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June 04, 2020

Video Gaming: Lucrative Investment Opportunity for Investors



Video gaming was once considered a pastime for antisocial teenagers. In recent years, that narrative has changed while the sector has grown significantly. The stay-at-home order triggered by the current health situation of the world will expectedly have a profound impact on the number of people that engage in online games. The stats support this.





In the US alone, Verizon (News - Alert), a telecommunications firm, reported a 75% growth every week. TENCENT, one of the heavyweights in the video game industry also reported an increasing playing time and a growing user base. Spending on online games has also increased significantly since the lockdown order.

Esport’s success supports the rise in online gaming. Teams come together on this platform to engage in video games competitions and tournaments, proof of the growing interest in video games across the globe. Worldwide streaming may come in handy to fill in for the suspended gaming activities across the globe. Fans of CS:GO can find and place bets on the professional CS:GO matches at sites like csgobook.com/ where you’ll find the latest markets and even tips offered in guides and real players.

However, the work-from-home policy may be counterractive in the gaming sector. Game development may be negatively affected, leading to the possibility of delay in launching future games.

Between 2008 and 2009, mobile game players reduced their spending on games. Nevertheless, they still spend a huge amount of money in comparison with other entertainment options. For instance, consumers spent around $31 per hour on converts, according to Activision (News - Alert). Sporting events and theatrical movies cost $17 and $5.70 per hour respectively. However, it costs just consumers just $0.46 per hour for purchased video games.

A report by GlobalData predicted that by 2025, the video games industry will hit $300 billion. Investors do well to follow the leaders in the industry such as UBISOFT and TENCENT to leverage the expected growth in the mobile gaming market.

·         UBISOFT

UBISOFT is the brain behind some popular gaming brands such as Prince of Persia, Assassin’s Creed, and Just Dance. In 2018/2019, the company’s revenues stood at €2.3bn, a 17.1% increase over their 2017/2018 revenues.

In 2019, the company put off the launch of three of its major games until 2020. It is expected that the delay will have a positive impact on the launching of the games this year.

·         TENCENT

TENCENT is a leading name in the video gaming industry.  The Chinese multinational company has Call of Duty, Fortnite, and League of Legends under its belt. In the mobile gaming sector, the company’s contributions include esports, game development, and social communities dedicated to gaming.

In the video game industry, mobile games are taking the lead. Their success can be attributed to a variety of factors that include easy distribution of mobile games, and the growing number of broadband users, factors that make mobile games readily available for mobile game players. Thanks to mobile gaming, the video gaming industry is gradually going digital.

New mobile gaming markets are opening up across the globe, an indication of the potential for expansion in the industry. With the lockdown order across the globe confining billions of people to their homes, more people will turn to video gaming as it continues to compete with Internet browsing and TV shows.


 

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