INTHEGAME COPYPORTFOLIO - AN ETORO INVESTMENT STRATEGY
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InTheGame CopyPortfolio™ An eToro Investment Strategy
3 6 9 12
Content
The Video Game Online Future Investing In The
Industry Is Booming Gaming Trends Gaming Industry
2
The Video Game Industry Is Booming.
Having evolved from a niche hobby to a global, mainstream phenomenon in multiplayer gaming and mobile gaming, and the monumental growth of e-sports,
recent years, gaming is now, without doubt, one of the world’s favourite forms video game sales look set to explode higher. Forecast to grow at an annualised rate
of entertainment. Today, the video game industry brings in more revenue than of 9% between now and 2023, the global video game market appears positioned
the movie and music industries combined. for high growth.
Video games are already generating extraordinary sales figures. For example, For investors, the increasing popularity of gaming and the advances in gaming
Fortnite, which has taken the world by storm in recent years, generated technology are creating a number of exciting opportunities, and for this reason,
revenue of $1.8 billion in 2019 alone, while Call Of Duty: Black Ops 4 made eToro has launched its InTheGame CopyPortfolio — a fully allocated thematic
over $500 million in its first three days in 2018. investment portfolio focused specifically on gaming industry related stocks.
However, this could just be the beginning of a long-term growth story. With Designed for long-term investors, the InTheGame portfolio offers exposure to
gaming set to rise to a whole new level in the years ahead, due to advances in some of the most exciting online gaming and e-sports stocks in the world today,
virtual reality and augmented reality technology, developments in interactive while the diversified nature of the portfolio also minimises risk.
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3
Gaming industry
$525 billion The statistics $3 billion
The projected size of the global The total expected revenue for
video game market by 2023 the global e-sports market by
2022
9%
The forecast annualised growth 23.4%
rate of the global video game The forecast annualised growth
market between 2020 and 2023 rate of the global e-sports
market between 2019 and
2023
250 million $211 million
The number of gamers
playing Fortnite in 2019 The total amount of e-sports
prize money awarded in 2019
60% 100 million
The number of people that
The percentage of global
video gaming revenue 1.3 billion watched the League of
Legends World Championship
generated from mobile The number of hours people spent in 2019
gaming in 2019 watching video games on live
streaming sites in January 2020
4
Gaming industry
Major events
October 2019
Microsoft launches a
April 2012 beta version of its cloud-
based gaming service,
Candy Crush Saga is
Project xCloud.
launched on Facebook and is
November 2015 September 2017
downloaded over 10 million
times in its first month. Activision Blizzard Epic Games releases
acquires Candy Crush Fortnite Battle Royale
Saga developer King and the game attracts
June 2016
Digital Entertainment for over 250 million players
March 2014 $5.9 billion. China's Tencent Holdings
in the next 18 months. November 2019
Facebook pays $3 billion buys Clash of Clans maker
to acquire virtual reality Supercell for $8.6 billion. Google launches its
(VR) startup Oculus VR. video game streaming
October 2018 service, Google Stadia.
Activision Blizzard releases
Call Of Duty: Black Ops
4 and the game takes in
$500 million in its first
July 2016 three days.
August 2014
Niantic releases
Amazon buys video
augmented reality (AR)
game streaming site
game Pokémon Go and
Twitch for $970 million.
it is downloaded over
500 million times by the
end of the year.
5
Online Gaming
a whole new world of peer-to-
peer gameplay
The video game industry is one of the fastest-growing entertainment
industries in the world right now. In recent years, the number of
gamers across the world has increased significantly as peer-to-peer
(P2P) gaming technology has improved the gaming experience. Here’s
a closer look at what’s driving the powerful growth of the industry.
6
Live Streaming
Another big trend we’re seeing in the video game space at the moment is live
streaming on platforms such as Twitch and YouTube Gaming.
In the same way that a lot of people love watching their favourite reality TV
stars on television, a huge number of people enjoy watching well-known
gamers play video games, and every day millions of people around the world
tune into streaming sites to watch their favourite gamers play games such as
The Shift Towards Online Multiplayer Games Fortnite and League of Legends.
Streaming has surged in popularity in recent years, and believe it or not, there
Multiplayer games are nothing new. Even 1980s games such as Nintendo’s
are now more people watching gaming video content than the number of
Mario Bros featured multiplayer mode. However, due to advances in
technology, gaming has undergone a massive shift in recent years and the people who watch HBO, ESPN, Netflix, and Hulu combined.
main focus for many games now is online multiplayer gaming.
This move to online multiplayer gaming has been a game-changer for video
game fans, as gamers today can play against their friends and other players
around the world over the Internet. Ultimately, this style of peer-to-peer online
gameplay is often far more addictive than traditional single-player gaming, and
this social aspect of the game explains why games such as Fortnite have gone
viral.
7
E-sports
Linked closely to live streaming is the massive growth of ‘e-sports’ — video
game competitions that are treated as a professional sport.
Over the past few years, the popularity of e-sports has increased significantly,
and it is now a multi-billion dollar industry spanning every corner of the
globe. Tournaments — which are now broadcast on Sky Sports and ESPN —
continually pack out stadiums such as New York’s Madison Square Garden
and London’s SSE Arena.
In 2019, e-sports were watched by over 450 million viewers worldwide with
industry revenue amounting to roughly $1 billion. However, with an ever-
increasing fan base, and significant amounts of money flowing into the industry
in the form of advertising and sponsorships, this global phenomenon is only
going to get bigger.
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8
Future trends:
state-of-the-art technology will
elevate gaming to the next level
While gaming has come a long way over the last few decades,
what lies ahead looks really exciting. With technology
continuing to advance at a rapid pace, gaming could rise to a
whole new level in the next few years. Here’s a look at three
future gaming trends.
9Virtual Reality
Although virtual reality (VR) technology — which has a broad range of
applications including surgical training in the healthcare industry and the
development of autonomous cars in the auto/tech industries — has been
around for years now, we are now at a stage where the technology is really
taking off in terms of delivering full immersion and increased realism to gamers.
To date, Samsung, Sony, and Facebook have all released virtual reality headsets
that have been popular among gamers, yet, as the technology continues to
improve and prices fall, virtual reality is likely to become far more mainstream.
autonomous driving — is another niche technology that could have a big
Looking ahead, the market for VR gaming is projected to reach a value of $32.8
impact on the gaming industry in the years ahead.
billion by 2023, growing at an annualised rate of around 26% between now
and then.
Augmented reality gaming takes the gamer’s existing real-world environment
and creates a playing field within it by superimposing computer-generated
images on the user’s camera screen view of the real world.
Augmented Reality
Augmented reality games such as Pokémon GO have already captured the
world’s attention, but in the next few years we are likely to see plenty more
Augmented reality (AR) — which also has a number of exciting applications
of this style of gaming. The technology has created endless opportunities for
across many different industries including healthcare, education, and
gamers and developers.
10Mobile Gaming
Finally, we are also likely to see a huge boom in online mobile gaming in the
coming years. Already, around half of all gaming is mobile. Yet, the mobile
gaming market is the fastest growing category of game sales, and by 2021,
mobile gaming is expected to represent 60% of all gaming.
With the graphics capabilities of smartphones approaching the processing
power of traditional gaming systems, more and more players are likely to
bypass laptops and PCs and play games on their smartphones, meaning
mobile gaming could be a huge growth industry going forward.
11Investing in The Gaming Industry
When you consider the powerful growth of the online video gaming industry, Ultimately, owning a diversified portfolio of stocks is the most sensible strategy
and more specifically, the incredible growth of e-sports, it is not hard to see when aiming to profit from a growth story like this and for this reason, eToro has
the investment potential here. With the global video game and the global developed its InTheGame portfolio — a fully-allocated thematic investment
e-sports markets forecast to grow by 9% and 23% per year respectively over portfolio focused on gaming industry related stocks — to help clients gain
the next few years, the future looks promising. diversified exposure to this growth industry.
The world’s technology giants are scrambling to get in on the action. For Designed to provide long-term capital growth while minimising stock-specific
example, of the 15 acquisitions Microsoft made in 2018, seven were video risk, eToro’s InTheGame investment strategy offers an innovative exposure
game development studios. Similarly, Chinese technology group Tencent has to this exciting growth story.
made a number of notable moves in the video game space recently, such as
buying Clash of Clans maker Supercell for $8.6 billion and taking a significant
stake in Fortnite creator Epic Games.
Add InTheGame to your Watchlist
Your capital is at risk
eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets. Your capital is at risk. CopyPortfolios™ is a portfolio management product. CopyPortfolios™
should not be considered as exchange-traded funds, nor as hedge funds.
Zero commission means that no broker fee has been charged when opening or closing the position. Other fees may apply. For additional information regarding fees, click here.
12Resources:
https://lpesports.com/e-sports-news/the-video-games-industry-is-bigger-than-
hollywood
https://www.slashgear.com/fortnite-revenue-dipped-in-2019-but-it-was-still-
massive-02604991/
https://www.prnewswire.com/news-releases/global-gaming-market-revenues-
projected-to-exceed-525-billion-by-2023-300838290.html
https://www.technavio.com/report/global-video-game-market-industry-analysis
http://www.businessofapps.com/data/fortnite-statistics/
https://www.emarketer.com/content/esports-disrupts-digital-sports-streaming
https://www.marketwatch.com/press-release/esports-market-size-2020-global-
trends-industry-share-growth-drivers-business-opportunities-and-demand-
forecast-to-2023-2019-12-09
https://www.businessinsider.com/esports-ecosystem-market-report?r=US&IR=T
https://www.businessinsider.com/league-of-legends-world-championship-100-
million-viewers-2019-12?r=US&IR=T
https://win.gg/news/3387/these-are-all-of-the-biggest-esports-prize-pools-
from-2019
https://venturebeat.com/2020/02/12/january-2020-livestreaming-viewership/
https://www.businessinsider.com/facebook-actually-paid-3-billion-for-oculus-
vr-2017-1
https://www.bbc.co.uk/news/technology-28930781
https://en.wikipedia.org/wiki/List_of_most_expensive_video_game_acquisitions
https://en.wikipedia.org/wiki/Pokémon_Go
https://en.wikipedia.org/wiki/Nintendo_Switch
For more information regarding CopyPortfolios, https://en.wikipedia.org/wiki/Fortnite_Battle_Royale
http://www.vgchartz.com/article/393463/fifa-19-sells-an-estimated-43-million-units-
contact: copyportfolios@etoro.com
first-week-at-retail/
https://www.forbes.com/sites/erikkain/2018/10/18/call-of-duty-black-ops-4-made-
500-million-at-launch-but-theres-a-catch/#2d2870572f63
https://www.pcgamer.com/uk/more-people-watch-gaming-videos-and-streams-
than-hbo-netflix-espn-and-hulu-combined/
eToro (EUROPE) LIMITED
A company registered in the Republic of Cyprus. Registered number: ΗΕ 200585 https://www.roundhillinvestments.com/blog/esports-viewership-vs-sports
Corporate Address: KIBC 7th Floor,4 Profiti Ilias Street, Germasoyia, Limassol 4046 https://uk.reuters.com/article/us-videogames-outlook/global-esports-revenues-to-
top-1-billion-in-2019-report-idUKKCN1Q11XY
https://www.prnewswire.com/news-releases/global-virtual-reality-gaming-market-
eToro (UK) LIMITED 2018-2023-market-expected-to-grow-at-a-cagr-of-26-300709527.html
A company registered in England and Wales. Registered number: 07973792 https://www.androidcentral.com/mobile-games-account-60-global-gaming-
Corporate Address: 42nd floor, One Canada Square, Canary Wharf London E14 5AB www.etoro.com revenue-2021You can also read
