There are more ways to make money off video games in 2021 than simply collecting rare cartridges. As the technology in this space has continued to evolve, the marketplace has grown incredibly lucrative for people from all backgrounds. Indeed, during 2020, the top players in the digital gaming space saw massive benefits from their investments, thanks to the fact that more people were spending their time indoors and looking for extra sources of entertainment. As we head into the new year, market leaders like Capcom and EA are attracting many existing and future investors into the world of gaming, but is this an area you should be considering for your portfolio?

The Opportunities in the Marketplace

Despite some ups and downs over the decades, the video gaming industry has stood out as one of the winners of the current landscape, particularly after the pandemic. There are billions of players around the world, accounting for around a third of the world’s population. By the end of 2020, the marketplace was making a massive global revenue, and the potential just kept growing. For those interested in diversifying their portfolio, this landscape could be a powerful tool. After all, a compound annual growth rate of 12% means that there’s an opportunity for growth both in the short and the long-term with this landscape.

Further growth is also being generated by the arrival of new opportunities in the space. In 2020, a new selection of flagship consoles emerged in the market, with demand far outweighing supply, allowing for a new buzz to generate in the industry. Elsewhere, the eSports marketplace generated more attention from people who were looking for new forms of entertainment and ways of replacing shut-down sports opportunities with a similar competitive experience.

Making Your Trading Choices

There’s no one-size-fits-all strategy for choosing what kind of industries you should get involved with when building your portfolio. For day trading, many experts thrive using relative volume to predict home run trades, while long-term investors prefer to focus on historical growth. One of the most important things you can do when choosing your opportunities, however, is making sure that you focus your attention on something you’re passionate about. Ask any successful investor how they got started with choosing the kind of options they wanted to invest in, and they’ll tell you that although they did their research and learned about the market as much as they could before spending any money, they started with spaces that they were already interested in.

Being passionate about the industries that you’re spending your money in gives you a huge advantage. If you understand the landscape and how it works, you can use that knowledge to see things that other people might miss. This could include being able to determine when there’s likely to be a spike in value when no-one else sees the same thing. Because of this, it makes sense to get involved with the video game industry if you’re already interested in the space and have a love for how it works.