According to market research firm Grand View Research, the global video game industry was worth $195.6 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 12.9% through 2030.
This is because the games we play become more complex, more realistic and more immersive every year.
The gaming boom is not fading anytime soon, with online gaming communities as pivotal social centers, professional esports as a multibillion-dollar industry, and streaming services as another multi-billion dollar sub-sector.
One industry that has seen rapid growth in recent years is mobile gaming.
Check out my list of the six best video game stocks to buy in 2022.
Capcom
Capcom, a video game developer and publisher, is thriving thanks to its recent releases, which have bolstered its flagship franchises and led to significant increases in sales and profits. Other Capcom properties include Resident Evil, Monster Hunter, Mega Man, Devil May Cry, and Street Fighter. In addition to their well-known franchises, Capcom also has an extensive collection of vintage titles that are mostly unknown outside of gaming circles.
This company has been in business for decades and makes some of the most beloved games. Since its release in May 2021, more than 5 million copies of Capcom’s Resident Evil Village have been sold.
Capcom plans to return approximately 30% of its annual income to shareholders through dividend payments. The video game business is prone to swings in profitability, but Capcom’s leadership has made it clear that they value returning money to investors.
Sohu.com Ltd.
One of China’s most popular online resources, Sohu.com is a media giant with a wide variety of news, entertainment and social networking sites under its control. It is versatile, including a news app, a mobile news portal, a video website, and a gaming hub.
On May 16, the company announced financial results for the first quarter of fiscal year 2022. Unfortunately, annual sales declined, leading to a 90% decline in net income (YOY). Both declining brand advertising and online gaming revenue played a role in the decline.
Nintendo
When it comes to home gaming systems, Nintendo was there first. In the 1980s, a Japanese company called Nintendo released its Nintendo Entertainment System, followed by a slew of similarly successful consoles. Since its release, more than 100 million copies of Nintendo’s Switch video game system have been sold worldwide.
Nintendo is known for developing some of the industry’s most played games on its platforms. Endless sequels and hundreds of millions of sales come from iconic brands such as Mario, Zelda, Super Smash Bros., Animal Crossing and Pokemon.
One of the best video game stocks to hold is Nintendo because of how well it has weathered the many shifts in the industry over the decades.
Electronic Arts Inc.
Electronic Arts has pioneered the development of the video game industry since its founding in 1982. It is the industry leader in sports themed video games and the second largest video game publisher overall.
In addition to groundbreaking original properties such as The Sims, Apex Legends and Battlefield, the game publisher also owns well-known licensed titles such as Madden NFL and FIFA. The purchase of Glu Mobile by Electronic Arts in June 2021 signals the company’s intent to expand into the mobile gaming market.
Take-Two Interactive
Take-Two Interactive’s valuation has skyrocketed thanks to the success of the company’s staple series. The Grand Theft Auto franchise is the company’s crown jewel and one of the most lucrative in interactive media history. Additionally, take-basketball Two’s games, the NBA 2K series, are industry leaders, while the company’s western series, Red Dead Redemption, is receiving positive reviews. In addition, the company owns several additional development efforts and small series that contribute to the growth of the company.
Despite the challenges and demands of making AAA video games, the teams behind the Take flagship Two series have produced fantastic entries time and again in their respective franchises. Take-Two is an expert at making its customers happy, generating a lot of interest and money spent in the game. In addition, the company’s solid financial position allows it to actively seek out new growth prospects in markets such as mobile gaming and esports.
In a $12.7 billion transaction, gaming giant Take-Two buys social and mobile gaming company Zynga (NASDAQ: ZNGA). By including Zynga in its business, it will gain access to several successful mobile properties and benefit from Zynga’s experience developing free-to-play games.
NetEase Inc.
NetEase is a Chinese IT company that makes client software for mobile and desktop video games. The company provides a range of commercial goods in addition to its intelligent learning services. On May 24, NetEase announced its financial results for the first quarter of 2022.
Despite a year-over-year increase in net sales of 14.8%, the company’s shareholders’ net income declined 1.0%. According to NetEase, the revenue growth was mainly due to the success of the online gaming division.
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