The video gaming industry has seen exponential growth in the past year. The global pandemic played a huge part in this as people had to stay home. This further led to a boom in demand and sales.
The outbreak of the virus created a boom in the home entertainment industry, which benefited both gamers and game developers. Japan is the hub for digital entertainment; the video gaming and animation industries are the biggest. In 2019 the Japanese gaming industry was worth a whopping 1.5 trillion. It is expected to reach a value of about 1.8 trillion yen by 2026.
As the COVID-19 crisis gets worse globally, the stock market has begun to have some setbacks due to a decrease in work forces. Gaming companies have experienced shortages of games being developed.
A number of the most popular gaming companies in Japan have suffered considerably. However, those who have been to own a piece of their favorite games are not giving up. A new generation of gamers are emerging.
The pandemic has shown a new future for sports. This is a future where all the activity takes place online, on a screen and the rules have changed.
Investment Opportunities
Investors have the opportunity to access the vast potential of Japanese video gaming, by tapping into the market. Eligible stocks are listed on the Tokyo Stock Exchange or the JASDAQ Securities Exchange. These companies are usually incorporated in Japan.
Nintendo Co. Ltd. is a Japanese based company. It specializes in consumer electronics products and video games. Nintendo Co. Ltd has game consoles including Nintendo Wii and Nintendo DS. Nintendo not only develops portable game machines, playing cards as well software, but they also manufacture them.
Top Video Game Stocks
The fastest growing video game stocks in Japan are the video games that are ranked using a growth model. The growth model uses a 50/50 method to calculate growth and takes into account the most recent quarterly year-on-year percentage revenue growth. The company's quarterly year-on-year earnings per share growth are also taken into account.
The list below comprises video game stocks with the lowest 12 months trailing price-to- earnings ratio.
- Nintendo Co. Ltd. (NTDOY) SciPlay Corp.
- Activision Blizzard Inc. (ATVI)
Below are the fastest growing video game stocks:
- Avid Technology Inc.
- Enthusiast Gaming Holdings Inc.
- Sea Ltd.
Sciplay Corp develops and publishes digital games that can be used on mobile as well as web platforms. Sciplay products include casino games and bingo games. Their product offering includes Jackpot Party Casino and Hot Shot casino but they still fall a little short when compared to online casinos (known locally as オンラインカジノ) and their revenues who are already operating in the Japanese market.
Activision Blizzard Inc. is involved with development, publishes and distributes entertainment content as well as services for video game consoles. They also distribute personal computers and mobile devices. World of Witchcraft and Call of Duty are some of their more prominent titles.
Another company that is a Japanese owned business is Capcom. Capcom has produced really great sales and earnings have increased. Capcom has been around for a long time and have created some memorable gaming experiences. Mega Man and Street Fighter belong to Capcom. Capcom specialize in development and publishing.
Great Value Video Game Stocks:
Nintendo Co. Ltd. (NTDOY)
Price $61.26
Market Cap ($B) 58.4
12-month trailing price-to-earnings 13.3
Sciplay Corp. (SCPL)
Price $18.95
Market Cap ($B) 0.5
12-month trailing price-to-earnings 22.0
Video game stocks gained significant momentum and delivered high returns over the last 12 months. What started off as a way for players to show off their gaming skills; transitioned to individuals wanting to own a game. This is now a multi-billion dollar market.
