Investing in the Gaming Industry
Affiliate links within this post may be commissionable.
Have you ever considered investing in the gaming industry? If not, maybe you should. The global gaming industry has grown immensely, with its market value expected to be more than $200 billion worldwide by 2023.
This incredible growth can be attributed to the rise in popularity of esports and overall digital advancement. This year, when the economy was devastatingly impacted by the pandemic, the gaming industry thrived even more due to increased player engagement during the lockdown and work-from-home measures.
As with any other investment, you will require legal services in case something goes wrong that resulted from someone else’s negligence or intentional malfeasance.
Primary Investment Vehicles
Investing in Gaming Development and Publishing Companies
These are companies that create content or games in the industry. They turn ideas into reality by creating gameplay using the latest technology.
Developers are the inventors of the games and constantly try new gaming innovations to attract more players. Popular developer companies include Activision-Blizzard with games such as Call of Duty and Overwatch, and Tencent Holdings with its famous game, League of Legends.
Investing in Hardware Companies
Some companies specialize in making gaming hardware. Video games can be played from anywhere thanks to fast Internet and smartphones.
These investment opportunities include the physical devices players use as well as other accessories. There are three primary devices used for gaming. You can invest in the companies that make this hardware.
- PC Gaming: Gamers use desktops and laptops to play video games. These companies manufacture PCs and other gaming accessories such as gaming mice, keyboards, headsets, and computer chips.
- Console Gaming: These are popular in the market. They include Microsoft’s Playstation, Sony’s Xbox, and Nintendo’s consoles.
- Mobile Gaming: Players use their smartphones to play. The biggest companies here are Apple and Google, who own the App Store and the Play Store respectively, where game developers list their apps for sale and download.
Investing in Gaming Teams
Players come together to form teams and franchises that compete in tournaments. You can invest in any of these teams, who often specialize in one game and are professionally managed.
Investing in Gaming Platform Companies
Gaming platforms organize tournaments that allow players from different parts of the world to join. Others allow players to organize their tournaments. The most popular platforms include Toornament, UMG gaming, and WorldGaming.
Investing in Community Companies
Large companies have increased their interest in investing in communities. Such companies include Enthusiast Gaming, with over 80 companies, and Amazon’s Twitch.tv, a website where players stream and engage with their fans.
As an investor, your brokerage firm and stockbroker should make decisions that are best suited to your needs and prioritize your benefits and best interests above theirs.
However, there are dishonest brokers in the industry who may take advantage of you, and you might end up suffering losses. If you feel like you’ve been taken advantage of, you can hire an investment loss lawyer to help you recover your losses.
Investment Losses You Can Sue For
Invest fraud comes in different forms. If you are a victim of negligence and fraud, you can seek legal help to sue for the loss. The most common types of investment fraud involving gaming industry investments are as follows:
- Breach of fiduciary duty
- Unauthorized trading
- Unsuitable investment recommendations
- Churning (excessive trading)
- Lack of diversification
- Selling away
- Omissions or material misrepresentations
- Unregistered trading
- Margin abuse
- Failure to supervise
Your lawyer will advise on the best action to take to make the most compelling claim for fair and full compensation for the illegitimate losses you incurred.
Gaming investment comes with its risks, but you don’t have to feel powerless against a broker who has defrauded you of your investment. An investment fraud attorney will help you recover your investment if this happens to you.