Are video game stocks good?

Video game stocks can make sensible portfolio additions for investors seeking exposure to the interactive entertainment industry. Monetization and engagement trends in the video game industry are currently stronger than in almost any other entertainment medium, and top gaming companies could deliver big wins for long-term investors.

What factors influence the performance of video game stocks?

Like almost any other stock, the performance of video game stocks is shaped by the sales and earnings performance of the underlying companies. Because the video game industry is a hit-driven business, the performance of key titles tends to determine whether the valuations of these companies go up or down.

Do video game stocks pay dividends?

While some video game stocks pay dividends, the industry is probably not the best starting point for investors who are seeking reliable dividend payouts. Dividend yields across the industry tend to be relatively low, and the cyclical nature of gaming release cycles makes it more difficult to support dividends with earnings and support dependable payout growth.

What are some common ETFs for investing in video game stocks?

Investors interested in gaining exposure to the video-game industry through ETFs have multiple high-quality funds to choose from.VanEck Video Gaming & Esports ETF (NASDAQ: ESPO) is a fund that consisted of 27 holdings with exposure to the video-game industry and had an expense ratio of 0.55% in August 2026. It's constructed to mirror the total return of the MVIS Global Video Gaming and eSports Index.GlobalX Video Games & Esports ETF (NASDAQ:HERO) has an expense ratio of 0.5% and holds 40 gaming and gaming-adjacent stocks. This ETF is built to track the price and yield performance of the Solactive Video Games & Esports Index.Amplify Video Game Leaders ETF (NYSEMKT:GMR) carries a 0.59% expense ratio, holds 23 stocks, and aims to replicate the performance of the VettaFi Video Game Leaders Index.

What factors drive volatility in video game stocks compared to broader markets?

The video game market tends to be highly hit-driven. The performance of leading stocks in the category depends heavily on each company's landmark titles. In addition to performance for blockbuster releases, valuation trends for leading video game companies are also shaped by the market's appetite for investment in the broader entertainment industry.

Best Video Game Stocks for 2026 and How to Invest

5 Best Video Game Stocks for 2026 and How to Invest

By Keith Noonan – Updated Aug 25, 2026 at 4:27 PM EST | Fact-checked by Parker Hicks

Key Points

Capcom thrives with hit games like Resident Evil, maintaining strong investor returns.
Take-Two excels with Grand Theft Auto, fueling rapid valuation growth.
Sony leads in gaming with popular PlayStation titles and services.

Video game stocks are equity positions in companies that have substantial exposure to the video game industry. The video game industry is a large, growing sector with significant long-term expansion potential. While performance for leading companies in the space tends to be hit-dependent and somewhat cyclical, the future looks bright for some top players in the industry.

Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Capcom (OTC:CCOEY)	$13.34	$11.1 billion	1.06%
Take-Two Interactive Software (NASDAQ:TTWO)	$233.45	$43.6 billion	0.00%
Microsoft (NASDAQ:MSFT)	$496.37	$3.7 trillion	0.74%
CD Projekt (OTC:OTGLY)	$16.05	$6.5 billion	0.00%
Nintendo (OTC:NTDOY)	$13.84	$64.0 billion	2.45%

1. Capcom

OTC: CCOEF

Capcom

Today's Change

(0.00%) $0.00

Current Price

$24.00

Key Data Points

Market Cap

$10B

Day's Range

$24.00 - $24.00

52wk Range

$16.45 - $28.50

Volume

Avg Vol

21.1K

Gross Margin

58.11%

Dividend Yield

1.22%

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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 latest Resident Evil games have been big hits, Monster Hunter World has now sold more than 30 million copies across different platforms, and its 2026 hit Pragmata shows that the game maker can still serve up hit new IPs. The company's ability to tap into its library of classic games and series and also create successful new properties 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.

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2. Take-Two Interactive

NASDAQ: TTWO

Take-Two Interactive Software

Premium Feature

Moneyball Superscore

66/100

Today's Change

(0.22%) $0.52

Current Price

$233.45

Key Data Points

Market Cap

$44B

Day's Range

$232.48 - $241.29

52wk Range

$187.63 - $265.94

Volume

2.2M

Avg Vol

2.5M

Gross Margin

54.56%

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Take-Two Interactive's valuation has grown rapidly over the last decade due to stellar performances by its core franchises. Grand Theft Auto -- published by Rockstar Games in which Take-Two is the majority owner -- 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. Sony

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NYSE: SONY

Sony Group

Premium Feature

Moneyball Superscore

75/100

Today's Change

(0.29%) $0.07

Current Price

$24.12

Key Data Points

Market Cap

$141B

Day's Range

$24.05 - $24.33

52wk Range

$19.32 - $30.34

Volume

3.3M

Avg Vol

5.3M

Gross Margin

31.79%

Dividend Yield

0.66%

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Sony is a leading player in the gaming industry, and it counts on its video game business to be a crucial performance driver. The company also operates music and filmed entertainment units, and its imaging and sensing solutions has the potential to see strong growth in conjunction with machine vision trends, but its gaming business is its largest revenue contributor by a substantial margin.

In addition to being responsible for the hugely successful line of PlayStation consoles, Sony also owns and operates internal game development studios that are responsible for hit series including The Last of Us, God of War, and Grand Turismo. The company also generates subscription revenue from customers who use its PlayStation Plus online gaming service. Sony's strong track record in gaming and heavy focus on the industry make it a top candidate for investors seeking exposure to the space.

4. CD Projekt

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OTC: OTGLY

CD Projekt

Today's Change

(-1.93%) $-0.32

Current Price

$16.05

Key Data Points

Market Cap

$6.5B

Day's Range

$16.02 - $16.83

52wk Range

$14.16 - $20.50

Volume

25K

Avg Vol

25K

Gross Margin

81.12%

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CD Projekt is a Poland-based games developer and publisher that has delivered some big hits over the last decade. While the company's Cyberpunk 2077 got off to a bit of a rough start following its 2020 launch, CD Projekt has done an impressive job of fixing issues that hindered the title at launch and turned it into a consistent performance driver.

CD Projekt is also responsible for The Witcher -- one of the most successful role-playing game franchises over the last 10 years. With a new Witcher title on the horizon, CD Projekt could be poised for a new growth phase.

5. Nintendo

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OTC: NTDOY

Nintendo

Today's Change

(-0.22%) $-0.03

Current Price

$13.84

Key Data Points

Market Cap

$64B

Day's Range

$13.82 - $13.98

52wk Range

$10.18 - $24.29

Volume

630.8K

Avg Vol

3.6M

Gross Margin

44.38%

Dividend Yield

2.45%

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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 156 million units worldwide since its launch in 2017, and the Switch 2 system has seen very solid sales performance following its release in 2025.

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 buy video game stocks

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
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.

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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.

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Methodology: How these stocks were chosen

In order to be included on this list of best video game stocks to buy, each company had to have gaming as its largest source of revenue. Owning valuable intellectual properties and having a proven track record of delivering commercially successful releases were also criteria. Because the gaming industry is hit-driven and has elements of cyclicality when it comes to performance, consistent annual profitability did not need to be included, but long-term financial performance, valuation profiles, and growth opportunities were considered in selecting the stocks.

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 recently decelerated, and the rise of artificial intelligence (AI)-generated content creation tools could pose 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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Video game stocks FAQ

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About the Author

Keith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.

TMFNoons

Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Nintendo and Take-Two Interactive Software. The Motley Fool recommends CD Projekt. The Motley Fool has a disclosure policy.

5 Best Video Game Stocks for 2026 and How to Invest

Key Points

Top video game stocks in 2026

1. Capcom

Key Data Points

2. Take-Two Interactive

Key Data Points

3. Sony

Key Data Points

4. CD Projekt

Key Data Points

5. Nintendo

Key Data Points

How to buy video game stocks

Benefits and risks of investing in video game stocks

Methodology: How these stocks were chosen

Should you invest in video game stocks?

Related investing topics

5 Best Entertainment Stocks for 2026 and How to Invest

4 Best Media Stocks for 2026 and How to Invest

12 Best 5G Stocks for 2026 and How to Invest

3 Best Tech Stocks to Buy in 2026 and How to Invest

Video game stocks FAQ

Are video game stocks good?

Are video game stocks good?

What factors influence the performance of video game stocks?

What factors influence the performance of video game stocks?

Do video game stocks pay dividends?

Do video game stocks pay dividends?

What are some common ETFs for investing in video game stocks?

What are some common ETFs for investing in video game stocks?

What factors drive volatility in video game stocks compared to broader markets?

What factors drive volatility in video game stocks compared to broader markets?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

3. Sony

Key Data Points

4. CD Projekt

Key Data Points

5. Nintendo

Key Data Points

How to buy video game stocks

Benefits and risks of investing in video game stocks

Methodology: How these stocks were chosen

Should you invest in video game stocks?

5 Best Entertainment Stocks for 2026 and How to Invest

4 Best Media Stocks for 2026 and How to Invest

12 Best 5G Stocks for 2026 and How to Invest

3 Best Tech Stocks to Buy in 2026 and How to Invest

Video game stocks FAQ

Are video game stocks good?

Are video game stocks good?

What factors influence the performance of video game stocks?

What factors influence the performance of video game stocks?

Do video game stocks pay dividends?

Do video game stocks pay dividends?

What are some common ETFs for investing in video game stocks?

What are some common ETFs for investing in video game stocks?

What factors drive volatility in video game stocks compared to broader markets?

What factors drive volatility in video game stocks compared to broader markets?

Key Data Points

Top video game stocks in 2026