Friday, December 2, 2022

6 Most Valuable Gaming Companies in the World

6 Most Valuable Gaming Companies in the World

In 2018, the global revenue in the gaming industry grew by 10.9% to reach $135 billion, and in 2021, the revenue for this industry increased to $180.1 billion. This is just the beginning as analysts believe the industry will reach as much as $300 billion by 2025. The growth is mainly coming from mobile games. With an audience of 2.5 billion “regularly active” players, they lead the industry.

Special emphasis is placed on occasional play: “casual” and “hyper-casual” games, which are lite games that you play while waiting for the bus. With the mechanism of “in-game” purchases (the games are virtually free, but while you play you can buy extras for small amounts that make the game more fun), casual gaming is the growth pole par excellence. 99 cents for a handful of “coins”, multiplied by about 2.5 billion players and the bill is rapidly increasing. Not surprisingly, the strongest growth has come from Asia, especially Bahrain, where online Bahrain casino كازينو البحرين and e-sports are very ‘hot’. Very popular are the (role) games in which many players can participate at the same time (massive multiplayer).

Despite the large number of gaming companies available on the scene, this industry is led by six main companies, namely:

Microsoft

The American Microsoft develops both games and large game systems and is a major competitor of Sony, which actually does the same. At the moment, the 2020 release, among other things, contributes significantly to the income, namely game console Xbox Series X/S. It is also acquiring many game companies, including Bungie (Halo), Mojang (Minecraft) and most recently Activision-Blizzard (World of Warcraft).

Microsoft software is ubiquitous. The Windows operating system still controls the PC market, while SQL Server is one of the major database platforms. In addition, Office 365 & Microsoft Dynamics are among the most popular software applications for businesses. Finally, Azure ensures that Microsoft is one of the most important cloud players. But something few investors know is that 38% of revenue comes from the gaming division.

Microsoft divides its activities into 3 segments, which is not a superfluous luxury to keep an overview. ‘Personal Computing’ includes the well-known Windows operating system for PCs and the hardware of our own making, such as the Xbox console for (online) gaming and the Surface tablets. This department still accounts for about 40% of revenue, with Windows accounting for the lion’s share.

Microsoft’s market capitalization is$929 billion, the largest stock in the world. The estimated P/E ratio for 2019 is 27.29x. KBC Asset Management has a “Buy” recommendation with a price target of $125.

Some of the best games that the company released are:

·  Sea of Thieves

·  Minecraft

·  Age of Empires

·  Forza

Sony

Sony from Japan does much more than games. Walking in 7 slots at the same time is not good, but Sony doesn’t seem to be bothered by that. It is a household name in the technology world, but certainly also in that of games. Sony develops its own games and its own consoles, of which PlayStation 5 from 2020, in particular, is a high flyer. It’s a shame there are so many delivery issues, otherwise, Sony could have been much more successful. After all, people not only invest in a console but then also buy games for it.

Nintendo

When you say Microsoft and Sony, we also must mention Nintendo. The third and last major pillar when it comes to making game consoles, although Valve is now also lurking with its Steam Deck to become known for hardware. Nintendo needs no introduction: The Japanese puzzle company was founded in 1889, but shifted to video games in the late 20th century. A smart move: the most beloved and recognizable game characters in the world belong to Nintendo: the characters from Mario, Zelda and Pokémon. In addition, it makes its own game consoles, of which the handheld console hybrid Switch is also a huge hit.

Activision Blizzard

Despite Activision Blizzard being recently acquired by Microsoft but right now it is still a gaming powerhouse in its own right. The company was founded in 2008 by the merger of – unsurprisingly – Activision and Blizzard Entertainment. The American company has since created and developed many of the largest franchises and a number of competitive, online games: World of Warcraft, Overwatch, Call of Duty, Tony Hawk’s Pro Skater, Crash Bandicoot games and more.

Tencent

Founded in Shenzhen, China, Tencent has grown into one of the largest game companies in the world. Its revenue from games was 13 billion euros in 2021. It is best known for mobile games, such as PUBG: Mobile and Honor of Kings.

Tencent is a bit of an odd one out. While most publishers launch games for PC and/or consoles and offer mobile versions, Tencent mainly derives its income from online gaming and (online) advertising. That makes Tencent the largest online gaming company in the world.

Tencent has a significant advantage over other online gaming companies as it enjoys network effects through WeChat’s very sizable customer base. Tencent thus created a digital ecosystem that aims to meet a wide range of online lifestyle needs of its users. The company plays it smart: it also has shares in many other major game companies around the world. From their ownership of League of Legends developer Riot Games to their 40% stake in Epic Games and 5% stake in Activision Blizzard and Ubisoft, Tencent “messes” with many of the game companies featured in this article that way.

Electronic Arts

Electronic Arts (better known as EA) was founded in 1982 by Apple employee Trip Hawkins. The company pioneered software game development and has managed to stay relevant to this day. Thanks in part to long-running franchises such as Battlefield, Need for Speed, The Sims, Dragon Age, Star Wars, FIFA, Madden NFL and NBA Live. EA is especially good in sports games, which are innovated every year and played by countless sports fans (and sports pros). EA is also at the helm of major game studios such as DICE, BioWare and Respawn Entertainment.

It has a market capitalization of $29.3 billion. Americans invest heavily in interactive games and Electronic Arts has a separate department for this: The Competitive Gaming Division. The digital component accounts for 65% of revenue. That includes games offered through Sony’s Playstation Network, Microsoft’s Xbox Store, Apple’s App Store, and Google’s Play store. The estimated P/E ratio for 2019 is 25.08.

About the Author

This article was submitted by Daniel Klink who is one of the most prominent iGaming experts on the scene today. Mr. Klink has a lot of experience in the iGaming industry, and he provides his followers with comprehensive reviews about the best Arab casinos, explanations of the most prominent games, how to use payment methods, and other useful aspects. If you would like to know more information about Mr. Klink, you can find more information here also you can contact him through the embedded contact form.

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