Graphics Engine and Rendering: Relying on the Periphery
Have you experienced a PC or console game yourself? Right at the beginning, all trademarks and engines used are identified. Examples are the Unreal Engine, Unity or the Crytek Engine. There is a simple principle behind this: some companies develop programming environments that are used, for example, for rendering game graphics.
This is not only used in their own games, but by a broad mass of developers. A licence fee is charged for its use. This is a very common pattern. In some cases, the companies become better known through the engine than through their games - and thus generate a significantly higher turnover. If these companies have dared to go public, you can trade these securities without any problems.
Trading Publisher Shares
Publishers in particular - in contrast to developers - have now reached an importance and size that they are traded on the stock exchange. Take2 Interactive, for example: the publisher of Red Dead Redemption is listed on the NASDAQ. But you will also find the shares of the French marketer Ubisoft on the stock exchange. Their shares are a very direct way to invest in gaming. In view of the historical development of some of the securities, it becomes understandable why gaming is not only of interest to die-hard gamers. In the case of Ubisoft, for example, there is a difference of around 100 euros between the low and the high over the last 10 years.
As an investor, you invest in the gaming industry not only through shares or CFDs in exness cryptocurrency. Independent studios and smaller developers in particular often rely on crowdfunding. Kickstarter is particularly popular here. But you can also lend money to developers via crowdlending. If the games become a hit, there is a return for you. Be clear here where the risk lies. In crowdfunding, there is a risk that you will have to write off money.
Hardware manufacturers: Games accelerate the industry
Some companies were unknown to laymen 20 years ago. Intel and AMD were already known. But Nvidia or Palit - only a few traders were aware of them. Today, both are hardware manufacturers that no gamer can afford to ignore. Nvidia focuses on graphics cards and the development and production of chips. Palit is a manufacturer of high-quality graphics cards. Among other things, overclocked models are part of the product range. But both are only two examples.
Especially in the area of hard disks and mainboards for the CPU, some "big players" have established themselves. Examples are:
- Seagate
- MSI
- Corsair
- Asus etc.
In the meantime, the groups and companies have grown so much that they have made the leap to the stock market - and can be held by you in your portfolio as a workaround for gaming shares, so to speak.
In the process, gaming - and the demand for ever more performance and better graphics - continues to drive the development of new standards. However, the fact that the industry is booming is sometimes not only attributable to gamers. For example, Nvidia and AMD experienced a massive surge in demand from 2017 to 2019. However, this did not come from gamers, but from the mining of cryptocurrencies. The latter were partly calculated particularly efficiently with the GPU (central processing unit of the graphics card).