Updated: Apr 13, 2020
The year was 1985 and Nintendo launched gaming. The world would never be the same.
In the 1990s, there were 100 million people playing video games. Today, gamers are 2 billion strong and counting. Gaming consoles have improved dramatically, games are realistic and they can be played anywhere on mobile devices. Games these days are compelling to play and have actually been show to be GOOD for kids. They build critical thinking and problem solving skills rapidly.
The business of gaming is expanding and it's growing like a wild fire.
The ecosystem of gaming is vast. It includes:
1. Video games developers
3. eSports streaming services
4. eSports leagues
Gaming companies have traditionally monetized games by selling the actual game, but that's changing. Many games are now free to play and the monetization comes from micro-transactions inside the game to improve characters, buy equipment and to improve gameplay. It's genius.
5G and cloud computing will make the experience even faster and games will get even better.
Live streaming has allowed gaming stars to emerge. We used to follow/idolize sports stars in basketball, baseball and football. Kids now are following the best Fortnite players and they are filling stadiums to watch championships. Over 100 colleges now have eSports leagues. The times, they are a'changing.
The founder of Netflix has said their biggest competitor isn't HBO - it's video games!
We know it's undisputed fact this industry is growing and will continue to grow. But, individual names in this industry are under intense competition to come out with the next blockbuster game, faster hardware, and disruptive technology.
Let's not bet on 1 individual stock that could be here today, gone tomorrow.
We think it's a better idea to invest in a group of these companies that will grow together.
Global X has a relatively new index fund that holds 38 of top companies in the gaming ecosystem. These companies include Nintendo, Nvidia, Electronic Arts, Activision Blizzard, and NetEase - all leaders in their field.
In a single trade, we can hold dozens of these companies at one time and not take the risk of holding one or two individual stocks.
This is why we're adding ticker symbol HERO to Index PRO.
Index PRO is part of our PRO portfolio system and you can learn more about it here.
Read more about the index fund HERO here.