Gaming and eSports to Top $300 Billion Annually, but Are Investors Missing the Boat
LOS ANGELES, Sept. 23, 2019 /PRNewswire/ — USA News Group – The gaming and eSports industry is on track for $300 billion per year revenue by 2025 and continuing to grow in double digits. But investors seem to be missing the boat as this sector takes flight.
That comes from leading portfolio managers looking at the industry and its huge potential. They point to the fact that investors are “newbs” in this space and lack the experience when it comes to buying into the growing market.
The eGaming industry’s rapid growth is being driven by exciting innovations such as cloud gaming and online interaction. Companies looking to take the eSports category to the next level include Activision Blizzard Inc. (ATVI), Take-Two (TTWO), and NVidia (NVDA), who all have major investments in the development end of the business.
Other companies are positioning themselves to take advantage of the potential for massive ad revenue derived from the sector. Versus Systems Inc. has already put itself front and center in the esports segment. Versus Systems (CSE:VS) (VRSSF) focuses on advertising and development of in-game promotion and prizing tools. The emerging Vancouver-based company is seeing an influx of gaming companies looking to use their system to tap eSports and eGaming ad revenue.
A Market That Just Can’t Be Ignored
It appears that the eSports trend is more than just bubble. That’s what a prominent portfolio manager discovered at one event in Toronto, Canada. Nick Mersch says it was the giant line for the League of Legends’ semi-finals outside Toronto’s giant Scotiabank Arena that convinced him of the massive opportunity being ignored by many investors.