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Showing posts from November 27, 2016

Overlooked Sectors: Video Game Industry

We believe that the Video Game industry has been overlooked. There are not many ETFs or mutual funds that are solely dedicated to this sector. It is considered a niche market, although it is supported by large industry players like Sony, Microsoft and Asian industry giants like Tencent and TakeTwo. However, the industry is a money-making cash machine for many businesses, and hit games like 'Pokeman Go' help firms generate gross margins of over 40% in the industry. . For large software and hardware behemoths like Microsoft, the video gaming segment is wrapped in its Personal Computing Operating Segment which includes Gaming, Xbox hardware; Xbox Live, comprising transactions, subscriptions, and advertising; video games; and third-party video game royalties. This segment may only represent about 10% of total Revenues for Microsoft but the profit margins from this segment are tremendous. Our current Subscriber Pool called  TEAM  contains 5 of the top video gaming stocks in