Video games have gone mainstream
Everyone from toddlers to grandparents are now playing their favorite games on consoles, PCs and mobile devices. What started off as a niche market geared towards teens and young adults has blossomed into a bohemoth. With over 2.5 billion gamers worldwide, some estimates put the current value of the industry at over $173 billion.
But… with an industry expanding at a compound annual growth rate of 10.5-14%, the video game market could be worth nearly a half-trillion dollars by just 2030.
While most headline grabbing investments – like Microsoft’s recent acquisition of Activision for $68.7 billion – have come from M&A deals,, more retail investors are engaged in the market than ever before.
Here’s seven reasons why:
1: Growth: like stated earlier, the video game industry is growing at a very strong 10.5-14% CAGR. The market could potentially triple in the next few years.
2: Diversified Industry Revenue: The global video game industry has taken the traditional growth model and turned it upside down. Many games are free to play, and generate reveunes when gamers look to upgrade. Fortnite, an incredibly popular game that has generated roughly $17 billion in revenue is… free to play.
3: Variety: In 2020, there were an estimated 1.18 million games to choose from. There are perhaps hundreds of games for every demographic, meaning developers have tapped into revenue streams from all ages.
4: Mobile Devices Go Everywhere: With almost everyone having a smart phone in their pockets, mobile gaming has become huge. Gamers can engage in their favorite games almost anywhere at any time. Revenue from mobile games alone, in the US, has reached over $10 billion annually.
5: Digital Distribution: Gone are the days when gamers would wait in line at Toys R Us to get the latest cartridge release. Now, games are released, distributed and played digitally. By removing the “hard” product of disks or cartridges, the industry has trimmed costs while giving greater access to the masses.
6: eSports: There are over 220 million “occasional” fans of eSports, with an additional 215 million “diehards”. The total eSports audience has an estimated size of nearly 450 million. That’s likely double the amount of fans America’s top sport, the NFL, enjoys. By 2024, the eSports market will hit revenues of over $1 billion.
7: Startups, Startups… Startups!: While the overall gaming industry is growing at a rapid pace, and dozens of big gaming companies enjoy market caps in the hundreds-of-billions, smaller companies and startups may be returning investors big, solid gains. With so much M&A activity occurring in the industry, its these smaller companies and startups that could be among the biggest winners. Of course, that means their investors could be too.
With such incredible growth happening right now, and M&A activity breaking new records, it makes sense why more folks are investing in gaming now, more than ever before. In a word, it’s all about Opportunity!
Read more about why more people are investing, HERE
Or discover a startup with patented game-tech, HERE
Source: https://www.gamespace.com/all-articles/news/why-are-more-people-investing-in-the-gaming-industry/