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INVSTR INSIGHT : THE GAMES INDUSTRY

by | May 16, 2016

The global market for video games has been increasing since it first began in the early ’80s. Always a hit driven industry, do games companies large and small represent a worthwhile investment opportunity?

Video Transcript

LEA JAKOBIAK (Reporter, invstr):  Video games have come a really long way since the likes of pac-man.

MARK FAULKNER (Game Manager, invstr): Generally when we talk about the games industry we do of course mean video games but it’s not your only option. There are smaller providers, there are board game companies, there are other games companies that are working in this space.

LEA JAKOBIAK (Reporter, invstr): The games industry is in fact more lucrative than the film industry. It now generates over $100 billion dollars in revenue.

IAN LIVINGSTONE (Gaming Entrepreneur):  If you hit it right, you hit it very right. Companies like supercell are generating seven million dollars a day, they’ve only got 180 employees, their global revenue is over $3 billion dollars a  share. So if you look at the revenue per employee these are incredible numbers.

STUART MILES (Tech Expert): I think it’s a really exciting time for the games industry at the  moment because there’s lots of avenues for huge amounts of potential. On the one side we’ve got virtual reality and that’s only just getting started with the launch of Oculus Rift and HTC Vive. We’ve then got PlayStation VR which I think will be the biggest of those three devices. But also we’re seeing on the mobile side of things you know a big uptake of mobile gaming.

MARK FAULKNER (Game Manager, invstr): The mobile industry is only going to increase in terms of its volume. You know we still haven’t reached 100% penetration of mobile handsets in the world market.

ANDY PAYNE (Founder of ApplyNation): The western world is going through a revitalization and entertainment is everything. So of course the global players activists are literally our take two Ubisoft. Those guys have got huge portfolios they’re invested across the piece, they know what they’re doing and they make a lot of blockbusters.

LEA JAKOBIAK (Reporter, invstr): But despite countless success stories there are risks.

ANDY PAYNE (Founder of ApplyNation):  The risks are are that it is entertainment, that it is competing for time with other entertainment and leisure industries which are like film, TV’s  have gone through a renaissance.

IAN CHAMBERS (CEO, Mind Candy): As the market develops it’s becoming increasingly crowded and also constantly changing in terms of monetization models, platforms, and so like any investment there’s risk but they’re just actually leads to many more opportunities.

LEA JAKOBIAK (Reporter, invstr): If gaming tickles your fancy crowdfunding is a new way to get involved.

DAN PEARSON (Editor, GameIndustry.biz): There’s also a new system called Fig which I believe is open to people worldwide. It’s a bit like Kickstarter. You go to the site, you look at  the game campaign, you can invest a certain amount, you get a sliding scale which shows at what point you would start seeing a return on that investment.

LEA JAKOBIAK (Reporter, invstr): And you can find out all the information you need on the games industry in the invstr app.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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