Top Reasons Investors are Buying Video Game Stocks

November 9, 2020, By fierce,

The world of gaming is becoming more popular by the day, giving significant demand.

The sheer size of the gaming community is a substantial revenue driver.  Of the total population of 7.7 billion people in the world, according to Financial Post, it’s estimated that a third of the population are gamers.  Plus, up to 43% of all males between the ages of 18 and 34 are gaming.

Revenue from those millions of people has already eclipsed box office revenue, generating $138 billion revenues in 2018, and $151.55 billion just in 2019.  By 2025, that figure could be up to $257 billion.

Microsoft is just as bullish.

“Gaming is one of the largest and fastest-growing forms of entertainment in the world. We expect there to be more than $200 billion of revenue in this industry in 2021,” Kyle Vikstrom, Microsoft’s director of investor relations said, as quoted by CNN.

Analysts at Deutsche Bank added, 2020 saw a “permanent structural increase in time and money spent on video games, “as well as a shift from physical to digital sales,” as noted by Business Insider.

Leave a Reply

Your email address will not be published.