Different ways to invest in the gaming industry include investing in gaming stocks, gaming-related stocks, gaming funds, and gaming ETFs. Each investment option has its advantages and disadvantages, and it is important to consider each option before making an investment decision.
Investing in Gaming Stocks:
The main way to invest in the gaming industry is by investing in gaming stocks. This involves buying shares of gaming companies that are publicly traded on stock exchanges. This investment option allows you to benefit from the growth of the gaming industry without having to invest directly in a gaming company.
Some of the top gaming stocks include Activision Blizzard, Electronic Arts, Take-Two Interactive, and Ubisoft. When investing in gaming stocks, it is important to consider the company’s financial performance, growth prospects, and competition.
Investing in Stocks involved in gaming companies:
We do understand that some companies are not publicly listed. Grand Theft Auto and Red Dead Redemption are two of the most renowned game franchises globally, which are developed by Rockstar Games, a private company. There is technically no way for you to have a share in Rockstar unless you have enough cash to become a private investor — but what you can do is you can invest in Take-Two Interactive, which owns Rockstar.
Do note, however, that if you choose to go through the ‘backdoors’ like this, your exposure is not just towards Rockstar, but all other companies and projects that Take-Two Interactive is involved with. You’ll have to make sure that the impact that Rockstar will bring is big enough to carry Take-Two Interactive for you to feel like you have invested in Rockstar.
In the same way, you can also invest in companies that garner revenues from the gaming industries, despite not being directly involved in the industry, such as those that provide software or hardware required to complete a game, conduct tournaments, or even manufacture merchandise.
Investing in Venture Capital & Private Investment Firms
If you have a little bit more money in your pocket, you can try investing via venture capital firms and private investment firms — but mind you, many of these options are super expensive, at least for plebians such as myself.
Many such firms would require a minimum investment of around $500,000. So yeah, we just put it here for you to know, but if I’m being honest, I myself can’t afford it. Don’t be discouraged, there are plenty of options below!
Investing in Gaming Funds or ETFs:
Gaming funds are mutual funds or exchange-traded funds (ETFs) that invest in gaming companies. These funds provide investors with a diversified portfolio of gaming companies, reducing the risk associated with investing in a single gaming company.
There are also private equity funds, which provide you access to gaming companies that are not publicly traded.
Gaming ETFs are similar to gaming funds, but they are traded on stock exchanges like individual stocks. These ETFs invest in gaming companies and provide investors with a diversified portfolio of gaming companies.
Some of the top gaming ETFs include the VanEck Vectors Video Gaming and eSports ETF, the Global X Video Games & Esports ETF, and the Wedbush ETFMG Video Game Tech ETF.