The gaming industry has shown tremendous resilience over the course of 2020. Here’s why investing in gaming could be worth it.
Gaming’s Constant Relevance
If ever there was an electronic constant or presence, at least since the 1970s, then digital gaming would be it. Gaming has walked a long path, and over the years it’s seen companies come and go, while others have been absorbed by the competition. Today the Atari 2600 is viewed as somewhat of a collectors item if you can get your hands on a wood-finished original, while the video game crash of 1983 is well documented in the annals of of gaming history. 1985 became a significant turning point for the industry after the dust of the 83’ crash had settled; this was the year in which Nintendo launched the NES (Nintendo Entertainment System) in the US market– a machine that not only raked in gamers by the numbers, but one that was used to define the many games production parameters that are still adhered to today.
1989 saw SEGA unleash the Genesis/Mega Drive, the very first commercially successful 16-bit machine, and one that gave Nintendo’s SuperNES a serious run for its money. The mid 1990s saw some serious changes; Sony threw its hat into the ring with the PlayStation One, a machine that obliterated SEGA’s Saturn and established Sony as a formidable player in the industry. Nintendo fought back with the release of its N64 and as usual went against the grain by using cartridges despite CD’s cheaper production costs. Atari came out swinging with the Jaguar 64, a seriously vicious piece of hardware that was regrettably plagued by hardware bugs and a lack of develop support tools.
The 90s closed out with the Dreamcast, SEGA’s last and very prescient console. The company would not make a console again and instead pursued making games for various machines and platforms. Atari also ducked out of the console race, thus making way for Microsoft’s Xbox in the early 2000’s.
Why investing could be worth it
The big three – Nintendo, Sony and Microsoft – are the console leaders and have held on to their positions of dominance for a lot longer than any of the competition of the prior formative years. Together, they’ve written their own tickets and have allowed for numerous gaming development and software houses to emerge and create games for their consoles. Under the challenging conditions of 2020 and what looks to continue through 2021, gaming has stood it’s grounds. Social distancing and work-from-home set-ups have not really affected the industry and in fact has only showcased gaming as a resilient one.
For this and many reasons, stocks in gaming are certainly worth investing in, and if that’s too much to ask financially, then speculation might be a better alternative. Gaming companies driving the industry forward under the current climate of living are Nintendo, Avid Technology Inc., Activision Blizzard Inc., Capcom, Take Two Interactive, Tencent Holdings and Electronic Arts. This not the full deck of cards, just the face cards, so to speak. These companies could very well be worth your while if you’re looking to potentially profit from online trading, specifically CFD (Contract For Difference) trading, a low-cost entry point into the world of shares and trading.
With CDF trading, you’re speculating on whether the share price of these gaming companies will rise, fall, or be sitting at a specific position within a specific span of time. The allotment of time in CDF trading means that outcomes aren’t dependent on weeks, months or years, but on something that could be lucrative within minutes, hours or days. This means that as opposed to pumping in wads of cash into Nintendo or Capcom, you’re instead going to observe the share price and then make a call as where it might end up. In some ways, CDF trading could be seen as a game, except it’s one that could yield real profits.