Investments in Video Games


In the past, video games were found in an arcade machine that involved floating dots. The gaming industry has grown globally and earned $ 40 billion revenues in 2007.The hardware industry is expected to have a revenue increase in future through the XBOX360 introduction which has a life span of 5 years. The users of games have gained interactiveness and more experience. Games occupy almost 35 % of the mobile App usage in Android phones and 65 % in tablets.

The industry of video games is flourishing with great potential in its growth. The rise in the number of mobile and internet users have led to their growth in prospective consumers. At the year 2012, the association of entertainment and software said that that in developed countries like Us, the gaming industry has gone forward as pertaining to worldwide sales of video games, which has been sour to billions.

Most people play games in everyday basis and spend more money as compared to other forms of media where the pressure tends to be down. This was said by Colin Sebastian, the senior research analyst. On the same note, Robert W also said that video games need to be at the top list for the investors. The industry seems to be complex than it is on the surface.

Video gaming stocks refers to the traders who are long term in the video games industry. In this trade, we have investors and speculatrors.Speculators focus more on price movements which are short term, while investors buy businesses after research in understanding on their operations. The following are the tips to make you an investor who is better:

  • You need to check your emotions.
  • You need a temperamental control to get other people to trouble into investing. Buffet, the chairman of Berkshire Hathaway said that a focus in share price creates a feeling of doing something when no action is guaranteed.
  • Defining your time frame.
  • You need to set financial goals that you need to achieve. Identify the investing horizon time and also assessing flexibility of your plans.
  • Do your research well.
  • You need to look at the available publicly information on the company and calculate the company’s growth rate
  • Nailing down the investing thesis.
  • You need to put the two questions in mind-why should you buy the company? And what would make you sell the company?
  • Build up your position.
  • At this point you need to slap down you cash wad.
  • When planning to invest in video games, the following should be in your mind;
  • Virtual reality should be a long term play.
  • As virtual reality gears up in debuting-which is the latest, the attention of companies who are surrounding needs to be more such as Facebook, Sony and HTC.The offer an experience which is different and they may be priced down as analysts say.
  • Mobiles are not what you think.
  • The publishers of games with the focus on the mobile space haven’t been heroes despite the groth in mobiles. Electronic arts are one of the publishers who are large with mobile divisions which are strong. Analysts say that tablets have provided complexibility which is more on gaming as compared to cellphones.
  • Long shots are losers of money.

It is difficult to find a company that has a verge of taking off. Video game companies are owned privately and are small.

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