will be driven by the uptick in internet and cellular connections and government initiatives for projects such as smart cities. The advent and growth of consumer technology and gadgets have revolutionized entertainment. Before the computer or gaming consoles became popular or advanced, entertainment means were limited primarily to physical or contact sports.
The firm offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. Unlike a full-priced AAA title, there is no entry cost to try out Roblox or the vast majority of user-developed games. Thus, to drive booking growth and keep the Roblox model churning along, the new user must purchase and spend Robux, the platform’s tender. As restrictions lifted, however, video game companies could no longer count on a captive user base at home. In addition, supply chain issues in recent months have depressed video game stocks.
Perhaps most important for Microsoft, the Activision acquisition gives it a much stronger hand as tech companies race to develop and dominate the metaverse. Video game stocks, represented by the VanEck Video Gaming and eSports ETF , has underperformed the broader market over the past year. ESPO’s total return was -32.4% over the past 12 months versus the Russell 1000’s total return of -12.5%. Microsoft owns Minecraft developer Mojang, Elder Scrolls developer Bethesda, and it agreed to acquire video game juggernaut Activision Blizzard in a blockbuster $70 billion deal.
The global popularity of video games will likely continue to grow in the coming decades, providing leading game publishers with many opportunities to reach new players and expand sales in both developed and emerging markets. “Activision Blizzard is one of the world’s largest third-party video game publishers and owns some of the largest and well-known video game franchises, including Call of Duty and World of Warcraft. We believe the firm is well placed to consolidate its leading position by developing compelling new versions of its existing franchises and by introducing new experiences, such as Overwatch. We expect Activision to continue to benefit from ongoing console demand, the ongoing revitalization of PC gaming, and the growth in the mobile market via King. “Roblox operates an online video game platform that lets gamers create, develop, and monetize games for other players.
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Now, advanced gaming consoles, personal computers, and gadgets offer consumers new and immersive entertainment mediums. The Japanese company launched its Nintendo Entertainment System in the 1980s, following it up with a series of popular systems. The latest console from Nintendo is the Switch, which has sold more than 100 million units worldwide since its launch. Capcom pays a dividend and, through its dividend payments, aims to return roughly 30% of its annual profits to shareholders. Earnings can be erratic in the video game industry, but Capcom’s management clearly prioritizes returning cash to shareholders.
Undervalued Gaming Stocks’ ‘Tier List’
Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated. Video game developer and publisher Capcom is thriving, thanks to successful releases that have strengthened its key franchises and produced impressive sales and earnings growth. In addition to its Resident Evil and Monster Hunter franchises, the company’s properties include Mega Man, Devil May Cry, and Street Fighter. Gaming industry ETFs invest in companies that generate revenue from the casino sector, video game industry or other forms of entertainment.
The video game industry is involved in the development, marketing, and sale of video game hardware and software. Video game industry sales generally performed well early in the COVID-19 pandemic as business shutdowns and social-distancing measures limited peoples’ entertainment options. Because consumers can play video games in the home, they have become a popular option. One of the industry’s challenges retaining newly minted gamers as employees return to work at offices amid the reopening of the the economy after the COVID-19 pandemic. Therefore, ranking companies by only one growth metric is susceptible to the accounting anomalies of that quarter that may make one or the other figure unrepresentative of the business in general.
The firm owns one of the most well-known massively multiplayer franchises in China—Fantasy Westward Journey. Over the past decade, NetEase has capitalized on the industry shift toward mobile gaming and now focuses on developing innovative, high-quality, and long-cycle games with a mobile-first approach. Over the past years, the firm has established iconic titles such as Onmyoji, Knives Out, and Identity V. Every year, the company publishes dozens of games across almost every genre and game play. In addition, NetEase is also collaborating with firms such as Blizzard, Marvel, and Microsoft to release games based on famous global intellectual property like Diablo, Harry Potter, and Lord of the Rings. Over the foreseeable future, we expect NetEase to continue to leverage its in-house research and development team and user data to develop next-generation games.
Here are the top three video game stocks with the best value, the fastest growth, and the best performance. By the end of this year’s second quarter, 46 out of the 785 hedge funds studied by Insider Monkey had invested in the company. The staying power of Nintendo, despite all of the changes in the gaming industry over the past few decades, makes it one of the best video game stocks to own.
Provide specific products and services to you, such as portfolio management or data aggregation. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. As of Feb. 2, 2023, the Morningstar Global Electronic Gaming and Multimedia Index lost 10.8% for the trailing 12-month period, while the broader stock market fell 8.2%, as measured by the Morningstar US Market Index. During 2022, the gaming index fell 16.1%, outperforming the 20.7% decline in the overall U.S. stock market. These include white papers, government data, original reporting, and interviews with industry experts.
For instance, a research report from Markets Research Future estimates that the gaming market will grow at a strong compounded annual growth rate of 13% to be worth a staggering $547 billion by the end of 2030. Another report from KBV Research estimates that the market will grow at a similar CAGR of 12% to sit at $413 billion by 2028 end. The video game industry is a large, fast-growing sector that still has significant long-term expansion potential.
The root cause is supply chain bottlenecks that prevented video game companies from producing enough game console products to meet demand, including Sony’s PlayStation 5 console. The companies were then ranked according to Insider Monkey’s survey of 895 hedge funds for the second quarter of this year. Finally, gaming companies themselves are evolving with time, as the traditional brick and mortar model that led to physical game disk sales is being replaced by an online model. Video game companies are competing to provide the most popular form of entertainment. Get the most updated comparison by key indicators and discover each stock’s price target as well as recommendations by top Wall Street experts.
Take-Two Interactive’s valuation has grown rapidly due to stellar performances by its core franchises. Grand Theft Auto is the company’s biggest and most important property, and, as a series, one of the most profitable in all of gaming entertainment. Take-Two’s Red Dead Redemption series is being well-received, and its NBA 2K basketball series is a leader in the sports game category. The company also owns a variety of smaller series and other development initiatives that help to drive growth. We sell different types of products and services to both investment professionals and individual investors.
There are many reasons to like this long-standing business, which has been a video game industry stalwart for decades and created some of the medium’s most memorable gaming experiences. Most recently, Capcom’s Resident Evil Village topped 5 million units sold since its May 2021 launch. Maintaining independence and editorial freedom is essential to our mission of empowering investor success.
Best video game stocks in 2023
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Activision Blizzard – Strong Buy, based on 13 analyst ratings, 13 Buy, 0 Hold, and 0 Sell. DOJ files proposed consent decree to address Activision esports concerns The U.S. Justice Department filed a civil antitrust lawsuit against Activision Blizzard for imposing rules that limited competition… Electronic Arts Chairman Wilson sells over $1.2M in shares Chairman of Electronic Arts Andrew Wilson disclosed in a regulatory filing that he had sold 10,000 shares of… Market penetration is a measure of how much a product is being used by customers compared to the total estimated market for that product.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. He’s worked on his investing website dealing with topics such as the stock market and financial advice for beginners. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Nintendo is notable for making many of the most popular games on its own systems.
These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Of the 51 video game stocks in this index, only six are covered by Morningstar analysts, and all of these were undervalued as of Feb. 2, 2023. These are the video game stocks with the lowest 12-month trailingprice-to-earnings (P/E)ratio.
Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy. The pioneering game publisher owns popular licensed franchises, including Madden NFL and FIFA, in addition to a stable of high-profile original assets, including The Sims, Apex Legends, and Battlefield. Electronic Arts’ June 2021 acquisition of Glu Mobile signals that the company is now aggressively expanding into mobile games. Activision is an early leader in the esports space, and it has a major presence in mobile games.
Activision Blizzard owns some iconic franchises, including Call of Duty, World of Warcraft, and Candy Crush. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.
