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Limited outdoor entertainment and recreation activities helped the video game industry expand its active user base and generate significant returns last year. While increasing vaccination rates and decreasing COVID-19 cases were expected to slow the market this year, video game companies’ efforts to improve software, consoles, content, and graphics helped the industry generate sales worth $4.40 billion in October 2021, up 16% from the prior-year period.
Also, rising interest in metaverse gaming further enhances the industry’s long-term growth prospects. Investor optimism in this space is evident in the Global X Video Games & Esports ETF (HERO) 9.9% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 4.8% returns. The global gaming market is expected to grow at a 13.2% CAGR to reach $545.98 billion by 2028. So, both RBLX and EA should benefit.
