| Name and ticker | Current price | Market cap | Dividend yield |
|---|---|---|---|
| Capcom (OTC:CCOEY) | $10.68 | $9.1 billion | 0.59% |
| Take-Two Interactive Software (NASDAQ:TTWO) | $226.99 | $41.8 billion | 0.00% |
| Microsoft (NASDAQ:MSFT) | $405.19 | $3.0 trillion | 0.85% |
| CD Projekt (OTC:OTGLY) | $17.70 | $7.1 billion | 0.39% |
| Nintendo (OTC:NTDOY) | $11.16 | $52.3 billion | 0.60% |
1. Capcom
Video game developer and publisher Capcom is thriving, thanks to successful releases that have strengthened its key franchises and produced impressive sales and earnings growth. In addition to its Resident Evil and Monster Hunter franchises, the company's properties include Mega Man, Devil May Cry, and Street Fighter. Capcom also has a deep library of lesser-known but beloved classic games.
There are many reasons to like this longstanding business, which has been a video game industry stalwart for decades and created some of the medium's most memorable gaming experiences. Capcom's remake of Resident Evil 4 had topped 10 million units sold through December 2024 since its March 2023 launch, and the company's ability to tap into its library of classic games and series makes it one of the most promising players in the industry.
Capcom pays dividends and aims to return roughly 30% of its annual profits to shareholders. Earnings can be erratic in the video game industry, but Capcom's management clearly prioritizes returning cash to shareholders.
2. Take-Two Interactive
NASDAQ: TTWO
Key Data Points
Take-Two Interactive's valuation has grown rapidly due to stellar performances by its core franchises. Grand Theft Auto is the company's biggest and most important property, and, as a series, one of the most profitable in all of gaming entertainment. Take-Two's Red Dead Redemption series has been very well-received, and its NBA 2K basketball series is a leader in the sports game category. The company also owns a variety of smaller series and other development initiatives that help to drive growth.
Game development is typically complex and resource-intensive, yet the development studios behind Take-Two's top franchises have repeatedly delivered outstanding products. Take-Two is skilled at delighting players and sparking high levels of both engagement and in-game spending. The company's strong financial position enables it to aggressively pursue new growth opportunities in categories such as mobile games and esports.
3. Microsoft
NASDAQ: MSFT
Key Data Points
Microsoft is primarily a productivity software and cloud computing company, but the tech giant is also one of the most prominent players in the video game industry. Microsoft is behind the Xbox game console, its Windows operating system is the de facto standard for PC gaming, and it owns a wide variety of game studios.
Microsoft owns Minecraft developer Mojang and Elder Scrolls developer Bethesda, and it also acquired video game juggernaut Activision Blizzard in a blockbuster $70 billion deal, winning a final appeal by the Federal Trade Commission in May 2025. Activision Blizzard owns iconic franchises such as Call of Duty, World of Warcraft, and Candy Crush, and is a leader across console, mobile, and PC platforms.
4. CD Projekt
OTC: OTGLY
Key Data Points
OTC: NTDOY
Key Data Points
Nintendo is a pioneer in the video game console industry. The Japanese company launched the Nintendo Entertainment System in the 1980s, followed by a series of popular systems. The Switch console has sold more than 152 million units worldwide since its launch in 2017, and the Switch 2 system is poised to power a major new growth phase for the company.
Nintendo is notable for making many of the most popular games on its own systems. Iconic franchises such as Mario, Zelda, Super Smash Bros., Animal Crossing, and Pokémon have spawned an endless series of games and have sold hundreds of millions of units over the years.
The staying power of Nintendo, despite all of the changes in the gaming industry over the past few decades, makes it one of the best video game stocks to own.
How to invest in video game stocks
- Open your brokerage app: Log in to your brokerage account where you manage your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Benefits and risks of investing in video game stocks
- The global popularity of video games will likely continue to grow in the coming decades, providing leading game publishers with many opportunities to reach new players and expand sales in both developed and emerging markets.
- While not all video game companies will continue to produce popular franchises, those that do have opportunities to deliver strong sales and earnings performance.
- The video game industry is a hit-driven business, and gaming companies can see substantial valuation declines if key titles underperform.
Should you invest in video game stocks?
Growth in the video game market has slowed in recent years, and there are big questions about the outlook for the broader industry. Global growth in the category has decelerated recently, and the rise of artificial intelligence (AI)-generated content creation tools could present challenges for many players in the space.
On the other hand, it remains to be seen how the rise of AI will affect top companies in the video game industry. AI content-generation tools could allow top developers to reduce production costs, and top companies with strong brands, infrastructure, and distribution advantages could benefit from these new tools. Investors should be selective when investing in video game stocks, but the category has the potential to produce big winners.
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FAQ
Video game stocks FAQ
About the Author
Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Microsoft and Take-Two Interactive Software. The Motley Fool recommends CD Projekt and Nintendo. The Motley Fool has a disclosure policy.
