There are many different sectors in which you could invest money, from health care to energy, tech or real estate. The vital thing for investors is to thoroughly understand which sectors warrant their focus and are likely to provide good returns on any capital they invest.
One of the really hot sectors for investors currently is the gaming sector. Demand for video games and the equipment to play them on and with is huge. That is why the companies involved in the sector are seeing their stock prices rise. Shares of the biggest gaming firms have seen double or even triple-digit gains in recent times. When you add in that the first dedicated gaming ETF (in Managers Trust Video Game Tech) has risen by around 50 percent over the past year then the picture is even more appealing.
For any investor, this is a great sign and means that it is a sector that merits closer inspection.
Top Reasons To Invest In The Gaming Sector
If you are looking for some great reasons to put your money into gaming shares, then the below might help you decide.
* The sector is booming – as noted above the gaming sector is in rude health right now and that makes it a good place to invest some money. Although you should always try to buy shares at favorable prices, the growth the sector has seen in recent times means that you can still make money even if the price for shares is high. NPD Group reported that the gaming sector was up 59 percent in 2018 from 2017 with total industry game revenue now of over $1 billion. Big companies like Activision, Blizzard, and EA lead the way here regarding the gaming companies to look at. These kinds of figures show why gaming could generate handsome returns for the savvy investor.
* Future growth expected – of course, the likelihood for it to move upward in the future is also a major consideration. The great news for gaming is that this seems fairly certain as more people enter the industry to enjoy playing video games or buy the hardware needed to do so. The jump in revenue each year backs this up and many financial experts believe this will continue for the foreseeable future. As gaming companies make more money, they re-invest it into new games or hardware to push the sector further forward.
* Esports – when it comes to investing in gaming then Esports has to be mentioned. This is a big player within gaming already but is set to take off in the next few years. The great thing for investors is that this should take the whole gaming industry along for the ride! This is a niche within gaming that is expected to hit over $1 billion in revenue alone by 2020. That indicates that investing in Esport related companies now or in those that provide the hardware to power the Esports tournaments could really pay off in a few years.
* Move to year-round revenue streams – one of the traditional barriers to investing in gaming was the fixed nature of companies revenue streams. In the past, a company would simply release a few games per year and that was pretty much it. In-between the sales of these games, there was nothing going on and that made it tough for investors to get involved. This has changed in recent times though. Many of the big companies like Take-Two Interactive now release digital or in-game content to players all year which lowers risk to investors in their business.
Invest In Gaming The Smart Way
If you are an experienced trader, then you may not need help in finding the best gaming investments to make. For most people, however, this is not the case. Getting the right advice around any investment is key and this is true for putting money into gaming.
The Creative Planning firm of independent registered advisors highlight why this makes sense with their mixture of expert advice based on clients’ specific needs. Getting this kind of impartial help can really be the difference in seeing a return on your initial outlay or a loss. It may be, for example, that the best course of action is to invest in a basket of gaming ETF’s rather than individual company shares.
Gaming Is A Hot Pick For Investors
When you look at the huge revenues involved and the expected future growth then the gaming sector is really on the up. That has been the case for a few years now but with the appetite for gaming consistently growing then it would not appear to be slowing down anytime soon. As new technology powers even more immersive games the companies involved will be spurred on to even greater success.
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