Gaming has exploded in popularity recently, with a market of hundreds of billion which has snowballed since the pandemic. This growth is thanks to new technologies like virtual reality and cloud gaming and the increasing love for video games. Because of this, investing in gaming companies has become an exciting opportunity for investors looking to get in on the action.
You might already know about eSports betting and want to take your passion for it to the next level. Or maybe you’re new to the world of eSports and searching for a unique and exciting hobby. Either way, you have the option to invest in esports stocks. While you could start your own team or invest as a sponsor, buying shares on the stock market is a more accessible route. There are plenty of gaming companies listed on the stock exchange that you can invest in.
In this article, we’ll explore some gaming companies that are available on the stock exchange and talk about their potential for growth and success. We’ll focus on big global esports heavy brands including Activision Blizzard, Electronic Arts (EA) who recently announced EA Sports FC to topple FIFA, Guild Esports and Ubisoft Entertainment.
Before we jump into those companies, we’ll give you an overview of the gaming industry and explain why investing in gaming companies can be a smart choice. We’ll also touch on things like industry competition, technology advancements, regulations and risks, and market trends and consumer preferences - all important things to think about before investing in gaming companies.
Find Best Esports Investments 2023
Esports gaming has become a huge global industry, with the growth being driven by various key esports companies. For investors looking to make a profit from esports, these companies are considered stocks to buy.
The pandemic boosted the already popular gaming industry, and over the last decade, esports has evolved from a niche activity to a mainstream one. The global esports market is set to be worth billions of dollars by 2025, fueled by the popularity of sports video games such as LOL, CSGO, FIFA, and Overwatch.
Even celebrities from traditional sporting backgrounds like Michael Jordan and David Beckham, as well as rapper Drake, have endorsed esports.
Professional esports athletes, or “pro gamers,” can earn millions of dollars playing in tournaments. As the esports industry continues to grow, it shows no signs of slowing down.
What eSports Stocks to Buy 2023
Investing in eSports can turn a real profit as the industry continues to grow rapidly. While there aren’t many companies solely dedicated to eSports, there are several that have incorporated it into their business model.
Read on to learn about which companies you should invest in, buy eSports stocks, and potentially benefit from their long-term success. We’ll provide insight into eSports stocks that are worth buying and have the potential to become long-term winners.
Electronic Arts (EA)
Electronic Arts is a major player in the world of esports, and they’ve been around for a long time - since way back in 1982. EA has created some of the most popular sports games around, like FIFA and Madden NFL, as well as fan-favorite franchises like Battlefield and The Sims.
Lately, they’ve been putting a lot of money and effort into developing new technology, such as cloud gaming and VR, so it’s clear they’re committed to staying at the forefront of the industry
Modern Times Group (MTG)
A scandi company that investors may consider when looking for opportunities to invest in the esports industry is Modern Times Group (MTG), a Swedish company that has a subdivision called MTGx. MTG operates in the esports, gaming, and digital entertainment sectors.
MTG is the parent company of ESL, the world’s largest esports company, which operates and broadcasts tournaments across various gaming titles. MTG also owns DreamHack, a leading gaming festival that hosts live esports events globally and owns a majority stake in the gaming platform InnoGames.
MTG has a strong foothold in the esports and gaming industries and is well-positioned to benefit from the expected growth in these sectors. Therefore, MTG is another company that investors may want to consider when looking for potential investments in the esports industry.
Activision Blizzard is another top gaming company that investors may consider when looking for opportunities to invest in the esports industry. An innovative developer and publisher of video games, including popular titles such as Call of Duty, World of Warcraft, and Overwatch.
The company also owns Major League Gaming, a professional esports organization that hosts tournaments across various gaming titles boasting a digital platform for live-streaming esports events around the world, such as the popular FPS video game franchise: Call of Duty.
The Californian company also own and run the “Overwatch League,” a pro esports league for the FPS video game Overwatch which attracts over 10 million viewers every year.
In early 2020, YouTube collaborated with Activision Blizzard in three-year exclusive deal to serve as broadcaster for all Activision Blizzard esports events, including the Overwatch League, replacing Twitch. The deal was reported to be in the region $160 million.
On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion in an all-cash deal, or approximately $95 per share, however, the UK blocked Microsoft’s $69 billion acquisition of Activision Blizzard over competition concerns, dealing an unexpected blow which is still ongoing.
Ubisoft Entertainment (UBSFY)
Ubisoft Entertainment has been a key player in the gaming industry since 1986, with a games portfolio that includes classic titles such as Rayman and fan favorites such as Assassin’s Creed and Tom Clancy’s Rainbow Six. The latter helped establish Ubisoft’s position in the industry, especially in esports.
Ubisoft’s innovative approach to game development allows the company to create new revenue streams while eliminating risks. Alongside its impressive financial performance, Ubisoft has expanded its presence globally, with established markets in Europe, North America, and Asia.
With its extensive reach and strong reputation, investing in Ubisoft could be a wise choice for those interested in the esports industry.
Guild Esports was the first esports organisation to join the London Stock Exchange. Guild used funds raised to invest in and grow the Guild brand, recruit new pro players and scale into various eSports disciplines.
Guild Esports is a relatively new but rapidly growing company that investors may consider when looking for opportunities to invest in the esports industry. The organisation, co-owned by former English footballer David Beckham launched in 2020 entering Rocket League, later expanding into FIFA by singing Niklas ‘NRaseck’ Raseck in a big money deal. Today Guild strong presence in popular esports titles such as Fortnite, Rocket League, FIFA and Overwatch.
UK based Guild Esports focuses on developing and nurturing professional esports talent and has already secured partnerships with major brands such as Sky, demonstrating its ability to attract major sponsors and build its brand in the esports industry. The company also plans to expand into other popular esports titles and is well-positioned to benefit from the expected growth in the esports industry.
For investors looking for a newer but promising company in the esports industry, Guild Esports is one to consider, given its strong management team and growing presence in the industry.
Flutter Entertainment PLC
Flutter Entertainment whose brands include Pokerstars, which is one of the largest gambling sites on a global scale, makes the list.
Flutter is a company worth considering when it comes to investing in the esports industry. The global sports betting and gaming operator owns several popular gaming brands, including Paddy Power, Betfair, and Sky Bet.
Flutter also owns Fanduel which is one the top names in fantasy sports in the US.
FanDuel was bought by Flutter for US$4bn in December 2020, and has emerged as a major competitor to DraftKings since the acquisition. It has also expanded into streaming with the FanDuel TV app.
Such is FanDuel’s rate of growth – supported by new liberalised gambling laws in the US – that it could soon become Flutter’s main revenue stream.
With a strong foothold in the sports betting industry and a growing interest in esports betting, Flutter Entertainment is well-positioned to benefit from the growth of the esports industry especially in the US. If investing in companies that are focused on eSports betting floats your boat then Flutter is a solid bet.
Factors to consider before investing in gaming companies
All esports companies listed have strong track records of success in the gaming industry and have demonstrated a future-proof commitment to innovation and growth in our opinion.
Before investing in the esports gaming companies listed on this page, it’s important to weigh up several factors to ensure that you make a wise investment that will yield a good return on investment going forward. Here are some key factors to consider when investing in esports companies:
Competitive landscape of the gaming industry
Many big fish are vying for market share in the fiercely competitive esports sector. It’s critical to evaluate an esports company’s competitive landscape before contemplating investing in it. Considerations including the firm’s market share, the strength of its franchises, and its capacity for innovation and following the latest trends should all be taken into account.
That said, all companies listed are in a good position to capitalize on the explosive growth in popularity of esports in the coming years. As the popularity of esports continues to soar, revenue from sponsorships, advertising, media rights, merchandise, tickets, and streaming is expected to increase as well. Although China and Korea currently dominate the market, the US is not far behind. With all these factors in play, investing in esports is a potentially lucrative opportunity for investors.
The esports industry is as fast as fast fashion, with new tech and trends spawning all the time. When considering investing in a gaming company, you should evaluate the company’s ability to stay ahead of the curve and adapt to new technologies. The company’s investment in research and development, its partnerships with tech providers, and its ability to leverage emerging technologies such as VR, AI, and cloud gaming are all key factors to investigate.
The esports industry is subject to heaps of regulatory risks, including regulations related to gambling, data privacy, and content ratings. When considering investing in an esports company, you should assess the potential regulatory risks facing the company and evaluate its ability to comply with relevant regulations.
Market Trends and consumer preferences
The esports industry is highly sensitive to market trends and consumer preferences. When considering investing in esports companies, you should assess each outfit’s ability to anticipate and respond to changing consumer preferences. This includes factors such as the company’s ability to develop new and innovative game titles, its ability to monetize its franchises effectively, and its ability to build and maintain a loyal fan base.
Investing in gaming companies can be a rewarding opportunity for investors looking to diversify their portfolio. Companies such as Activision Blizzard and Electronic have demonstrated strong track records of success in the gaming industry and have shown a commitment to innovation and growth.
However, while esports is experiencing sustained growth, some worry that the bubble may burst or decline so before investing in any gaming company, it is important to consider a range of factors, including the competitive landscape of the industry, technological advancements, regulatory risks, and market trends and consumer preferences. By taking these factors into account, investors can make informed investment decisions and potentially capitalize on the growth opportunities presented by the gaming industry.
As with any investment, it is important to do your own research and seek professional advice before making any investment decisions. Consider a range of factors, including the competitive landscape of the gaming industry, technological advancements, regulatory risks, and market trends plus consumer preferences.
With the right research and due diligence, investing in gaming companies on the stock exchange can be a lucrative and rewarding investment opportunity.