This article was originally published on ETFTrends.com.
When it comes to creating a diversified, profitable investment portfolio, it’s not all fun and games. “Not all” being the operative words as the gaming industry has created investment opportunities for savvy investors looking to capitalize on an industry that is only getting bigger by sprinkling in game development companies into their portfolios.
According to Oppenheimer Funds, “TV revenue fell by 8% last year – the gaming sector’s sales are increasing at an annual rate of 10.7%. Some of the greatest growth is coming from relatively new markets, like China, where game sales are climbing 14% per year.”
Companies like Frontier Developments, Take-Two Interactive Software Inc. and Activision Blizzard Inc. are leading the front in the game development industry that got a little more interesting with the introduction of Fortnite. Fortnite, a free multi-player shooter game with an online social interaction element, is currently the rage with adolescents and could change the gaming landscape.
Take-Two CEO Strauss Zelnick said the mania surrounding Fortnite doesn’t change the way his company does business. Take-Two is the publisher of the popular Grand Theft Auto video game series—an action-adventure game that appeals to a more mature audience with its no-holds barred violence.
“Being derivative is not the way you win in the entertainment industry; you have to be innovative,” said Zelnick. “And what we focus on is bringing the highest quality of entertainment to consumers and blazing new trails.”