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The launch of immersive and realistic games, esports competitions on various platforms, and efficient gaming consoles have helped the video game industry generate significant revenues and expand its monthly active user base since the onset of the COVID-19 pandemic, with limited outdoor entertainment and recreation activities acting as a catalyst. While the ongoing vaccination drive and availability of various outdoor activities were expected to slow down the industry’s growth this year, the efforts of video game makers to provide captivating content, powerful graphics, and advanced software helped the industry generate $4.39 billion in sales in October 2021, up 16% from the prior-year period.
Also, a rising interest in metaverse gaming further enhances the industry’s long-term growth prospects. Investor optimism in this space is evident in the Wedbush ETFMG Video Game Tech ETF’s (GAMR) 4.7% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 3.6% returns. The global video game market is expected to grow at a 9.7% CAGR to $225.10 billion by 2025. So, both RBLX and ATVI should benefit.
