Courtesy of Dualshockers

Video games or electronic games are virtually software designed to allow interaction between user interface and gamer to generate visual feedback in a 2 or 3 dimension video display.  They are a mode of entertainment that has grown tremendously and get more and more sophisticated as technology advances. Video games have now become a leisure activity for most of the young people across the world. They came from boxes where one had to visit an arcade to play to date, where they can be played from a mobile device, Xbox or PlayStation. There are also online games that allow players to interact as they play.

As the popularity of video games grows, more and more people spend a lot of time on them which leaves the question with all the time being consumed, how do they affect the economy. In 2019, the gaming market report published that there were over 2.5 billion gamers across the world. The estimated spending rate of these people was expected to hit $152.1 billion on games in 2019. This translated to a great contribution towards various economies. Below is a chart of growth rates of the gaming industry across the globe.

2019 Global Games Market
2019 Global Games Market

China and U.S.A. were reported as the countries leading in gaming as they recorded the highest growth. The UK economy recorded great contributions from the gaming industry between the year 2015 to 2019.  Let us look at how gaming affected several economies.

It is evident the gaming industry is a major contributor to the growth in economies. The stock trading of gaming companies has been seen to rise incredibly in the last few years. Online forex brokers such as ForexTime, have opened avenues for their clients to start trading in gaming company stocks. Traders should take up such opportunities and gain from this growing industry.

 

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The United Kingdom

The UK gaming audience in 2018 was estimated to be 2.2 billion to 2.6 billion people. The gaming industry commanded an income of $137.9 billion in the year 2018. According to the growth rate, the revenue generated by the gaming industry is anticipated to grow by $43 billion by the year 2021. This means that the gaming industry has a major positive effect on the UK’s economy.

The gaming industry provided a full-time equivalent (FTE) in jobs to 47,620 people in the year 2016. This year, the Gross value-added to the economy (GVA) by the industry was £2.87bn. Gaming companies traded big time in the stock markets between 2015 and 2019.

USA

In 2018, 211.2 million people in America are gamers on at least one type of device. This constituted seventy percent of the total population. Out of these, 72% are older than 18 years. Women constituted 31% of these making the average gaming age in the US around 35 years.

In 2019, the US generated $36.9 billion in gaming revenue supporting over 1.8 million jobs across the nation. The taxes which are a direct channel into the economy were $10.7 billion indicating a huge contribution to the strong economy.

China

In the year 2018, China had 620 million gamers who spend over $38 billion generating $138 billion in revenue from the gaming industry. China recorded the highest growth in gaming revenue in 2019 recording a $35.8 billion growth. 

The revenue generated in 2020 so far is $26.1 million in just two months. This is expected to reflect in their economy as revenue is expected to gain an annual growth rate of 2.2% between 2020 – 2024.

Global video games market revenue by game type
Courtesy of Global Data

Why Invest in Gaming Industry Stocks?

It is one of the fastest-growing industries in the world. This means the investment opportunities in the industry are limitless. More people continue to choose video gaming as their choice of leisure and entertainment meaning they will continue to spend more thus growth of the companies increases revenue. Expansion into international markets with all statistical predictions pointing to major growth in revenue and payoff of gaming company stocks.

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