Portfolio diversification is a smart approach for any novice or experienced investor who wants to try and make money in the markets but lean on the side of caution. Video game stocks and shares may be one avenue to explore when diversifying, especially considering these industries are usually unaffected by economic struggle or worldly events like we have seen in 2020. But what are the other reasons to invest in these game companies?

Video Games Market

Table of Contents

Methods of Investing in Video Games Markets

Video game markets may be one of the best markets to diversify your stocks and shares portfolio. But before we give you reasons to choose video games, here are the four methods of investing in the markets:

  • Share trading (i.e. buying shares with the hope they increase in value)
  • Share baskets (i.e. groups of shares with video game companies included with the hope they increase in value)
  • CFD investments (i.e. the opportunity to make money even if video gaming markets decline)
  • Spread betting (i.e. a way to invest in video game markets while also taking up an advantageous taxation position. Often the most preferable as spread betting in the UK is tax-free)

Top Reasons to Invest in Video Game Markets

1.   eSports Growth

eSports is taking the world by storm, and it is no longer just big in Asia. Canada has the largest eSports arena in the world, and the Scandinavians are watching eSports regularly. And eSports is now gaining traction in India too. Expect big things from eSports gaming in the future.

Esports Growth

2.   Mobile Gaming Growth

Likewise, more people are mobile gaming, with 43% of people declaring themselves a mobile gamer to some degree. Better smartphones and faster internet will only increase demand.

3.   Subscription Models

Now gaming is not just about buying a game and playing or even just buying additional purchases in games and apps. Now cloud gaming has made it a subscriptions service where players tie themselves in for longer periods. Thus, it adds more stability to the profits of the gaming companies involved.

4.   Virtual Reality… Pending

We are getting closer to a breakthrough in a finalised version of Virtual Reality. It will change lots of industries, but as gaming and tech are so closely related, VR updates and roll-outs could have significant consequences. The same can be argued about other tech changes, such as the blockchain.

What Video Game Stocks Are Worth Considering?

There are quite a few video games companies that are in the markets. Zynga is one of the most famous because it is a long-standing game development company in California, and also the name behind social media games like Farmville on Facebook. Even in the USA is Electronic Arts, a name that anyone who plays video games will recognise, especially if you play sports games like FIFA or NFL Madden. The company have even launched a new eSports broadcast centre. Chinese companies worth investigating include IGG, Bilibi and Huya Live.