by Ian Cooper
Pay close attention to the global video game market.
For one, according to analysts at Newzoo, the global gaming market could generate up to $187.7 billion just this year. For one, highly anticipated titles have been released this year, including Final Fantasy 16, Spider-Man 2, Super Mario Bros. Wonder, as noted by GameIndustry.biz. Two, even more are expected to hit the shelves in 2024, which could include the next much-anticipated Grand Theft Auto.
Take-Two Interactive (TTWO)
CEO Strauss Zelnick hinted at a possible release date for Grand Theft Auto VI. “We leave the announcement of upcoming titles to our labels and we have said we have a very robust pipeline of titles and we have a great outlook for fiscal 2025 where we’ve reiterated our belief that we’ll generate about $8 billion in net bookings,” he said, as quoted by HypeBeast.
That answer is the best hint yet on the potential release date. That’s because GTA is one of the very few TTWO games that can generate sales anywhere near $8 billion. Plus, analysts at Barclays just raised their price target on TTWO to $161 from $160.
Electronic Arts (EA)
There’s also Electronic Arts (EA), which has become technically oversold on disappointing bookings. However, bookings were still up 21% year over year thanks to the release of Star Wars Jedi: Survivor. Two, the company is set to release even more hotly anticipated game titles, which should boost net bookings. And three, the company raised its forecasts. It now expects to see second quarter revenues of $1.82 billion to $1.92 billion, and for EPS to come in between $1.7 billion and $1.8 billion, which are higher than the prior quarter.
Roundhill Video Games ETF (NERD)
Or, if you just want to diversify among most of the top video game stocks, at a low cost, there’s always an ETF. With an expense ratio of 0.50%, the Roundhill Video Games ETF (NERD) offers exposure to 37 video game stocks in an industry that could be worth $211 billion by 2025. Some of its top holdings include Nintendo, Electronic Arts, Take-Two Interactive, Roblox Corp., Unity Software, and Konami Group to name a few.