The gaming industry is now larger than the music and movie industries combined, making it a major industry in entertainment, says John Lobb from Insync Funds Management.
This year, the global gaming market is estimated to generate US$152.1 billion from 2.5 billion gamers around the world.
Gaming vs Movies and music | Revenue |
---|---|
Global gaming market | US$152.1 billion |
Global box office | US$ 41.7 billion |
Global music | US$ 19.1 billion |
Source: https://www.ejinsight.com/eji/article/id/2280405/20191022-video-game-industry-silently-taking-over-entertainment-world |
By comparison, the global box office industry was worth US$41.7 billion while global music revenues reached US$19.1 billion in 2018.
“It’s wrong to limit gaming marketplace to adolescent boys (and 20-30-year-old men) on PlayStation and Xbox. Gaming technology has now entered the mainstream in terms of pastimes.”
“Both younger girls and 20 somethings are being drawn towards the Nintendo Switch for its ease of play and fun factor, perfect for couples who are having to spend a little more time at home.”
“Hollywood or even Bollywood will never regain the top spot as gaming and streaming channels like Disney+, Hulu and Netflix continue to drain cinema revenues,” said Insync’s John Lobb.
Disruption stocks can provide investment returns now
Insync’s investment strategy concentrates on disruption and its interrelationship with a global megatrend rather than just investing in disruptive companies. Megatrends tend to be long term and less dependent on the economic cycle, so help us reduce investment risk by being more resilient during economic and market downturns. This allows us to take a buy and hold approach which reduces risk and cost in trading
“Our investment philosophy revolves around high quality companies. We look for companies that are benefiting from disruption, have long runways of growth through exposure to global megatrends and are highly profitable,” commented Mr. Lobb.
John Lobb
Portfolio Manager
Insync Funds Management
02 8094 1255
jlobb@insyncfm.com.au
www.insyncfm.com.au