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.
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.