Gaming rules the entertainment industry, so why aren’t investors showing up?

Looking back every day at the people around, people can see that the majority are increasingly spending their free time on portable devices. Average estimates have shown that the growth of people who find entertainment on their smartphones and use them constantly reaches 15 to 20 percent annually. And first of all, this is due to gaming, which has reached its peak in the field of entertainment on all possible platforms.

Gaming has reached such heights thanks to the development of hardware and software, which allows developers to create games with a cinematic image and many different in-game functions that bring an unprecedented variety for entertainment. This clarifies why so many people play games in their spare time and also allows one to imagine how much profit the developers are making. And for investors, this is the ideal way to conclude profitable deals.

However, investors do not pay as much attention to the lion’s share of gaming in the entertainment market, preferring more traditional investments. By taking a peek at the jkr official site it is possible to see strong support for gaming from this investment group. But, unfortunately, such cases are isolated. And in this regard, the question arises: why, with such a strong growth of gaming on the market, investors do not show up? What exactly contributes to giving preference to other areas?

For what reasons investors do not choose gaming?

If it is started to delve deeper into the reasons why gaming is not preferable for investment, in the first place it can be associated with certain risks. At the moment, dozens of new games appear in application markets and digital platforms every day, but most of them go unnoticed since they did not have a sufficiently good idea, implementation, or promotion to the masses. Naturally, such chances of incurring a loss seem daunting and, in this case, it is much easier to give preference to a different product.

Secondly, investors have not yet fully developed an understanding that the game is a long-term product, and is capable of making a profit even after the first weeks of sale, such as GTA 5, which has remained a popular and profitable project since 2013. In addition, the huge number of online games that are based on a free distribution model with the ability to make in-game transactions also easily cover all costs and can remain profitable in the long term.

In addition, investors are less willing to buy shares from gaming publishers. The reason is also quite simple: the rise in stock prices depends on the regularity of new games being released and the gaming community’s reaction to new projects or their updates. For example, if the game was not fully brought into a working form or the update brought a critical error, this can harm the publisher, and, accordingly, will affect the growth of the share price.

Why gaming is a great investment option?

Nevertheless, if investors cast aside all prejudices and evaluate the gaming industry in more detail in terms of profitability, then you can see that this is a real gold mine. And there are many reasons to call gaming that way.

As previously mentioned, games with in-app purchases, even if distributed free of charge, bring in colossal sums a year. And that’s not even mentioning the fact that some publishers make these games paid or on a monthly subscription basis.

Also in the field of gaming, more and more professionals appear in the field of coding and scripting, as well as players who have reached a high level of skill and enter the professional arena. Sponsoring and helping to promote such people can also bring profit both from the created project and from the player’s performances.

Andrew Mcaffrey
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