Game Company Investing

[Tenchimo]

I know we are all very knowledgable people on this board when it comes to games. Anyways, I was wondering if anyone actually invests, besides in hardware and software, in videogame stock? If so, what are some good videogame stocks to look at? Keep in mind, I would prefer american stock.

I figure since videogame sales haven't taken a hit despite our current recession, it would be a good idea to actually make some money off gaming. Hell, its bigger than the movie biz.

Currently, I've been looking at sega, I figure in the next couple years they are going to be making alot of money and they are a good potential investment choice. Anyways, am I the only one interested in this sort of thing? If not, then can someone supply some info on stocks to look out for in the videogame world? Thanks.

[Master]

OK, I've got good news, bad news, and worser news.

The good: In small amounts, videogame company stocks are great. You should buy them and ask your financial institution for the actual certificates, they look cool and are absolutely frame-worthy.

The bad: There is no money to be made in the US from game companies, as most of the "big movers" are either small divisions of larger companies (Sony, Microsoft...) or they are in japan and will kill you on the trading fees.

The worser: The time to really make money is over. Less and less videogame companies, especially the small ones, are going public with new IPOs. That means the only way to make a profit is to buy low, sell high based on your knowledge of what the company has planned. And chances are, if you know, so does everybody else.


In my personal experience, game stock trading is fun. Don't tie up too much money in it, just enjoy owning a larger peice of gaming.

PS: Before the HUGE launch of the dreamcast, I decided to buy LOTS of SEGA stock. THen they had a HUGE launch and I sold my stock a week later. I made about 900 bucks, but in retrospect it was way to risky for my tastes. Stick to small time buckeroo.

[Master]

As for buying SEGA stock:

Only put a lot of money into it if you plan on holding onto it for SEVERAL YEARS. Then wait for a big announcement to unload it for profit. Like a return to profitability, or a return to console making. Whatever.

Just don't think you have more knowledge than anybody else just cause you know about games. The entertainment side, and the business side are completely different beasts.

Happy trading

[Yoshi]

You guys will get a laugh out of this. Back in 1994, I was taking AP Economics in high school. For the stock market sim game, I dumped my whole team's wad into Atari stock. The Jaguar launched, the stock shot up, we sold, the stock plummeted. We won the regional contest. Atari was not so lucky.

[Captain Vegetable]

Originally posted by Yoshi
You guys will get a laugh out of this. Back in 1994, I was taking AP Economics in high school. For the stock market sim game, I dumped my whole team's wad into Atari stock. The Jaguar launched, the stock shot up, we sold, the stock plummeted. We won the regional contest. Atari was not so lucky.

I laughed when I read that.