More than one in every four people globally reportedly play games on their mobile devices, helping grow the video game market into an almost $US180 billion entertainment juggernaut.

That incredible valuation means the video game sector is now more valuable than movies and North American sport combined.

The bulk of 2020’s revenue growth came from mobile gaming, which is estimated to have lifted 24% through the year.

Source: Marketwatch.com 

The Australian video game market alone is now valued at $3.4 billion, with 31.7% of all video gaming revenue in the country coming from the mobile segment, (as at 2019).

It’s a big and fast-growing business, but PlaySide Studios (ASX: PLY) CEO Gerry Sakkas said investors shouldn’t see it as ‘the next big thing’ – because it’s been turning profits for years already.

“I think one of the main things with gaming is, say if you’re comparing it to other tech sectors on the ASX, gaming has been around for decades,” Mr Sakkas told Stockhead. 

 

“You’ll see articles saying gaming is going to be the next big thing — well, it’s already been the big thing. Even across esports, all of these industries have been making more money than movies and music for years”, he further told Stockhead.

Mr Sakkas added that video games are unlike many other tech sectors in that a popular new title won’t necessarily cannibalise the market – instead it could bring more consumers in and grow the industry as a whole.

“For example, titles like Fortnite or Minecraft got more people playing mobile games. It brings more people to market who then want to play the next big title that comes out,” he said.

 

“In that sense big games benefit everyone. And I still think we’re yet to see the peak of that market where one huge game title dominates everything.”

PlaySide has joined the game

Mr Sakkas’ comments come following the 17 December listing of PlaySide Studios on the ASX.

The Company, which was co-founded in 2011 by Mr Sakkas and friends Mark Goulopoulos and Aaron Pasias, followed his departure from EA Games’ Melbourne-based Visceral Studios and is now one of the largest independent games studios in Australia.

PlaySide Studios has produced more than 50 games, including over 20 original titles and a handful of games for major Hollywood studios including Disney, Warner Brothers, and Universal.

Under the IPO offer, the company raised $15 million through the issue of 366.5 million shares at 20 cents each.

Within hours of floating the share price soared, closing their first day on the market at 31 cents and continuing that upward trend to hover between 40 and 43 cents mark since 5 January.

To stay updated with the latest company news and announcements, please register your details on Playside Studios’ investor centre.

Reach Markets have been engaged by PlaySide Studios to assist with private investor management.

Past performance is not a reliable indicator of future performance.

Sources:

• Mobile gaming spins eye-watering revenues — can these ASX players hit the jackpot?
• Video games are a bigger industries than movies and North American Sports combined, thanks to the pandemic
• Gaming Is Now Worth $3.4 Billion In Australia
• ASX announcement – 17 December 2020
• Playside Studios website
• Former Visceral Games Developer Opens New Studio