Video game creators and the Metaverse – get on board now

The streaming of music, films and series has shown this. Complete and quality content is of paramount importance for the success of the various platforms. where would be netflix (WKN: 552484), for example, would he do without his successful in-house productions today? The Metaverse will also need exciting content.

A simple representation of reality will quickly bore visitors. The gaming industry already has this content today. You can reach over two billion people worldwide. Companies have already created massive worlds for players to explore freely. In addition, many games have their own currencies and connect millions of people every day.

A weakened form of the metaverse already exists

company like electronic arts (WKN: 878372) with FIFA and take two (NYSE: GTA Online) generate a significant portion of their revenue on a recurring basis. The original selling price plays only a minor role. Game makers differ from the music industry and parts of the pre-streaming film industry on one key point: the major companies are already highly profitable.

The current situation could be a good time for interested investors to enter the market. Because there’s a lot going on in the industry. The proposed multi-billion dollar takeover of ActivisionBlizzard (WKN: A0Q4K4) to Microsoft (WKN:870747) showed this. Electronic Arts is said to have recently put itself on display for an acquisition. At the same time, game company valuations have become more attractive again in the wake of the general sell-off in the tech industry.

At the current price level, the risk with these stocks is manageable in my opinion. The number of active players rightly increases with each generation. They compete with other leisure activities for people’s free time. According to Newzoo experts, Americans between the ages of 10 and 35 spend a quarter of their entertainment time playing video games.

Future opportunities

Yet the metaverse offers tremendous opportunities for businesses. As people spend more of their free time in virtual worlds, the addressable market for video game companies is also growing. Esports dating videos and streams have long been some of the most popular content on platforms such as Twitch or YouTube. What’s more, the live concerts of stars in Fortnite already attract millions of people.

Mobile games in particular are growing rapidly in popularity thanks to increasingly powerful smartphones. Small screens are actually hardly suitable for an intensive gaming experience. This could change in the years to come. It doesn’t matter if it’s foldable devices or glasses, in the next few years it will probably be even easier to play everywhere.

It remains to be seen whether the whole will then be called Metaverse. In my opinion, however, game makers have a bright future ahead of them.

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