Gaming has become more popular than any recreational activity known to man on this planet. And it is occurring at younger and younger ages and is taking up most of the people’s free time. Gone are the days when kids used to ride their bikes down to the neighbors’ house for a friendly video game or two. No, now kids sit in their bedrooms, throw on their headsets and can play live with their friends (or complete strangers) without ever stepping foot out of their bedrooms. And it is not just for children anymore. Teens, twenty-somethings all the way up to those in their 50’s have joined the trend.
One of the biggest attractions to gaming is that one can relax and be entertained at the same time, playing different roles or actors in a game, almost like taking on a new identity in that particular game. Many researchers have reported that the subjects studied felt that gaming was a form of escaping from themselves, but at the same time becoming more outgoing and feeling better about themselves when they play. Almost like becoming the superhero, or the villain that dominates and eventually wins.
And talk about accessibility. This can be done by:
- desktop PC,
- hand-held games.
Game developers have made streaming easy and free at times, and the sheer variety of choices that the player has makes possibilities endless and very appealing. There are also game companies that offer gamers chances to gain cash from their gaming skills, possibly casino games.
So, with so many new technologies, choices for gaming, and constant advancements in graphics to entice gamers, there is a constant growth in the industry and there does not look to be anything to stop it or slow it down. With this being said, an exponential growth trend has been growing vastly under investor’s noses, yet many have never seriously looked at investing in video game stock. Instead of waiting for annual game releases that are not always reliable for reportable revenue performance, game companies now use digital distribution strategies as a way to generate year-round revenue and increase margins.
Companies such as Take-Two Interactive, Electronic Arts, And Activision Blizzard are the three largest game-based companies. They acquire half of their annual revenue from sales with digital content that gamers purchase while actually playing the games. This, in turn, will lead a consumer to more time spent playing the games, and inevitably more money spent while playing. All three of these companies have seen year to date gains in profits this year with large projected 5-year gain profits.
The gaming market clearly has good investment opportunities that can easily be capitalized on, given the right strategic plan. Games are no longer seen as a children’s activity, but as a way to bond with friends and family, and for general relaxation. This is a perfect reason to invest because it is now seen as something that everyone can participate in, and one of the most widely used forms of recreation around the world.
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