Investing in esports and gaming companies in 2025: Does it make sense?

Interest in esports and gaming has boomed over the last few years due to high-speed internet, affordable equipment, and the potential for bumper earnings.

There are more than three billion gamers across the world, including thousands of professionals earning a full-time living from their skills. Our guide goes through investing in esports stock and more. 

The businesses serving this sector range from multi-billion-dollar corporate powerhouses to exciting start-ups that are full of ambition.

But does this interest translate into investment opportunities? Can you make money from this sector, or are there too many pitfalls?

In our guide, we look at the key trends, assess the pros and cons of getting involved, and highlight some of the best esports stocks to buy.

No one can deny that gaming has been one of the biggest success stories of the past decade and attracted fanatical players of all ages.

There are currently 3.4 billion gamers in the world – and this is set to hit 3.7 billion by 2027, according to Newzoo’s latest Global Games Market Report.

Asia Pacific leads the way with 1.8 billion players, followed by 559 million in the Middle East & Africa, 454 million in Europe, 355 million in Latin America, and 244 million in North America.

The total market is currently worth $187.7 billion but is expected to continue growing at around 3.1% per year and reach $213.3 billion by 2027.

Key trends include cross-platform releases, the opening up of the mobile app ecosystem, and the ongoing growth in generative artificial intelligence.

Many of the world’s biggest companies, including Microsoft, Tencent, Sony, and Nintendo, are involved, along with a dizzying array of smaller, innovative names.

At the heart of the global gaming market sits esports, the competitive arenas that are populated by thousands of professional players.

Esports has boosted the broader sector by attracting sponsorship deals from major brands, developing communities, and helping improve the quality of games.

The global esports market was valued at $2 billion in 2023 and is expected to hit $5.5 billion by 2029, according to a report from Research and Markets.

It noted that Twitch ruled more than half of the market, while other leading esports streaming platforms include YouTube Gaming, Afreeca TV, and Naver TV.

The entire esports area has grown from a niche hobby into a billion-dollar industry, with players and clubs redefining competitive gaming, according to a report from PwC.

“Their influence extends beyond the game, shaping the industry’s structure, business models, and fan engagement,” it stated, noting Saudi Arabia is at the centre of this growth.

“With major investments, government-backed initiatives, and local talent making an impact on the global stage, the Kingdom is positioning itself as a key esports hub,” it added.

Largest esports companies by market capitalisation, as of August 2025.

Source: Companiesmarketcap

There are a number of ways to invest in this area. You’ve got esports teams, video game developers, and numerous firms providing the technology required.

The good news is you can buy esports stocks in all of these sub-sectors, although it might be wise to think beyond the relative handful of quoted esports teams.

Many of the most profitable teams are still in private hands and have wealthy backers, meaning their shares aren’t traded.

Unfortunately, life as public companies hasn’t been great for the floated teams in recent years, with stock prices having fallen severely.

For example, Ninjas in Pyjamas was one of the original pro esports teams that started operating in 2000, during the early days of Counter-Strike.

Its parent company, NIP Group, which also operates eStar Gaming, a mobile esports brand, went public a year ago, but its stock price has since fallen 85% to just $1.90, as of August 1, 2025.

So, which are the esports investments with the most potential? Is it the biggest firms or those with active esports teams? 

What about esports betting stocks?

Here we have selected five companies that could be worth considering. Some are classified as esports businesses, while others have a slightly wider remit.

The Chinese tech giant is the world’s largest esports business with a market capitalisation of $645 billion, as of August 2025.

Its portfolio of popular games, which includes Honor of Kings and PUBG Mobile, helped push total annual revenues to RMB660.3 billion ($91.9 billion) in 2024. 

The stock is currently rated a ‘strong buy’ according to the views of two Wall Street analysts, compiled by MarketBeat.

Their consensus view is that the share price could rise almost 27% to $88 over the coming year, although it’s worth remembering that their predictions may be wrong.

Tencent Esports, which was established in late 2016, is the company’s event operator and has organised tournaments in more than 90 countries.

It’s currently involved in the management of several influential gaming leagues in China. They include the League of Legends Pro League.

Overall, Tencent’s sheer size makes it difficult to ignore, although there is always the looming possibility that the Chinese government may want more control over its business interests.

Investors in Take-Two Interactive, the US-based video game company, have seen its stock price rise almost 50% over the past year.

This is largely to do with the upcoming release of the latest installment of its hugely popular Grand Theft Auto franchise.

However, this isn’t its only game. NBA 2K, PGA Tour 2K, and Red Dead Redemption are among the others on its list.

Take-Two develops and publishes a variety of products through Rockstar Games, 2K, and Zynga. These are designed for consoles, PC, and mobile.

While it doesn’t have an esports team, it co-owns and operates the NBA 2K League with the National Basketball Association (NBA) itself.

TTWO stock is rated a ‘buy’, according to the views of 22 Wall Street analysts, compiled by MarketBeat. Their consensus is that the price could rise almost 5% to $234.05 over the coming year.

Investors have had to keep their nerve this year with the EA stock price initially plummeting on the back of a miserable trading update.

However, shares have since recovered to a degree and stood at $156.26 as the market closed on August 1, 2025. This is almost 5% ahead of where they were a year ago.

The company is particularly well known for its EA SPORTS FC, Madden NFL, and Need for Speed brands, which have a global following.

Almost 10 years ago, the company launched the EA Competitive Gaming Division (CGD), with the aim of creating “highly engaging competitive experiences” with its games.

Positives for EA include the fact that it has the rights to some hugely popular brands, reliable revenue streams, and plenty of experience.

On the downside, it also relies on a relatively small number of games and depends on the continual renewal of licensing agreements.

EA stock is currently rated a ‘hold’, based on the views of 26 analysts, compiled by MarketBeat. Their consensus view is that the share price could rise 5% to $164.21 over the coming year.

Few companies in the world are better known than the tech giant that was co-founded by Bill Gates back in the mid-1970s.

As well as its presence in personal computers, Microsoft is also a major player in the gaming and esports world through its Xbox brand and other acquisitions.

In October 2023, it completed the $68.7 billion purchase of Activision Blizzard, which is behind many leading franchises, including Call of Duty.

Activision’s professional gaming interests include the Overwatch League, the Call of Duty League, Hearthstone® Masters, and the World of Warcraft® Arena World Championship.

The consensus view of 32 Wall Street analysts, compiled by MarketBeat, is that the stock price may rise 8.3% over the next 12 months to $555.86.

They also rate the shares as a ‘moderate buy’, although the price they’re currently at means investors would need deep pockets to secure a meaningful holding.

The US company’s technology has helped change the face of competitive gaming – and its investors have reaped the rewards.

NVDA stock has soared 1,584% over the past five years. The performance has catapulted it to being the world’s largest company with a $4.29 trillion market capitalisation.

However, the market isn’t convinced that there’s much potential upside in the stock price, which stood at $179.27 on August 1, 2025.

It could nudge up 1.54% to $182.03 over the coming year, according to the consensus views of 42 Wall Street analysts, compiled by MarketBeat. They rate it as a ‘moderate buy’.

The company, which was founded back in 1993, designs graphics processing units to enhance the experience on computing platforms.

In late May 2025, the company reported record first-quarter revenue of $44.1 billion, up 69% from a year ago and 12% higher than the previous quarter.

Any sector that’s growing rapidly is worth considering – especially one that’s at the very forefront of technological innovation.

However, you need to be aware of the risks. There are no guarantees when it comes to investing, so you must only commit what you can afford to lose. 

Companies can quickly go from being stock market darlings one minute to virtual pariahs for missing earnings targets or facing stiff competition from a new rival.

There are certainly pros and cons when it comes to investing in the gaming universe, according to Danni Hewson, head of financial analysis at AJ Bell.

She told Esports Insider: 

Hewson pointed out that games had come a very long way since those first clunky consoles with lagging graphics.

“People can play them wherever they are thanks to the minicomputers which seem surgically attached to most of our hands and advertisers and sponsors have already realised that this genre is as important as mainstream sports,” she said.

However, there are downsides. “Competition is fierce and with big companies like Microsoft slicing their gaming workforce in order to cut costs you can understand why there is such a huge amount of consolidation going on in the sector,” she added.

The good news is there are plenty of options for those looking at how to invest in esports stocks, depending on their goals and risk appetite.

You can buy the shares of individual companies listed on global markets or opt for an investment fund that pools the cash of many investors and uses it to buy stocks.

The first option gives you pure access to a particular company by buying its shares from a stockbroker. These days, there are plenty of online brokers charging relatively low fees.

If the stock price subsequently rises, then the value of your holding will increase. However, you must remember that the opposite is also true. You could easily lose everything you’ve invested.

The final decision on the best esports stocks to buy must come down to your analysis of an individual company, as well as your understanding of the sector and economic backdrop.

It’s also possible – and sensible – to start investing on a relatively small scale and consider larger transactions when you are more comfortable with trading.

An alternative to buying shares is considering an Exchanged Traded Fund (ETF). These are baskets of securities that are traded on stock markets via brokers. 

They are a popular way to track specific markets cost-effectively and get exposure to a particular market, industry, or sector.

For example, the VanEck Video Gaming and eSports UCITS ETF is one such product that has holdings in leading sector names such as Tencent, Electronic Arts, Nintendo, and Roblox.

The third option is buying into a mutual fund that pools the money of numerous investors and uses it to buy shares in a variety of companies.

The focus will be on finding one with plenty of gaming-related stocks, so you’ll need to do your research and be clear on the portfolio’s aims and ambitions.

Whether you should invest in esports stocks depends on your financial goals, views on the sector, and attitude to risk.

There’s no doubt that this is an exciting, growing area, but revenue increases don’t always result in rising share prices.

Even hugely successful businesses may see their stock price stagnate if analysts either believe the company is already fully valued or that there are few catalysts for future growth.

It also makes sense to widen your focus to include companies likely to benefit from esports, such as those producing the technology that makes the games possible.

Finally, a word of warning: No one can predict the future with any degree of certainty, so only invest what you can realistically afford to lose if everything goes wrong.