Already one of the world’s biggest entertainment industries, the 21st century has seen the area of video gaming reach a whole new level. Advancing technology, better games, and a greater player experience are all undoubtedly major driving factors towards this growth, but perhaps the single biggest catalyst has been the rapid explosion of the esports sector.
A mainstay of the Gaming news headlines, competitive video gaming – or esports as it has come to be known – as not only big in terms of popularity but is also huge in terms of the money involved. Once little more than an entertaining pastime, video gaming is now a legitimate career choice for the most skilled players, and a potentially lucrative one at that – professional gamer and Dota 2 superstar Johan “Notail” Sundstein having racked up career earnings of no less than $7.2 million as of September 2022. The industry as a while meanwhile seems to be on a trajectory set for the stars, being fore4cast to grow by 21.9 percent by 2030 to reach an astronomical figure of $12.5billion.
Of course, whenever there is big money involved, investors are never too far behind. As a result, the queue of those looking for a route into the industry seems to be growing by the day. Whether they be professional traders, or those looking to add esports to their trades with a top Forex broker as detailed in this IG Review, the thirst for esports stocks and related investments has never been so great.
But how to go about investing in the area which many predict to be the next huge boom sector?
Despite only being a newly emerging product in comparison with many more established investment options, adding esports to your portfolio is easier than you might imagine. Most investors looking to dip their toes into the exciting esports waters do so via one of the following methods.
The most straightforward place to start is with publicly traded stocks. Despite its relatively embryonic status, it is still possible to create a diversified, risk-weighted portfolio tailored to your own needs. Stocks such as Amazon – who own Twitch – and established developers such as Activision Blizzard, Tencent Holdings, and Take-Two Interactive ought to bring stability, enabling investors to take smaller punts on a selection of the newer companies entering the industry.
Esports Related Stocks:
As in many investment areas, it can pay to think a little outside of the box and seek out investments in companies whose success is directly linked to the esports industry. In video gaming, the most obvious first port of call is the hardware providers. Examples are; NVIDIA which currently produce the market-leading gaming chip, and traditional giants Microsoft and Logitech. Keeping your finger on the pulse and staying abreast of the latest news regarding hardware developments may open up a potential route to profit.
Esports-related Exchange Traded Funds (ETF):
Alternatively, you may wish to consider investing in an ETF with a healthy interest in the esports industry. Likely a major area for growth in the coming years, this type of product is still in its infancy at present, but there are nevertheless a number of viable options to consider, including:
Roundhill BITKRAFT Esports & Digital Entertainment ETF.
Video Game Tech ETF
VanEck Vectors Video Gaming and Esports ETF
Global X Video Games & Esports ETF