Video games are one of the largest industries in the world. In fact, the category is larger than the combined value of the music and film industries, worth about $200 billion in 2021. With new consoles, virtual reality (VR), and other gaming methods hitting the market this decade, third parties are estimating the industry will continue to grow by more than 10% until 2030. This is a huge tailwind and should open up a lot of new revenue opportunities for high-end video game companies.

Here are two video game stocks to buy now and hold onto for at least a decade.

1. Electronic Art

Electronic art (EA -0.13%) is one of the largest game publishers in the world. You can divide the gaming division into two categories: sports and non-sports franchises.

EA is the leader in sports video games and has been for decades. The most popular title is FIFA (a football game), but it also has Madden NFL, hockey, golf, Formula 1 and an upcoming college football game. With exclusive licenses with leagues and players from these different sports, EA has a virtual monopoly on these sports simulation franchises, making the revenue extremely reliable as new titles are released every year.

For non-sports, EA owns franchises such as the Sims, Battlefield, Apex Legends, and numerous other smaller titles. It also has a strong relationship with LucasFilm to produce Star Wars spell.

Financially, the most important games for EA are: FIFA and Apex Legends. In fiscal 2022, which ended in March, both franchises appeared to be healthy. Apex Legends the number of bookings (the revenue equivalent for video games) grew 40% year over year, and FIFA had over 150 million active accounts, with FIFA 22 the best-selling game in franchise history. Consolidated bookings were up 21% for the year to $7.5 billion, and the company generated $1.9 billion in operating cash flow. This fiscal year, EA expects to generate $7.9 billion to $8.1 billion in net bookings.

With a slot on sports video games and a plethora of other intellectual property (IP), EA should have an easy time growing its revenue and revenue for the next 10 years. With a lagging price-to-operating cash flow (P/OCF) of 19, now seems like a good time to pick up some stock.

2. Take-Two Interactive

Another bigger game publisher is Take-Two Interactive (TWO -0.41%). Like EA, Take-Two owns and operates some of the highest quality IP in the gaming space. Among which NBA 2K, Red Dead Redemption, Grand Theft Autoand other franchises.

In fiscal 2022, Take-Two generated approximately $3.4 billion in net bookings. This was slightly lower than in 2021, but that’s because Take-Two has bulkier product releases that could affect sales. It’s been several years since a new Read Dead Redemption or Grand Theft Auto title has been released, so it’s not surprising that last year was a financial setback.

However, Take-Two’s Rockstar studio has announced that it is officially working on the next title for the Grand Theft Auto series, which probably means it’s coming out in a year or two. With the latest game in the series becoming the best-selling video game ever, investors should be excited about what this could mean for Take-Two’s finances in the coming years.

Take-Two is currently in an interesting place. It just acquired Zynga, one of the top mobile game publishers, in a massive merger worth about $12.7 billion. The deal has already been closed and Take-Two will immediately bring exposure to the fast-growing mobile games market. Plus, with Zynga’s expertise in mobile development and monetization, there are some lucrative opportunities to expand Take-Two’s three core franchises — NBA 2K, Red Dead Redemptionand Grand Theft Auto — in the mobile space.

Currently, Post-merger Take-Two is trading at a market cap of $20.7 billion. The combined companies will generate approximately $6 billion in net bookings and expect bookings to grow 14% per year through fiscal 2024. get good returns by holding shares of Take-Two this decade.

Brett Schafer has positions in Electronic Arts and Take-Two Interactive. The Motley Fool has views in and recommends Take-Two Interactive. The Motley Fool recommends Electronic Arts and recommends the following options: Long January 2023 calls $115 on Take-Two Interactive. The Motley Fool has a disclosure policy.