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Optimism for gaming industry

Writer's picture: Trista YuenTrista Yuen

Updated: Sep 28, 2021

Recently, the Chinese government announced that underage teenagers can only play online games for one hour from 8 pm to 9 pm on Fridays, Saturdays, Sundays, and statutory holidays. Investors may worry that this policy will have negative impacts on the gaming industry, but according to Tencent's report in 2nd quarter 2021, gamers in China under the age of 16 accounted for only 2.6%, and gamers under the age of 12 only accounted for 0.3%. Therefore, this new regulation may not have much impact on gaming companies.


On the contrary, the global gaming market continues to expand, and it is expected that by 2030, gamers will grow to 3.1 billion. IDC (International Data Corporation) report shows that at the peak of the epidemic in 2020, the online gaming industry has grown by 20%, generating US$180 billion of revenue. In 2021, gaming and e-sports stocks continue to rise, and their index has consistently outperformed the S&P 500 index since establishment. At the end of August, their performance was even higher than the S&P 500 index by 227%.


It can be seen that the prospects for the gaming industry is still optimistic. Investors can observe the development of gaming companies and consider adding online gaming or e-sports assets to their investment portfolio.



Source:

Hong Kong Economic Times, IDC (International Data Corporation)

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