Best Video Game Stocks to Buy in 2022

With more than 3 Billion users playing video games on a daily basis, investing in the best Video Game Stocks can turn out to be a game-changer. It has the potential give you over-the-top healthy short-term returns, along with significant long-term growth potential.

Companies that continue to adapt to player expectations and shape their preferences for interactive electronic entertainment are well-positioned to generate excellent shareholder returns. Top gaming stocks to buy for long-term investments include Capcom (OTC: CCOEF), Take-Two Interactive (NASDAQ: TTWO), Microsoft (NASDAQ: MSFT), Electronic Arts (NASDAQ: EA), and Nintendo (OTC: NTDOY). Now, let us take a closer look at each of these companies in more detail:

CAPCOM (OTC: CCOEF)

Resident Evil developer and publisher based in Japan.

Market cap –$ 4.6 billion.

Capcom is thriving as a video game developer and publisher, thanks to successful releases that boosted the company’s core brands and resulted in excellent sales. The company’s properties include Mega Man, Devil May Cry, and Street Fighter, as well as the Resident Evil and Monster Hunter franchises. Capcom also has a long history of lesser-known but beloved classic games.

There are many reasons to love this long-running corporation, which has dominated the video game business for decades and created some of the most memorable gaming experiences ever. Since its launch in May 2021, Capcom’s Resident Evil Village has sold over 5 million units.

Capcom pays a healthy dividend and distributes around 30% of its annual income to shareholders through dividend payments. In the video game sector, earnings can be volatile, but Capcom’s management prioritizes returning income to shareholders.

TWO-TAKE INTERACTIVE (NASDAQ: TTWO)

The studio that created the Grand Theft Auto series.

Market cap – $17.6 billion.

Take-Two Interactive’s worth skyrocketed initially thanks to the Grand Theft Auto series. It is the company’s most important and successful IP, as well as one of the most profitable gaming franchises ever. The Dead Redemption series by Take- Two has received great reviews as well, and its NBA 2K basketball series is the industry leader in its own right. In addition, the company has several minor series and other development projects that helps it expand.

Even though game production is generally tough and resource-intensive, the development studios of Take-main Two’s brands have continuously delivered excellent outcomes. Take-Two knows how to elicit high levels of engagement and in-game spending from gamers. Because of its excellent financial position, the company can seek new development prospects in areas like mobile gaming and E-sports.

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MICROSOFT (NASDAQ: MSFT)

Xbox gaming systems are sold by Microsoft, which also controls more than a dozen gaming companies, and has recently agreed to buy Activision Blizzard also.

Market cap – $2.28 trillion.

Microsoft is best recognized for its productivity software and cloud computing, but it’s also a key player in the video game industry. Microsoft is the originator of the Xbox game platform and owns multiple game companies.

The company owns Minecraft creator, Mojang, and Elder Scrolls producer Bethesda, as well as video game behemoth Activision Blizzard.

Activision Blizzard has several iconic franchises, including Call of Duty, World of Warcraft, and Candy Crush under its banner.

With a significant presence in mobile gaming, Activision is a pioneer in the E-sports market. Most importantly, the Activision merger gives it a much stronger hand in its effort to develop and dominate the metaverse.

ELECTRONIC ARTS (NASDAQ: EA)

Madden and FIFA are the kings of sports games.

Market cap – $36.9 billion.

Established in 1982, EA continues to be a key player in the interactive entertainment industry’s progress. In terms of revenue, it is the second-largest video game corporation, and it dominates the sports gaming subgenre.

The Sims, Apex Legends, and Battlefield are among the high-profile original IP held by the pioneering game publisher, as are successful licensed titles like Madden NFL and FIFA. The acquisition of Glu Mobile by Electronic Arts indicates that the firm is now aggressively moving into mobile games.

NINTENDO (OTC: NTDOY)

Wii, Switch, and Mario are all made by Nintendo, a Japanese video game and system manufacturer.

Market cap – $53.8 billion.

Nintendo is a video game console industry pioneer. Nintendo released the Nintendo Entertainment System in the 1980s, which was followed by a series of successful systems. Since its launch, Nintendo’s most recent platform, the Switch, has sold over 100 million copies worldwide.

Nintendo is well-known for creating some of the most legendary games on its various platforms. Mario, Zelda, Super Smash Bros., Animal Crossing, and Pokemon are just a handful of the iconic properties that have spawned an endless number of games and sold hundreds of millions of units.

Nintendo has remained one of the best video game stocks to buy, despite all of the changes in the industry over the previous decades.

All of this suggests that investing in the gaming industry could pay off in the coming years, if not decades. But, it all boils down to buying the best stocks and keeping up with the global gaming trends.

The Unstoppable Rise of the Gaming Industry

Advancements in technologies such as Cloud Computing, Artificial Intelligence, and Virtual & Augmented Reality have transformed the Gaming Industry to unprecedented heights.

The online gaming market has changed dramatically. The Gaming industry was worth more than 150 Billion back in 2020, just before the Pandemic hit. It is all set to reach 256 Billion by 2025. Increased customer participation, engagement, and subscriptions are increasingly establishing it as a promising bet. High-fidelity mobile gaming is on the rise, and today, E-sports alone enjoys a viewer base of 456 Million people. As a matter of fact, the revenue generated by the Gaming Industry is greater than the revenue generated by the Box-office, Music Industry, and all major Sports Leagues put together!

These are impressive figures, right?

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The online gaming and video game industry is more than just a booming industry – it has completely altered the definition of how we consume entertainment. At present, there are more than 2.3 billion active gamers around the world. It includes everyone from PC gamers to casual mobile phone gamers to console gamers (Play station, Xbox).

HOW DO PROFESSIONAL GAMERS MAKE MONEY?

Earning by playing video games was always thought of as a pipe dream. Outside of a small group of highly interested players and fans, the E-sports sector was still in its infancy. Competitive gaming was barely known outside of a core group of highly engaged players and fans.

In recent times, E-sports has skyrocketed in popularity like never before. As gaming’s zeitgeist has risen, so have the prospects to make a successful profession out of something that was once thought to be nothing more than a waste of time by many.

Generally, Prize money, salary, sponsorships, live-streaming, and video-on-demand material are the five main sources of income for professional gamers.

PRIZE MONEY

Prize money is the simplest and oldest way for a professional player to make money online. A player receives a portion of the prize pool if they place high enough in a tournament. After all, if an esports athlete or organization does poorly at a competition, they may lose money by participating. Tired of the insecurity that came with being a smaller-scale professional gamer, esports players began looking for options that offered greater stability and less reliance on prize money.

SALARY

Cloud9, Team SoloMid (TSM), and Team Liquid were among the first esports teams to form. Having a guaranteed living salary was a tremendous relief for professional gamers who had previously relied solely on prize money to make a living. Players could concentrate on doing well in tournaments without the added burden of potentially losing money due to competitive pay. Instead of being a competitor’s primary source of income, prize money was now an added benefit if a team did well.

Sponsorships, Twitch, and YouTube are the next three ways professional gamers can generate money, and they apply not only to esports competitors but also to individual content creators who focus on holistic enjoyment rather than pure performance.

SPONSORSHIPS

They are another popular and lucrative source of money for both professional players and streamers. Companies not associated with video games or esports began sponsoring these individuals, as well as teams and leagues, in growing numbers as esports players and streamers became more visible to the general public by gaining large fanbases. Sponsorships with high-profile players and teams are available from beverage businesses like Red Bull, Monster Energy, and Mountain Dew, as well as computer firms like Intel and AMD. In exchange, the groups and players promote their sponsors’ products on Twitch and social media.

TWITCH (live-streaming)

Twitch is the most popular streaming network, but it is up against Facebook Gaming and YouTube, which is a traditional VOD powerhouse.

Streaming is the most common way for non-competitive gamers to make a living in the video game industry. While streaming has expanded to encompass in-real-life (IRL) activities such as cooking, watching movies, or simply chatting, gaming was unquestionably the start of this quickly developing sector, and it continues to account for a major amount of overall traffic on streaming sites.

Twitch is the market leader, with over 72 percent of the market share. Becoming a partner, which allows channels to charge users a fee for access to content, is the most common way for streamers to make money on Twitch. While subscriptions are not required to watch normal streaming material, they do allow members to reward their favorite content creators and get access to personalized emotes, among other things.

YOUTUBE

Esports experts and streamers frequently upload short, edited versions of their Twitch streaming sessions to YouTube so that fans who can’t watch the stream live may still see it.

Another way many professional gamers monetize their material is by uploading VOD footage to YouTube. Many professional gamers have editors that can reduce an eight- or ten-hour broadcasting session into a ten- to twenty-minute YouTube VOD, allowing fans who can’t watch material in real-time (or for an entire session) to still consume content from their favorite creators.

Professional gamers have a variety of revenue streams available to them.

Professional gamers today are significantly more financially secure than those who tried to make a living just a few years ago. Thanks to the rise of esports and live-streaming of gaming material in recent years, there are no shortages of potential income sources for the modern gamer, with professional teams and leagues offering guaranteed salaries with benefits. Nowadays, you can even win money by playing your favorite childhood board games like ludo money game very easily without even investing much of your time. The days of parents telling their children that there are no jobs in gaming are long gone; nowadays, it’s a distinct possibility.

MOST POPULAR E-SPORTS TOURNAMENTS IN THE WORLD

People across the world enjoy professional E-sports tournaments, as they can be seen online in the comfort of one’s home. As a result, some of the Most Popular E-sports tournaments in the world nowadays get millions of viewers, more than any traditional sports games.

Here, we’ve compiled a list of some of the most popular E-sports tournaments in the world, which you can enjoy comfortably from your couch:

HONOR OF KINGS WORLD CHAMPION CUP

The Honor of Kings World Champion Cup is the highest-paying competition in the Chinese mobile E-sports ecosystems. Inspired by Riot Games’ League of Legends, Honor of Kings (HOK) is a quick-match mobile multiplayer online game. Honor of Kings has over 80 million daily active players and 200 million monthly active players, making it the most popular game in the world. With over $13.4 billion in revenue, it is the highest-grossing mobile game of all time and the most downloaded app globally.

EVO CHAMPIONSHIP SERIES

Tom Cannon founded the Evolution Championship Series, is an annual E-sports event that focuses solely on fighting games. The tournaments are entirely open and follows a double-elimination format. Contestants come from all over the world to compete, most notably Japan, as with Super Battle Opera. The first Evolution originally featured Battle by the Bay, a Super Street Fighter II Turbo and Street Fighter Alpha 2 tournament. In 2002, it changed its name to Evo. Viewership has increased with each subsequent tournament.

DOTA 2 “THE INTERNATIONAL”

The International is an annual E-sports world championship tournament for the video game Dota 2, hosted and produced by Valve. The International debuted at Gamescom in 2011 as a promotional event for the game. The tournament features 20 teams, with 12 based on Dota Pro Circuit final results and six more from winning regional playoffs in North America, South America, Southeast Asia, China, Eastern Europe, and Western Europe.

Since 2013, the tournament’s prize money has been crowdfunded through a battle pass system within the game.

FORTNITE WORLD CUP CHAMPION

The Fortnite World Cup is an annual E-sports competition based on the video game Fortnite, released in July 2017 by Epic Games.  Epic created a Fortnite variant and released it in September 2017 as Fortnite Battle Royale. Fortnite Battle Royale quickly gained popularity, and by June 2018, the game had 125 million players. SuperData Research estimated Fortnite Battle Royale’s total revenue in 2018 to be $2.4 billion.

LEAGUE OF LEGENDS WORLD CHAMPIONSHIP

The League of Legends World Championship is Riot Games’ annual professional League of Legends world championship event. Teams fight for the Summoner’s Cup, a 70-pound (32-kilogram) trophy, and a multi-million-dollar prize pool. In 2018, 99.6 million people watched the final, breaking the previous record of 97.6 million established in 2017.

The League of Legends World Championships has grown in popularity to become one of the most watched events. Every year, the event moves its locations to different major countries and regions.  

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