by Invest in Gaming
We play on our phones, tablets, and laptops, we create virtual lives, hang out with friends virtually, and play with people from all over the world. Gaming has become big business and is expected to grow to a $200 billion industry within the next 2-3 years. The question is if gaming companies can sustain growth, and provide an interesting opportunity for Laker Asset Management to invest in.
One of the signs that companies within the sector will continue to grow, is the companies increased spending on quality. A videogame, like Call of Duty ca cost $250 million to make. Companies like EA, Activision Blizzard, and Take Two have all increased their Research and Development spending as well.
Not only is the quality increasing, but the number of people playing video games is also rising. It is expected that in 2021 the number of gamers worldwide will pass 2.7 billion people. This clearly shows that the industry is boomingn.
This past year the biggest video game producers in the world have seen a decrease in its stock prices, and their P/E have followed. However, there are many ways the club can invest in gaming, and it doesn’t necessarily have to involve video game producers. Other interesting areas are gaming equipment, gaming teams, and services. Our team will develop a thorough analysis of this industry within the next couple of days.
