For many, it may come as a surprise to hear that gaming is firmly rooted at the top of the tree as the largest entertainment industry in the world. In fact, with an estimated global revenue of $455 billion in 2024, gaming is now more lucrative than the film, TV, and music industries combined, establishing itself as a true market behemoth. With continued growth projected, thanks in part to the constant innovation being witnessed in digital technologies, gaming has cemented itself as a lucrative investment opportunity with the potential for high returns, a possibility for smart investors. Considering this, here’s our list of the best gaming company stock picks coming into 2025.
Electronic Arts
One of the most recognizable names in global gaming, Electronic Arts (EA), has been a major games developer for decades, establishing some of the most famous gaming franchises in history. EA Sports FC (formerly FIFA), The Sims, Madden NFL, and Battlefield are just some of EA’s major releases, highlighting their position as a leading mainstream developer. Such a strong franchise portfolio, with games like EA Sports FC releasing a new edition every year, provides EA with a stable revenue base, while their adoption of modern gaming practices is enabling them to stay current in a crowded market. Through the incorporation of microtransactions and subscription-based payment models, EA has been able to continue its impressive revenue growth.
Sony Interactive Entertainment
As the owner of the PlayStation brand, makers of the industry’s best-selling game consoles and their orbiting digital ecosystems, Sony continues to be a dominant force in the gaming scene. With an estimated revenue of over $87 billion for the 12 months ending in September 2024, Sony remains well-established as one of gaming’s big three companies. Carefully combining its traditional offerings with more cutting-edge gaming technology, Sony has managed to maintain its position in the market while futureproofing its operations. This is through continuing to outsell competitors in the console market, catalyzed by exclusive franchises such as God of War and The Last of Us, while investing heavily in emerging tech like VR and cloud gaming.
Playtech
One aspect of the gaming industry that is often overlooked is the world of online casino games that are played by millions across the globe. With the iGaming sector emerging rapidly over the last decade, many of the scene’s leading developers continue to grow with it. Playtech is one of these companies, providing top-of-the-range digital software for many of gambling’s household names, including Bet365 and Ladbrokes. Through several innovations in game design, the company has revolutionized the online experience for players, making it more exciting than ever before. Platforms are also innovating. For example, casinos will sometimes offer codes giving players impressive bonuses on many of the leading games developed by companies like Playtech. As the iGaming market continues to grow on the global stage, careful investment could prove rewarding.
Activision Blizzard
Even before its acquisition by Microsoft for $69 billion, Activision Blizzard was long seen as a powerhouse of the gaming industry, developing countless blockbuster releases across all gaming formats, including console, PC, and mobile. Creators of the massive Call of Duty series, the hugely popular World of Warcraft franchise, and Candy Crush, one of the most successful mobile games ever, the company has managed to produce a diverse portfolio unmatched in the industry. With billions of dollars being produced in revenue by their big hitters, the company has also been able to develop its payment structures, transferring away from traditional formats to more lucrative freemium models. Now backed by Microsoft’s huge digital framework, it looks as though Activision Blizzard will continue to be at the forefront of game development.
Tencent
When it comes to naming the single biggest gaming company in the world, Chinese tech conglomerate Tencent is certainly in the discussion. The company has majority stakes in some of the world’s most successful games studios, including mobile gaming giant Supercell, the makers of Clash of Clans and Brawl Stars, and Riot Games, which has revolutionized the social gaming scene with its League of Legends MMO. Tencent’s subsidiary TiMi Studios also operates Honor of Kings and Call of Duty Mobile, two of the most-played mobile games globally. While many of the other companies on this list trace much of their current growth back to past successes, Tencent is very much today’s trendsetter, dominating the mobile scene while maximizing the potential of online multiplayer gaming. With profits of around $7.4 billion and revenue growth of 8% last year, if you’re looking to start trading stocks in the gaming industry, Tencent appears to be a high-potential investment.
Microsoft
American tech company Microsoft has long had one foot in the gaming industry thanks to its Xbox series of game consoles and online platform. And with the recent expansion of its gaming arm, the company continues to be a big shot on the market. By launching their Game Pass in 2017, Xbox introduced a subscription model to their offering, and with over 34 million subscribers to date, recurring revenue has been able to be generated. The recent acquisition of Activision Blizzard has further strengthened its position, expanding its portfolio in video game development and handing it a huge bargaining chip to play against its market rivals. Microsoft’s greatest attraction from an investment point of view, however, is its expertise in the latest digital technologies. With Azure, the company possesses the second-largest cloud provider in the world, while a significant investment in AI could soon put Microsoft in an unassailable position in the gaming market.
For those looking to invest in stocks, it cannot be denied that the gaming industry currently presents a promising market primed for further growth. Importantly, the rise of mobile gaming, the incorporation of novel technologies, and the emergence of new high-growth markets continue to impact stock dynamics and should be considered before investment. By completing careful, thorough research, your next gaming stock pick could prove to be a successful one.
