The video game business is a huge, fast-growing industry with a lot of room for expansion.
The top companies in the sector have benefitted from the tremendous spike in demand caused by COVID-19, and their stock performance demonstrates that video gaming is a robust and steadily rising industry. Even though social distance and work-from-home policies brought new obstacles for game producers, player engagement is on the rise.
Companies that continue to adapt to players’ expectations and shape their preferences for interactive electronic entertainment are well positioned to offer excellent shareholder returns. The best stocks to buy now as long-term investments include Capcom (OTC:CCOEF), Zynga (NASDAQ:ZNGA), Take-Two Interactive (NASDAQ:TTWO), Activision Blizzard (NASDAQ:ATVI), and Electronic Arts (NASDAQ:EA).
Let’s take a closer look at each of these companies:
Capcom
Capcom (OTC:CCOEF), a video game developer and publisher, is thriving owing to blockbuster releases that have bolstered its major brands and resulted in excellent sales and profits growth. Mega Man, Devil May Cry, and Street Fighter are among the company’s properties, in addition to the Resident Evil and Monster Hunter franchises. Capcom also has a sizable back catalog of lesser-known but revered vintage titles.
There are several reasons to admire this long-running Japanese corporation, which has dominated the video game industry for decades and produced some of the most unforgettable gaming experiences ever.
Take-Two Interactive
The value of Take-Two Interactive (NASDAQ:TTWO) has risen quickly as a result of excellent performances by its key brands. Grand Theft Auto is the company’s most prominent and profitable product, as well as one of the most profitable franchises in all of gaming entertainment. Take-Two’s Red Dead Redemption series is a hit, and its NBA 2K basketball series is the best-selling in the category. In addition, the firm owns a number of minor series and other development programs that contribute to its expansion.
Zynga
Zynga (NASDAQ:ZNGA) is a mobile video game developer and publisher that started with Facebook-based browser games. The firm suffered at first as the popularity of mobile games grew, but it was able to effectively shift its business. As a consequence of its ability to monetise its key brands, Zynga is once again increasing its sales and profitability.
Electronic Arts
Electronic Arts (NASDAQ:EA), which was founded in 1982, has played and continues to play a pivotal role in the evolution of the interactive entertainment industry. It is the second-largest video game business in terms of revenue, and it dominates the sports game subgenre.
The pioneering game publisher has a library of high-profile original brands, including The Sims, Apex Legends, and Battlefield, as well as iconic licensed titles like Madden NFL and FIFA. Electronic Arts’ acquisition of Glu Mobile in June 2021 means the company is now concentrating its efforts on mobile gaming.
Activision Blizzard
Activision Blizzard (NASDAQ:ATVI) is the most profitable video game software corporation, with three key divisions. Activision focuses on building console systems, while Blizzard has created some of the largest blockbusters in PC gaming. King Digital creates and publishes primarily mobile games, Activision is focused on developing console platforms, and Blizzard has generated some of the biggest hits in PC gaming. Activision Blizzard’s video game properties are among the most valuable in the industry, and the firm both profits from and drives gaming’s growth.
