Gaming Giants on Wall Street: The Top 4 NYSE-Listed Video Game Companies and Their Investment Potential
The video game industry has grown into a multi-billion-dollar business, capturing the attention of investors worldwide. With new gaming trends like cloud gaming, AI-driven development, and esports, the biggest players in the market are constantly evolving. For investors, the question is simple: Which of these gaming stocks are worth your money?
Today, we’re analyzing the top four gaming companies listed on the New York Stock Exchange (NYSE) that I have in my portfolio to determine their continued investment potential. Let’s dive in…
Take-Two Interactive (TTWO)
The Powerhouse Behind GTA and NBA 2K
Take-Two Interactive is the force behind some of the most iconic franchises in gaming, including Grand Theft Auto (GTA), Red Dead Redemption, and NBA 2K. Their acquisition of Zynga in 2022 also gave them a solid foothold in the mobile gaming market, expanding their reach beyond consoles and PC gaming.
Investment Positives
Massive Franchises: GTA alone is a money-printing machine. With GTA VI set to release in 2025, expect a surge in revenue.
Diversification: The Zynga acquisition allows Take-Two to tap into mobile gaming, one of the fastest-growing sectors.
Live Services & Microtransactions: NBA 2K and GTA Online provide continuous revenue streams through in-game purchases.
Investment Risks
Heavy Development Costs: AAA game development is expensive and time-consuming, meaning revenue is cyclical.
Market Expectations: A disappointing GTA VI launch could severely impact Take-Two’s stock price.
Mobile Growth Uncertainty: Zynga has yet to prove that it can generate blockbuster hits on par with Take-Two’s core titles.
Verdict: BUY
With GTA VI on the horizon and strong franchises, Take-Two is a long-term winner. The stock may be volatile leading up to the release, but if you're in it for the long haul, it’s a solid buy.
Electronic Arts (EA)
The King of Sports Games and Live Services
EA is best known for its FIFA (now EA Sports FC), Madden, and Apex Legends franchises. Their focus on live-service gaming, sports simulations, and online multiplayer has made them a stable player in the gaming industry.
Investment Positives
Recurring Revenue Model: Sports games rely heavily on Ultimate Team microtransactions, generating billions in revenue.
Strong Online Presence: Apex Legends is a consistent earner in the battle royale space.
Esports Expansion: EA’s focus on FIFA and Madden esports helps boost engagement and revenues.
Investment Risks
Consumer Backlash: EA is notorious for its pay-to-win mechanics and microtransactions, which could lead to regulatory scrutiny.
Dependency on FIFA & Madden: While they’re cash cows, a decline in their popularity could spell trouble for EA.
Competition in Live Services: Apex Legends faces competition from Call of Duty: Warzone and Fortnite, making player retention an ongoing challenge.
Verdict: HOLD
EA is a safe but uninspiring stock. Their dominance in sports gaming ensures steady revenue, but growth potential is limited unless they can innovate beyond their core franchises. If you already own EA, it’s worth holding, but it’s not the most exciting opportunity in the sector.
Ubisoft (UBI)
Assassin’s Creed, Rainbow Six, and a Troubled Future
Ubisoft is a French-based gaming giant with hit franchises like Assassin’s Creed, Far Cry, and Rainbow Six Siege. They’ve been an influential name in the industry, but their stock has struggled due to delays, mismanagement, and weak new releases.
Investment Positives
Strong IPs: Assassin’s Creed remains a popular franchise with a dedicated fanbase.
Expansion into Streaming & Subscriptions: Ubisoft+ is an attempt to pivot toward subscription-based gaming, a growing trend.
Rainbow Six Siege: A highly profitable live-service title that continues to generate revenue.
Investment Risks
Development Issues: Ubisoft has a history of delays and underwhelming launches, leading to financial struggles.
Over-Reliance on Assassin’s Creed: While successful, the company has failed to develop new blockbuster franchises.
Poor Stock Performance: Compared to competitors, Ubisoft has underperformed in recent years and struggles to regain investor confidence.
Verdict: SELL
Ubisoft is stuck in a cycle of delays and declining relevance. With better gaming stocks available, there’s little reason to bet on a Ubisoft turnaround.
Activision Blizzard (ATVI) - Now Part of Microsoft
Call of Duty, World of Warcraft, and the Xbox Ecosystem
While Activision Blizzard was acquired by Microsoft, the stock remains relevant to investors. They own Call of Duty, World of Warcraft, and Diablo, and with Microsoft’s backing, they now have the resources to expand their reach across PC, console, and cloud gaming.
Investment Positives
Call of Duty Dominance: A guaranteed blockbuster every single year.
World of Warcraft & Diablo: Strong live-service games with dedicated players.
Microsoft Integration: Being part of Xbox’s ecosystem means better distribution, Game Pass expansion, and cloud gaming potential.
Investment Risks
Regulatory Scrutiny: Microsoft’s acquisition faced antitrust concerns, and future regulatory issues could slow down innovation.
Game Pass Cannibalisation: If Call of Duty is included in Game Pass, it could lower unit sales but increase subscriptions.
Blizzard's Reputation: Mismanagement and internal scandals have hurt Blizzard’s brand over the years.
Verdict: BUY
With Microsoft backing it, Activision Blizzard is poised for growth. The acquisition gives them access to better technology, wider distribution, and cloud gaming expansion. It’s a great long-term play.
Final Thought
Gaming stocks can be lucrative but volatile investments. The industry’s reliance on hit-driven revenue cycles, evolving business models, and changing consumer trends means that picking the right company is crucial.
Take-Two (BUY): Strong IPs and GTA VI excitement make this a great bet.
EA (HOLD): Stable but uninspiring. Their revenue is reliable, but growth is uncertain.
Ubisoft (SELL): Mismanagement, delays, and lack of innovation make this a stock to avoid.
Activision Blizzard (BUY): Now under Microsoft, its future looks stronger than ever.
If you’re investing in gaming stocks, go big on proven winners and avoid companies stuck in the past. The market rewards innovation, and the best gaming companies are those that stay ahead of the curve.
Bill White Says...
"Investing in gaming stocks is like playing Call of Duty—some companies dominate the match, while others keep getting spawn-killed by their own bad decisions."