Reported 9 months ago
Veteran journalist, 李錦奇, reported on June 28, 2024, that the summer vacation season has always been a peak period for the gaming industry, with this year's Esports World Cup (EWC) set to kick off on July 4 in Saudi Arabia and run through late August. The 19-game tournament boasts a total prize pool of nearly NT$20 billion, making it the highest in esports history. Market experts, like the manager of First Global eSports Esports Fund, Liu Yuling, are optimistic about the vast business opportunities stemming from the gaming industry, such as integrating anime and toy themes to enhance consumer value, as well as revenue streams derived from film and music licenses, theme parks, which are expected to continue boosting stocks related to esports concepts in the future. Liu Yuling highlighted the global gaming esports market, which is projected to reach $280 billion this year and is expected to see a compound annual growth rate of nearly 9% in the next three years, reaching around $360 billion by 2027. With a significant market share of 50% in the overall digital entertainment sector, the gaming market is witnessing fierce competition with the rise of new entertainment formats like streaming media and short videos, prompting industry players to focus on enhancing player engagement, developing game content, optimizing operations, and technologies to drive new growth momentum. The optimization of 5G network speeds and cloud deployment have become essential environments for the tech industry, leading to the emergence of new operational models in the gaming industry under the cloud development trend, such as cloud gaming and streaming platform subscription models, bringing new platform subscribers and revenue sources, driving mutual benefits for game developers and platform operators. The application of AI-generated technology also helps in cost reduction and improves marketing and advertising efficiency in the gaming industry, resulting in multiple advantages for the sector. Highlighting the interrelation of the gaming industry with other sectors, Liu Yuling emphasized the pivotal role of combining basic infrastructure and technological development needs with AI applications, driving the establishment in the semiconductor and software sectors. Moreover, the focus on innovation and popular trends in the gaming industry has drawn attention to game developers, operators, and platform operators who prioritize clear schedules for new game releases while creating communities, cloud integration, and IP applications, making them an investment focus. The article also mentions the significant performance of gaming and esports stocks, alongside the AI effect heating up, with gaming and esports indices benefiting from it. Bloomberg data shows that over the past five years, the esports index has had a return-risk ratio of 0.95, surpassing the S&P 500 index's 0.6, with an annualized return rate of around 20%, outperforming the S&P 500's 12.6%. Furthermore, compared to the Nasdaq, which is mainly composed of technology stocks, the esports sector has displayed significant advantages, maintaining a bullish structure in the US stock market and expected to continue boosting investments in gaming-related stocks. Given the impetus from economic recovery and consumer revival momentum, the esports gaming industry is witnessing continuous growth, prompting First Fund Management to advise players and active investors to consider participating in the esports technology industry investment opportunities through regular investment schemes. For more interesting articles, detailed market insights on popular topics such as the release of the Detective Conan movie, the lively opening of the Unification Era Kaohsiung Store, and the collaboration between Pizza Hut and 'Kuroko's Basketball' offering magic wand pizzas, kindly refer to the original article for details and viewpoints.
Source: YAHOO