Investors are flocking to video gaming, but be wary of esports, SPACs, advisors say

May 17, 2021

Investors are flooding the video game market with money at a record rate during a pandemic-inspired boom. Some, unfamiliar with the gaming world and eager to follow suit, may be tempted by impressive numbers and projected growth, rather than the core product in which they’re investing. In the modern video game industry, there are crucial distinctions between various properties that should guide where they sink their money.

For example, outsiders to gaming and gaming culture are often confused about esports and how it fits into gaming as a whole. The distinction is important; it’s the difference between investing in an established, soaring industry and a nascent one still looking for secure footholds on its ascent.

Start here: While all esports games are video games, not all video games are considered esports. Perhaps an easier analogy is that all racing cars are cars, but not all cars are built for racing. While cars and video games are accessible to most people, racecars and esports are left to the professionals and aspiring amateurs, a much smaller group of folks.

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