For the past several decades, the gaming industry has grown from a small segment that only a handful of enthusiasts supported to a multi-billion dollar global industry. Things have come a long way since Tennis for Two, often considered to be the first video game in the world. Today, we have a gaming industry driven by artificial intelligence (AI) and virtual reality.

The growth of this industry makes for a lucrative avenue for investors, and with good reason. With an estimated revenue of almost $455 billion, it may not be the largest industry in the world, but it can bring profits for investors. If you want to get in on the action and invest in gaming stocks, today’s list is here to help. 

The prices and data you’ll see on this list are from November 25th, and 28th.

Capcom Co., Ltd.

This company needs no introduction. Capcom (CCOEY) has been on the market for well over four decades, bringing us popular games such as Resident Evil, Street Fighter, Mega Man, and many others. Initially, the products were available for arcade game machines, but later, Capcom published its games for home computers and consoles.

The numbers show that for the six months ended September 30th, the company sold over 20 million units. Even though it’s less than the same period of the previous fiscal year, seeing net sales of 56,402 million yen is still pretty good. With multiple awards and highly anticipated upcoming games, Capcom is a company that you should consider investing in.

For 2024, the price range of Capcom’s stocks is $7.81 to $12.18 per share, delivering a YTD percentage of 36.96%. Despite having a forward P/E ratio of over 30, it’s a gaming stock that presents plenty of benefits.

Take-Two Interactive Software, Inc.

The second option is another popular gaming development company. Take-Two Interactive (TTWO) owns 2K, Rockstar Games, and Zynga, so it needs no introduction. With titles such as Grand Theft Auto and Texas Holdem Poker in its portfolio, it’s a company worth investing in.

Looking at the results from Q2 FY2025, we see that Take-Two Interactive’s bookings were $1.47 billion. The Recurrent Consumer Spending (RCS) also rose by 6%, which was more than management’s expected 5%. With the long-awaited Grand Theft Auto 6 coming out in the Fall of 2025, as well as Tales of the Shire and the Zynga tournament, Take-Two isn’t slowing and has plenty of steam in its engines.

Since the turn of the year, share prices have gained more than 17.81%, trading at a year range of $135.67 to $188.15 per share. Performance of the last several months have shown that the company has maintained an upward trend and continues to deliver strong results.

NetEase, Inc.

For the next pick, we’re going for a company that falls under the gaming segment but offers a wider selection of products and services. NetEase (NTES) is an internet and service provider that focuses on multiple entertainment branches. At the moment, it’s one of the longest-running and most popular companies that develops PC and mobile games. While they’re primarily for the Chinese market, they’re available in various markets, including the U.S., Canada, and Europe.

Q3 2024 results show net revenue of $3.7 billion and gross profit of $2.3 billion, higher than in the previous quarter. NetEase has made many exciting announcements, including the recently renewed agreement with Blizzard Entertainment and a newly announced game in collaboration with Marvel Games.

Share performance has been across the board for much of the year, with prices peaking at $113.14 per share in February. Since then, share prices continued to slide, before peaking again at $104.26 per share at the start of October. Year-to-date performance sees NTES down 8.33%, however upcoming developments could help bolster its financial performance, and in return provide more promising delivery for share prices. 

Inspired Entertainment, Inc.

Inspired Entertainment (INSE) is a company that focuses on providing technology, content, and services to companies that focus on betting, lottery, and gaming operators. It covers 4 segments: virtual sports, gaming, leisure, and interactive. With thousands of gaming machines, retail venues, and products for websites in its portfolio

The company’s Q3 report for 2024 shows a revenue increase of 40% year over year, totaling $78 million. 3 out of 4 segments show an increase in revenue when compared with 2023. Gaming with $23.3 million, interactive with $10.2 million, and leisure, with $33.3 million, show higher numbers than last year. The only segment that’s down is virtual sports with $11.2 million. In addition to the numbers, announcements such as the launch of hybrid dealer roulette in Canada and a custom slot game, as well as the newly secured NHL license, show there’s a lot of potential.

Since the beginning of 2024, share performance has been zig-zagging across the board, with prices trading at a year range of $7.59 to $10.65 per share. Overall, year-to-date delivery isn’t that impressive, with shares gaining a modest 1.64% since the turn of the year. A strong fourth quarter delivery could help open the stock on a more positive note entering 2025, however, investors are looking at holding INSE for the long-term to capitalize on near-term developments. 

Sea Limited

The last entry on this list is another company that covers multiple segments. Sea Limited (SE) has a diverse portfolio of products covering three large niches, including gaming through its brand, Garena. It focuses on developing and publishing mobile and PC games, covering over 130 markets. There are many notable names on its list, with Free Fire being the most popular.

Outside of the game development segment, the company operates an e-commerce platform, better known as Shopee. Launched in 2015, Shopee has become one of the many leading e-commerce websites in Southeast Asia and Taiwan. During the third quarter earnings presentation, Forrest Li, Sea Chairman and Chief Executive Officer shared that Shopee remains on track to deliver on full-year guidance, with performance growth in the mid-twenties, year over year. 

Demand for e-commerce retail remains elevated around this time of the year, as budget-constrained consumers look to scoop up online deals during peak sales events, including Black Friday and Cyber Monday. The company reported that Shopee achieved a positive adjusted EBITDA, holding strong in regional and international markets, including Brazil. Major holiday sales events could likely bolster fourth-quarter performance, driven by increased sales activity and elevated consumer demand. This could align with the company’s projections to keep Shopee profitable moving forward.

Looking at the numbers, Sea Limited has managed to improve its position this year. GAAP revenue of $4.3 billion soared by over 30%, while gross profit rose to $1.9 billion, an improvement of 29.1% year-on-year. The company also boasted its net income of $153.3 million and adjusted EBITDA of $521.3 million. The recently announced alliance while applying for a virtual banking license shows that SE is thinking of the future.

While it’s been a challenging year for gaming companies as changing consumer preferences and buying behavior affects performance, Sea Limited has been on an upward trend for much of 2024. Shares have gained a robust 200% since the beginning of the year, and have added over 49% since the start of the third quarter through November 28. Even at this pace, SE holds strong momentum, and a Growth Score of B, according to Zacks Estimates. 

Conclusion

The rapid growth and advancements in the gaming industry make it a segment worth considering for your next investment step. With multiple options to choose from, buying stocks from this segment can add some diversification to your portfolio.

While it seems attractive, it’s important to make the right choice. To help you with that, we’ve outlined 5 of the most attractive investment options aimed at giving your portfolio a boost and helping you make some profits.