Three video game publishers riding the esports wave

These companies are well positioned on a long runway of growth as the market continues to expand.

Vikram Barhat 15 August, 2018 | 5:00PM

The market for the video gaming industry is undergoing a transformation as game publishers toggle with disruptive technologies to unlock new revenue streams.

The growing popularity of subscription-based business is prompting some video game makers to consider tapping into cloud-computing technology to offer streaming services for videogames, also known as cloud gaming. In a more noteworthy trend, publishers are doubling down on esports -- video game tournaments for professionals and amateurs -- as they strike multi-million dollar partnership deals with media giants to bring competitive video gaming to mainstream television. Market research firm Newzoo projects that the global esports market will grow from US$463 million in 2016 to US$1.4 billion by 2020, led by North America, the largest esports market.

Efforts to drive faster revenue growth by reaching a wider audience through both digital and traditional media platforms are already bearing fruit. Globally, the combined video game and esports market exceeded US$106 billion in 2017, according to PricewaterhouseCoopers' 2018 Global Entertainment and Media Outlook report, which projects the growth to average 7% annually over the next five years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Activision Blizzard Inc82.37 USD0.81
Electronic Arts Inc142.43 USD1.81
Take-Two Interactive Software Inc171.87 USD2.24

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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