Is investment in gaming stocks a good decision for you?

SW Londoner

13 March 2023

Is investment in gaming stocks a good decision for you?

Many indicators and expert opinions suggest gaming is the future of entertainment.

For the past few years, gaming has lived up to the hype of being the future of the entertainment industry.

In fact, there have been plenty of innovations within this space to evolve into a huge media force that is now outperforming music and film revenues.

With the explosion of iGaming, the industry is a thriving microcosm that has opened a new investment opportunity for stock traders.

The US and China might be the leaders in the gaming industry, but the UK is also turning out to be a powerhouse in Europe – several gaming companies are now also listed on the London Stock Exchange.

Investing in these stocks might be the best financial decision you ever made, but what are these stocks, and how do you invest in them?

What are gaming stocks?

Gaming stocks are basically companies listed on an exchange that mainly deal with the design and distribution of video games.

The classification is broad and can also include service providers, graphic consultants and animators.

There are several well-performing gaming stocks that you can invest in, whether in Europe or from anywhere across the globe. Here are the top gaming stocks you should consider.

Top rated in the UK

Frontier Development

If you’re looking to invest in a gaming stock that is based in the UK, Frontier Development PLC should tick the boxes.

This company, which also operates in North America, develops and publishes a variety of video games both solely and on behalf of other developers.

Their products for the interactive entertainment world are based on its COBRA game development framework and cut across several genres.

Although most of their games are intended for PCs, they have also been known to produce games for gaming consoles.

Frontier’s collection of video games includes Planet Coaster, Elite Dangerous, Jurassic World Evolution (1&2) and Planet Zoo, among others.

The company also has several subsidiaries such as Frontier Games Ltd, Complex Games Inc and Frontier Development Inc.

With its large market, Frontier Development PLC commands a sizeable market capitalization, making its stocks some of the most attractive on the London Stock Exchange.

Keyword Studios

Another outstanding entry with an attractive stock is Keyword Studios.

This company describes itself as an international provider of global video games technical services. This covers marketing, art creation, audio, functional testing, player support, and mainly game development.

With art creation, Keyword Studios can develop graphical art assets for various video games.

Its audio services category is broad, and it covers things such as music and sound design, original voice recording and multiple language voice-over.

Keyword Studio’s plethora of services in the gaming sector has made it an attractive venture, making its shares gain considerable value over the years.

For this reason, you might want to invest in this gaming stock upon doing your research.

Games Workshop Groups

There are not many companies that can brag about producing so many fantasy miniatures, but this UK-based company has really made strides in this niche with its design, manufacture, retailing and distribution of a range of Warhammer games.

This includes Age of Sigmar, Warhammer 40,000 games, novels and other model kits.

Games Workshop Group operates through its design, manufacturing and logistics under sales channels. It also operates under three other segments: licensing, group operations, and support.

Interestingly, this company has about 523 retail stores under the Warhammer or Games Workshop brand.

It also has a web store with retail channels in 50 countries worldwide.

If you need more than this to convince you to invest in these gaming stocks, then you might have better luck trying out other gaming stocks outside the UK.

Non-UK gaming stocks

Activision Blizzard Inc

If you have been in the gaming industry for long, then Activision Blizzard needs no introduction.

This California-based video games company has been behind some of the most notable games, including Call of Duty, World of Warcraft, Candy Crush, Crash Bandicoot and Spyro.

The company is the proud producer of the World of Warcraft: Shadowlands, a game that sold a record-breaking 3.7 million copies on its first day.

The popularity of these games has given Activision Blizzard a foothold in the gaming market, making it one of the top-rated gaming stocks.

Activision Blizzard Inc is a listed gaming stock on Nasdaq and a component of Nasdaq 100 as well as S&P 500 indices.

It appears to be a low-risk investment option, but it would be wise to carry out your own research before committing any funds to this stock.

NetEnt AB ADR

If you’ve ever gone gambling in any major casino anywhere in the world, then chances are that you played a game provided by NetEnt.

NetEnt casinos are very popular with players, and the company is a seasoned provider of gaming solutions to top casino operators globally.

Its vast array of casino games includes slots, table games, and live casino games.

The company offers its gaming solutions through NetEnt Engage, NetEnt Live and Pooled Jackpots.

It is estimated that the total number of casino games provided by NetEnt is likely above 200. All the gaming solutions are available in 25 languages.

Although this company was founded as NetEnt, it operates as a Subsidiary of Evolution Gaming, another big player in the iGaming industry.

Besides Sweden, you can buy NetEnt stocks in Spain, the UK and the US.

Nintendo

This list would not be complete without Nintendo, one of the world’s best-known gaming companies.

The company has been around for quite a while, which means there’s plenty of historical data about the stock’s performance.

Everyone knows what Nintendo produces, and its big stock advances come with its game console releases.

This was evident with Nintendo Switch, which played a significant part in the company’s revenue increase in 2020.

Investing in this gaming stock can be a profitable venture if it keeps on with this innovative culture.

The Nintendo gaming stock is listed on the Tokyo Stock Exchange as well as Frankfurt and Mexican Stock Exchanges. It is also a component of the TOPIX index.