For investors looking to diversify their portfolios, they might think about adding a sector that is growing exponentially, I’m talking about investing in gaming.
Ask yourself this question, do you really think you will return to normal life even when lockdown is over?
Do not be under any illusions, as I have already said in other articles our lives will change, the society will be increasingly closed, even before coronavirus so many people lived on social networks, the following will be even more internet dependent. Look at Amazon and Netflix, the streaming company was in trouble before coronavirus while now if you look at the chart from the beginning of January to today you will see an incredible leap.
In the last 2 years the global gaming market has risen by 10%, we are talking about over 150 billion dollars with a forecast in the next 2/3 years of 200 billion dollars. The numbers in the gaming world are impressive, console sales or subscriptions to online platforms exploded just look Steam or Twitch, which service allows viewers to watch gaming events in streaming mode.
How do gaming companies make money?
- From selling games of course and from the production of free games which through advertising bring great profits
- Buying games inside smartphone apps
- Live gaming leagues have exploded in recent years, in fact, world events have been organized with millions of participants
- Cloud gaming that through high-performance streaming platforms with hardware, graphics cards, Ram and 5G will increase user growth
To invest I selected some manufacturers and an Etf that is a financial instrument:
- Etf Vaneck Vectors Video Gaming
- Google Stadia (Alphabet)
- Xcloud (Microsoft)
- Electronic Arts
The Etf is made up of several companies that work in gaming such as software development, hardware and Esports, I think it is a long-term investment, gaming as mentioned at the beginning adapts to addict gamer and new users who, due to the pandemic and lockdown imposed by governments will subscribe to new services and apps.