How do Game Companies Perform in the Stock Market?

It’s extremely hard not to fall, victims of the gaming industry and their ransacking efforts because every week there are countless new game launching on a variety of platforms and genres. Over the past few years, every major company has been continuously raising the bar when it comes to development, graphics, performance, AI interactions, storytelling, difficulty, and several other variables which most avid gamers would deem as fundamental towards building their overall product review. After all, marketing campaigns and social media are great but that very first gaming impression will make or break the fate of those products.

Most major game companies are worth billions, but how exactly do they fare in the stock market and how relevant are these new releases to their shares value? Here are a top eight of the most powerful tycoons in the industry, as listed in value at the beginning of this month, March 2016. Note: The list will not include Sony and Microsoft due to the fact that most of their net worth are not related to the gaming industry.

  1. Sega Sammy Holdings Inc.:

Nostalgia kicks in just to think about Sonic the Hedgehog. Sega merged with Sammy in 2004, their market cap is at USD 2.83 bn and their shares are valued at USD 2.62.

  1. Square Enix Holdings Co., Ltd.:

Not a highly familiar name as a company, but they are the creators of the Final Fantasy saga, along with Kingdom Hearts and several other popular games. Their estimated market cap is USD 2.87 bn and their shares are valued at USD 25.21.

  1. Ubisoft Entertainment S.A.:

This French company brought us the Assassin’s Creed saga, along with classics like Prince of Persia as well. Total market cap is at USD 3.36 bn and shares are valued at USD 29.34.

  1. Konami Holding Corp.:

The creators of successful sagas like Metal Gear Solid and Pro Evolution Soccer (PES). Their market cap is of USD 3.55 bn and their shares average at USD 25.40.

  1. BANDAI NAMCO Holdings Inc.:

Naruto, Dragon Ball, Dark Souls, and many others were born in BANDAI NAMCO. Market cap is estimated at USD 4.41 bn and average share value at USD 24.95.

  1. Nintendo Co. Ltd.:

The immensely popular franchises of Super Mario and Pokemon were created by Nintendo. Their market cap is at USD 19.82 bn and their shares are valued at USD 17.52.

  1. Electronic Arts Inc.:

They brought us FIFA and Battlefield amongst other popular games. Their market cap is of USD 20.44 and their shares value stands at USD 64.80.

  1. Activision Blizzard Inc.:

Creators of the Call of Duty saga, their market cap reaches USD 23.53 bn and their shares are averaging USD 31.52.

There is one thing to consider. The overall net worth of a company or their total market capitalization does not necessarily imply these are the most successful gaming companies, it just states the amount of capital they have in the open market.

These values are always fluctuating due to the very nature of the market, but some events can trigger catastrophic results. Nintendo’s decision to use cartridges instead of compact discs on their Nintendo 64 consoles, the XBOX 360’s rushed release leading to the Red Ring of Death, and the incredibly embarrassing 2006 E3 PlayStation 3 Press Conference bode terrible news for these companies, as their shares plummeted, at least momentarily.

All of this could be great news, however, for the most intrepid gamers who are also willing to invest in the stock market. Keeping a heads-up on press releases, games, consoles, and like stated above, the very first impression a new product is making on the market will provide invaluable information to predict how their shares will behave.

And the best part is, due to the increased popularity of margin trading online platforms like CMC Markets, gamers can quickly become investors and do precisely that without having to risk huge amounts of capital in doing so.

Sanford K Kratzer