With 2010 sales exceeding $18.5 billion, the video game industry is no longer considered a light weight in the entertainment industry. Some video game titles are so popular that their sales eclipse most Hollywood blockbusters. For example, in just 6 short weeks, Call of Duty: Black Ops had sales exceeding $1 billion.

Vdeo games have traditionally been discretionary expenditures, so the recent economic downturn has negatively affected industry sales. But as the economy improves, video game sales should bounce back quite well.

Furthermore, it is fair to say that while video games had once been the exclusive realm of kids and teens, the popularity of casual gaming (as a result of Nintendo's Wii and DS consoles) has caused video games to break through barriers to become entertainment for the whole family; they are even recommended as activity for seniors.

IN PICTURES: 6 Simple Steps To $1 Million

How To Invest in Video Games

Unfortunately, there is no ETF that captures the video game industry. Investors looking for a position involving video games will either need to pick a video game retailer (such as Bestbuy or Gamestop), a video game console maker (such as Microsoft (Nasdaq:MSFT), Sony (NYSE:SNE) or Nintendo) or a video game publisher (such as Activision Blizzard (NASDAQ:ATVI) or Electronic Arts).

Here are 5 video game stocks to look into:

Company Market Cap YTD % Return
Take-Two Interactive Software (Nasdaq:TTWO) 1.30B +24.35%
Electronic Arts Inc. (Nasdaq:ERTS) 6.06B +10.71%
Nintendo Co., LTD (OTC:NTDOY) 40.43B +0.44%
Best Buy Co., Inc. (NYSE:BBY) 13.35B -1.25%
GameStop Corp. (NYSE:GME) 3.09B -10.75%

Bottom Line

If you believe that the future growth of the video games industry will take your portfolio to the next level, consider taking a look at the 5 stocks mentioned above! (For related reading, see Power Up Your Portfolio With Video Game Stocks)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Stock Analysis

    Net Neutrality: Pros and Cons

    The fight over net neutrality has become an amazing spectacle. But at its core, it's yet another skirmish in cable television's war to remain relevant.
  2. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  3. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  4. Mutual Funds & ETFs

    ETF Analysis: ProShares Large Cap Core Plus

    Learn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares Core Growth Allocation

    Find out about the iShares Core Growth Allocation Fund, and learn detailed information about its characteristics, suitability and recommendations.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI USA Minimum Volatility

    Learn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
  7. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  8. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  9. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
  10. Mutual Funds & ETFs

    ETF Analysis: Schwab US Broad Market

    Take an in-depth look at the Schwab U.S. Broad Market ETF, an incredibly low-cost fund based on a wide selection of the U.S. equity market.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  3. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  4. PT (Perseroan Terbatas)

    An acronym for Perseroan Terbatas, which is Limited Liability ...
  5. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
  6. BHD (Berhad)

    The suffix Bhd. is an abbreviation of a Malay word "berhad," ...
RELATED FAQS
  1. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  4. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  5. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
  6. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!