The TL;DR
Why invest in gaming
- Huge growth of global gaming market in past decade thanks to expansion of mobile gaming and the COVID-lockdown and predicted future growth
- Benefits of gaming can include improved motivation, health and education
- There are 2 dedicated gaming ETFs on the ASX, VanEck Video Gaming and Esports ETF (ASX: ESPO) and Betashares Video Games and Esports ETF (ASX: GAME)
- Playside Studios (ASX: PLY) is the largest gaming company available on the ASX
Ethical issues
- Many games have in-app rewards that mimic addiction psychology of gambling and ESPO invests in Aristocrat Leisure which makes slot machines
- GAME and ESPO invest in Roblox which been accused of failing to protect children who game online
- Industry culture of sexual discrimination
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If you love games like NBA2K, Red Dead Redemption and GTA and think “someone is making a lot of money off this”, you’re right. Gaming - including traditional consoles, online, e-sports and mobile - has grown steadily since the 70s but was turbocharged during COVID lockdowns.
Today, there are over 3.6 billion gamers globally, accounting for over 60% of the online population and a 4.4% increase year on year. The gaming market generated an estimated US$188.8 billion in revenue in 2025. Both of these numbers are predicted to keep climbing.
On February 4th in the middle of the night in Australia, Take Two, confirmed they’re on track to release Grand Theft Auto VI by November this year which they expect to boost revenue. Some gaming YouTubers tuned into the earnings call, which is unusual as most of them are full of financial analysts. But some games have so many fans and sub-cultures that they can become big events.
It’s pretty fun to invest in companies that make or do the things you love. Given lots of us love gaming, SIX looked at the ways ethical investors can invest in gaming and what issues are at play.
There are two Gaming ETFs on the ASX (if you’re asking “WTF is an ETF?” then read this blog)
Both ETFs focused on benefitting from the growth of gaming globally by investing in a mix of traditional gaming software developers, mobile app developers, internet service providers, and hardware manufacturers, providing exposure to a broader slice of the gaming industry and supply chains.
But what are the ethical issues at play here?
Huge Growth of Global Gaming Market in Past Decade
The number of gamers has steadily increased since the 1970s, but the pandemic spurred unprecedented growth in gaming, streaming, and esports. Today, there are over 3.6 billion gamers globally, accounting for over 60% of the online population and a 4.4% increase year on year. The gaming market generated an estimated US$188.8 billion in revenue in 2025. Both of these numbers are predicted to keep climbing.
Take-Two Interactive, publisher of Grand Theft Auto VI, and Nintendo, creators of the fastest-selling Nintendo Switch 2 console, are among those poised for a strong year. As we enter the ninth generation of consoles, we see advances in technology and rising prices. Mobile gaming has surged, representing 55% of global revenue compared to console (24%) and PC (21%) gaming. Tencent, a leading holding in GAME, produced the world’s most popular mobile game, Honour of Kings.
Benefits of Gaming
Media attention often overlooks the benefits of gaming. Research indicates that gaming, when moderated, can improve neuroplasticity, memory, motor skills, mental health, and may even lower dementia risk.
The “gaming for good” movement has gained traction, with organizations like Humble raising over US$250 million for social impact. The Playing for the Planet Alliance, initiated by the United Nations, aims to harness gaming's educational potential and encourage sustainability efforts.
Culture of Sexual Discrimination
Although nearly half of gamers are women, the workforce remains male-dominated. A 2024 survey found only 31% of developers identified as women or non-binary. Despite improvements in diversity, equity, and inclusion (DEI) measures following lawsuits about toxic workplace environments, the industry's reputation deters potential female developers.
When Is Gaming Gambling?
Unlike GAME, ESPO significantly invests in Aristocrat Leisure Ltd, an Australian firm involved in online gambling. While Aristocrat describes its growth in real-money gaming as responsible, advocates criticize this as dangerous. In 2024, research revealed that Australians lose over $32 billion annually on legal gambling, the highest per capita globally.
Child Safety
In 2023, parents filed a class action against Roblox after children lost money on gambling websites. Roblox contends it isn't liable for user actions on external sites. The company has faced allegations of inadequate safety measures that enable exploitation.
Following scrutiny, Roblox pledged new safety features and expanded parental controls in 2024, yet advocacy groups soon found children still exposed to inappropriate content. Although Roblox did not fall under Australia’s social media ban for those under 16, it agreed to implement age verification for chat features. Experts argue this is inadequate for ensuring child safety globally.
If all that puts you off investing in an ETF but you still want to invest in gaming, Playside Studios (ASX: PLY) is one of Australia’s largest video game developers. It’s one of the only Australian game companies with over 50 employees and the largest publicly listed video game company on the ASX. It makes indie games like Thrive available on Steam.
Whether you decide to invest in gaming is up to you (and you should consider your personal circumstances before doing so) but this summary should help you level up your knowledge of the industry.
Open a SIX account today!
Disclaimer: SIX has no current affiliations or relationships with any of these ETFs. Any mention or opinion of a company is not a recommendation to buy or sell.
Information in this blog is general in nature only. No individual needs or objectives were considered when preparing and communicating this information. You should consider seeking personal financial advice before investing to ensure you can make informed decisions that are right for you.
