Investing

Video Games: Worth Your Investment?

Nick Dingler
COO

Video games are a big business. The industry is projected to be worth $143 billion by 2022, and that doesn’t even include the money spent outside of video game stores on things like online subscriptions, in-game purchases, and advertising revenue. Video game stocks have been hot lately as well – Activision Blizzard (NASDAQ: ATVI) stock has grown over 30% since this time last year! It’s clear that there’s never been a better time to invest in video games.

In this article, we’ll take a look at the top five most valuable video games out there right now based on factors such as the number of copies sold and profitability per copy sold. We’ll also take an overview of how you can invest in the industry.

https://financialprofessional.com/wp-content/uploads/1922b34243103e7fb528a89ad0d8b2a3-cd748c474482b510VgnVCM200000d6c1a8c0____.png

1. Why invest in video games?

Even though the video game industry may not seem like a great investment, studies show that the video game industry pulls in over $130 billion a year in revenues.

But what about profitability? Video games are not typically profitable for developers until after they’ve sold so many copies of their game. So why would you invest when there’s no profit to be made right now? Well, this is where stocks come into play as they will help you to maintain your position in the industry.

However, the video game industry is much more volatile than other industries. For example, the video game industry is known for high volatility in both sales and profits of a specific game – which means that stocks can be just as unpredictable.

2. How to invest in video games?

Investing in video games is not as simple as investing in other stocks. Video game companies are more volatile than others, and this means that the potential for a return on investment is higher but so too is the risk of losing money.

Games like Super Mario have been increasing in value as they come out of production and are harder to find. Games like Halo and Call of Duty have seen their value increase over time as the franchise has grown in popularity, whereas some games such as Kinect Adventures started off with a high price but now are worthless due to low demand.

So where should you invest your money? Well, it depends on what type of financial risk you want to take.

Also, consider checking out companies such as Rally and Collectable that offer the opportunity to trade fractional shares of old, legendary video games that have been graded and priced. You can buy shares of a super valuable and collectible game for as low as $1. This is the best way if you would like to be hands-off and invest online.

How to find out if a game is worth buying?

Finding out if a game is worth buying is not as simple a task as one might think. Finding reviews online is helpful, but they may have been written for the purpose of getting people to buy them and so it can be hard to know how honest their feedback will be.

In order to find out if a game is worth buying, you’ll want to look at the overall score of the game from review aggregators such as Metacritic or OpenCritic.

This is a list of games that have an 80% rating on the aggregate sites:

– Final Fantasy XII (PSP)

– The Legend of Zelda: Ocarina of Time (Nintendo 64)

– Grand Theft Auto III (Playstation 3)

Sports games and titles that are updated yearly tend to have lower aggregate scores, so it’s worth checking the reviews before purchasing them.

Investing in Video Games for long-term profits

Early console video games are now worth more than ever before, so if you are lucky enough to have a collection of old games gathering dust in the attic then it may be time to start investing.

Investing in Video Game Stocks is always risky because there’s never any guarantee that they’ll perform well and some stocks only deal with one single game or company which makes it difficult for investors.

Gaming is a lucrative industry and investors are eagerly looking for the next best opportunity.

There is no way to know what the Gaming market will be like in 2020 but some stocks have performed better than others, if you’re not sure which video game stock to invest in then we recommend Nintendo due to their long-term value as well as Sony who has been performing very well.

3. Risks of investing in video games

Investors should be aware that investing in the gaming industry is always risky because there’s never any guarantee that they’ll perform well.

In addition to this, stocks only deal with one single game or company which makes it difficult for investors. Collectibles are very important to consider because they have a higher risk of going down in value.

Some collectible games are still worth investing in such as Pokémon which is very popular and has the potential to rise even more with its two new releases this year, 2020 and 2021.

Who should invest in video games and who shouldn’t?

Game prices are usually high and it is best that gamers invest in them. Video game stocks are the most common investment for those who want to invest their money into video games but they have a higher risk than collectibles because there’s more room for error.

Investors should be aware of how much time they can commit to this investment before buying any stocks or collectors.

The price for sealed games varies greatly especially if they are older and not popular anymore. The value of the game also depends on how scarce it is, meaning if there aren’t many copies left in the world or how hard it will be to find another copy. The hype around the video game can also drive the price up.

Game collectors should do their research before buying any games as some may have a high risk of going down in price while others could have the probability of changing in price.

The best way for an investor to make a profit is by investing in stocks of video game companies because there’s a higher chance that the company will be successful and deliver a return on investment.

Is video game investing a good idea for your retirement savings plan?

Video game investing is not the same as video game collecting, but they both have their benefits. If you want to invest in a collector’s item such as an old NES or PlayStation console then it can be a good idea because the prices for these items keep increasing and could provide more profit than the stock market. But if you’re looking for a valuable game that will provide you with a profit in the short term then it is more likely that investing your money elsewhere would be better.

Knowing which games to invest in can help you make smarter decisions and not waste so much of your time researching a video game, but there are many factors such as how scarce the game is or whether or not it will be a valuable game in the future.

4. Tips for investing in video game stocks

Some tips for investing in video game stocks are to always do your research before investing, invest in games that you enjoy playing or maybe are excited about, and remember that every investment comes with risk.

Some good investments are retro arcade games such as Namco’s “Ms. Pacman” and Atari Corp.’s retro console, the Ataribox. Digital games that sell well and are not likely to be pirated, such as “Fortnite,” can also have good investments.

Investing in video game stocks is a great way for gamers who love playing or want to play certain games but cannot afford a gaming system at the moment to invest their money into something they will enjoy eventually.

5. Pros and Cons of investing in Video Games

There are many things that need to be processed for investing in video games. One of the biggest cons is that there are many risks when you invest, and they can take a toll on your personal life if not done correctly. You also need to do research about which game or stocks will be successful before making an investment.

Pros

One pro of investing in video games is that it can be fun and you will have the opportunity to learn more about investing through something you love. You also get a set of skills from figuring out which stocks are good for your portfolio, how they should work together, and what risks there might be.

Another pro is being able to show off your own personal game collection or tell others why certain rare games are valuable. This is a global hobby that some people enjoy.

Last, you get to make money off of video games by investing and waiting for the stocks to go up in value. This is a great way to do well with your investments if done correctly.

Cons

One of the biggest cons is that video games are a risky investment. Many people do not know what to look for before investing, and they can lose money very quickly when the stocks go down in value instead of up.

Another con is how it takes time to learn about all the different aspects of investing in video games. You need to have enough knowledge on this subject matter to make sure they are assessing the safety of their investments.

– There are a lot of people who enjoy video games, but they might not want to invest in them because it’s just too risky for them.

– It can take time and research into certain stocks before you actually start investing your money and waiting for the stock value to go up.

Conclusion: Is it worth your money or time?

In conclusion, video games are a multi-billion dollar industry that has the potential to grow exponentially. If you want to invest in this market, there are many ways for you to do so. You can buy stock in one of the top game companies like Nintendo or Sony and increase your investment over time as they release new games and make more money. Or you could put some cash into an index fund that invests across several different sectors including technology stocks which include video gaming stocks. You can even use companies like Rally and Collectable to invest in fractional shares of video games online. It’s up to you! No matter what route you choose, it can be exciting learning about these cool things called Video Games!

Browse the latest investment firms
Nick Dingler
Die Hard Creator & Collector

Are you a Financial Professional?

Our FinPro program matches financial professionals with new clients across the U.S.