Me: What If I told you that you make Big Money in Gaming.
Investor: Well, “ I am not interested in playing games”
Me: Oh, you don’t have to play games, you just have to watch other play games.
Investor: Is it So.
Me: Yes, that’s true.
Me: Well, what if I tell you there is a company that makes money by creating a platform where players and viewers meet. So neither you have to play a game nor watch anyone play a game.
Investor: How much money can really be made.
Me: If I were to refer to the old reports it was estimated for 2020 as USD 1 Billion but the current stats suggest in spite of the Pandemic we have grown to USD 1.5 Billion.
I will not be surprised if we have a few multi-millionaire from the gaming industry from India in the next decade.
And we are just getting started, with better internet penetration, cheaper mobile phones, and tablets it could very well explode. Also, spending on game development can drastically increase with the increasing market for consumption.
eSport is similar to any other real professional sport except for there is no real person playing. The revenue streams are similar.
The traditional sports landscape could change drastically. You would be surprised to know some of the big names on the Broadcasting and Streaming platforms such as - TV, Twitch, YouTube, Facebook, Voot.
Well if this was not enough, your next-door PVR would start streaming gaming tournaments soon.
I won’t be surprised if PVR comes into Gaming Theaters.
We also have an example of how the gaming industry affected the Indian market with the advent of PUBG. Worldwide esports viewership will grow to 519 million by 2024. In comparison with other countries, Indian Demographics are supportive of the Gaming industry.
We took a position in Nazar Technologies when no one was talking about the same, not boosting our stock-picking skills but trying to compete with stalwarts in the industry with unlimited promotion and marketing funds.
Nazar Technologies are in the below-mentioned space and eSport is just a small part of the companies revenue.
Gamified Early Learning
E-Sports
Real Money Gaming
Telco Subscription
Freemium In-App Purchases
Generation X Companies in this article I have spoken about how the investors who have got into the sector early on benefited in the long term.
Note - I am a SEBI registered Research Analyst and recommend my clients on stocks and I also invest in a personal capacity. The above thesis was for educational purposes and should not be considered as “BUY” or “SELL” advice.
Disclaimer: It’s safe to assume that I and my clients might have an interest in the stock mentioned in the above article and we might change our view at any future point in time.
Next article I am going to talk about another interesting company that is about Hit the block in the coming time.
This newsletter is only for educational purposes and the companies mentioned are not supposed to be treated as a piece of advice.
See you guys Next Week.