Why should we invest on the game market?

Why should you invest on the game market? This article will reveal the reasons why many wealthy individuals choose to invest in the gaming market at this time. Are there more opportunities or risks? 

Investing on the game market at this time is a prudent and strategic decision for the future. To clarify this, let’s analyze the following three main reasons:

Game industry declining trend

First and foremost, we must acknowledge that the game market is currently experiencing a downturn compared to before. Specifically, the global economy is experiencing a severe economic crisis, which has a significant impact on the gaming industry.

According to Newzoo statistics, the market share of the gaming industry in 2022 will decrease by 5.1% compared with 2021. In 2023, the gaming industry’s market share will grow again, but only by about 1% compared to 2022.

Faced with this reality, many investment experts believe that the declining trend in the game industry is an excellent opportunity for us to invest in the game market. During a recession, both the costs of hiring employees and operating a business tend to be lower. Moreover, this is a golden opportunity for us to prepare everything for our game company. 

As you may know, according to the laws of the economy, the period following a recession is the beginning of growth. When the market undergoes a transition and starts to develop again, our game company will be ready to reap profits. Clearly, in difficulties, there are always opportunities.

Less money for ads

Another reason to consider investing in the game market is the opportunity for reduced advertising costs. Specifically, advertisers have plans to support game developers by reducing advertising expenses. This means we will spend less money on advertising. This is an advantage that we never found during the booming stage of the game industry.

This allows game developers to use their capital more efficiently. It is no longer like the previous stage of the game market where all the money is invested in advertising. In this way, we reduce financial pressure and create conditions for developing higher quality games.

Furthermore, when every company is facing difficulties, competition in advertising also decreases. Of course, we can seize the opportunity to achieve better advertising efficiency and attract customers without having to invest too much money.

Time to invest

The most suitable time to invest on the game market is right now. Regardless of market conditions, the gaming industry remains the most valuable sector in the entertainment industry. According to Newzoo’s forecast, the market capitalization of the gaming industry is projected to reach $286.8 billion in 2025, an increase of $178 billion compared to 2021.

In addition, the gaming market is expected to grow at a compound annual growth rate of 12.8% from 2023 to 2030. Of course, we cannot deny the huge growth potential of the gaming industry in the near future.

Based on the above data and predictions, investing in the gaming market at this time is a wise decision. However, as with any area of ​​investment, thorough research is required. Additionally, assessing risks and understanding the market are critical to ensuring smooth and successful investment decisions.

FAQs 

See more questions related to investing in the game market right below.

Is gaming a fast-growing market?

Yes. The gaming industry is one of the fastest-growing segments in the entertainment business. Certainly, in the future, the development of gaming will surpass significantly. By 2027, it is projected that the market will reach $473 billion. Currently, many investment experts are pouring capital into this market.

Is it good to invest in games?

If you are someone looking to invest in a rapidly growing market, investing in games is a wise choice. Additionally, the gaming market also promises sustainable development in the long term.

Why is gaming so profitable?

In general, the gaming industry generates high profits for several reasons, such as a large player base. Additionally, game developers also generate profits through various means, such as advertising, subscription services, and selling in-game items.

Are eSports a good investment? 

In recent times, Esports has emerged as one of the rapidly growing sectors. According to investor assessments, it is a field that can yield substantial profits. However, Esports is still relatively new, which comes with its own set of significant risks that investors may encounter. Overall, no investment is 100% guaranteed, so it is crucial to conduct thorough research before getting started.

 

Above are three reasons why you should invest in the game market. Based on this, we can see that the most suitable time for investment is now. I hope these analyses will be helpful to you on your investment journey in the gaming industry. Thank you for reading!