How to Invest in the Video Game Industry

As of 2024, the video gaming industry is a $217 billion-per-year enterprise that is growing exponentially due to technological advancement and the increasing accessibility to electronic devices across the globe. There are estimations that the gaming industry will grow to a market size of $583 billion by 2030, which obviously makes it one of the best investments you can make.

With so many popular video games on the market, such as Minecraft, Fortnite, RocketLeague, and Overwatch, it’s not a surprise that the video gaming industry is expected to surpass the music industry within the next few years and become the second-largest media industry.

In this article, we will offer three ways to invest in the gaming industry in 2024 and beyond.

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3 ways to invest in the gaming industry

Obviously, there are different ways to invest in the gaming industry based on an investor’s risk/reward preferences.

Angel Investor in the gaming industry

If you are looking for a high-risk/reward investment, angel investment is the perfect choice. In simple terms, angel investors provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. There are multiple platforms that enable you to invest in video gaming startups. Those include AngleList, CrunchBase, and PlayVentures.

Angel investments can range from $1,000 to $100,000 and even more than that, depending on the type of investment. Angel Investments is a high-risk investment as the founders usually don’t have enough capital to complete their product. Some Angel Investors diversify their investments to reduce the risk; hence, they invest in several start-ups and take into consideration that most of the stat-ups will not succeed. For example, an Angel Investor might invest in 10 start-ups in the gaming industry with a prediction that seven of them will fail and three might generate high revenues.

Invest in a gaming industry portfolio/ETFs

Investing in a gaming industry portfolio/ETF may be the easiest and most efficient way to enter the market. However, you won’t find many companies that offer a built-in portfolio where you can simply invest and track the portfolio’s performance.

You can find some of the most popular gaming ETFs here.

Buy video game stocks

Another way to invest in the video gaming industry is by purchasing stocks from the leading companies in the gaming industry. Through this option, you might get more flexibility and be able to diversify your portfolio based on your preferences, while on the other hand, the process might be a bit more complicated, and you will be required to invest a high amount of capital to get substantial revenues. Regardless, once you find a good broker, start searching for the best video game stocks in the market.

Here are some of the top video game stocks in 2024 and beyond:

Bottom line

With the increasing technological development, there are many unique investment opportunities in the markets such as cybersecurity stocks, Artificial Intelligence stocks, and cannabis stocks. Yet, there’s no doubt that the gaming industry is here to stay and will continue to grow in the upcoming years. In conclusion, the gaming industry is without a doubt a legitimate long term investment that may potentially render a high return.