In this article we will take a look at the 15 most valuable gaming companies in the world.
The gaming industry has experienced significant growth recently. Gaming is no longer only for children as people can now experience high-level gaming experiences on their computers, their televisions and even on their phones. Generations have grown up with gaming as an important part of their life which has led to the boom in the gaming industry where many gaming companies are now enjoying explosive growth in revenues. Moreover, there are no signs that this growth is expected to stagnate any time soon. In 2015, there were about 2 billion video gamers worldwide. This number is expected to surpass to over $3 billion by 2023 according to the latest projections.
The coronavirus crisis also gave a huge boost to the gaming industry. From the start of the pandemic, with social distancing and work from home policies across the globe, people are looking for more indoor activities and gaming is one of them. China has emerged as one of the biggest gaming markets in the world in 2020, generating a revenue of more than $40.85 billion. The United States ranks second, taking in about $36.92 billion in revenues.
Most Valuable Gaming Companies
A huge portion of these revenues can be attributed to gaming console sales. With the introduction of the Xbox and the PS5, gaming companies are capitalizing on huge revenues. Perhaps the fastest-growing area of the gaming industry is mobile gaming. Mobile gaming revenues are expected to grow to almost $87.7 billion in the coming years.
Overall, the entire video gaming industry is showing promising statistics and it is expected to reach a value of over $200 billion by 2023, according to Juniper Research. The gaming renaissance is bringing huge returns for many development studios, game publishers and private individuals. Companies such as Sony and Microsoft are looking into new ways to tap into this growing industry which currently has 2.7 billion users worldwide. From developing new consoles to launching new services that can be enabled on multiple devices, the top gaming companies are leaving no stone unturned to capture as much of the market as possible. And as the smartphone, streaming and social media services are growing exponentially, they are on the right track. The new era of gaming is promising with groundbreaking visuals and enthralling real-time experiences.
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Here is a list of the top 15 most valuable gaming companies in the world that are shaping the video game industry every day.
15. Konami Holdings Corporation (TYO: 9766.T)
Revenue: $999.5 million via gamesutra
Valuation: $3.24 billion
Founded in 1969 in Osaka Japan, Konami is a renowned gaming company which is known mostly for its soccer simulator hit called Pro Evolution soccer. Konami not only works in the gaming niche but also owns several entertainment centers and casinos around the world. The company is also investing in healthcare and fitness. This Japanese conglomerate initially built arcade machines. However, recently it has undertaken the development of video game franchises such as Frogger, Super Cobra and Scramble. They have set their primary focus on the smartphone gaming niche. Some notable releases from the company include Castlevania, Silent Hill and Dance Dance Revolution. In 2020, it generated a gaming revenue of $999.5 million. The company ranks 15th in the list of the most valuable gaming companies in the world.
14. Roblox Corporation (NYSE: RBLX)
Revenue: $924 million in 2020
Valuation: $4 billion via pitchbook
Developed by the Roblox Corporation, Roblox is an online game platform and game creation system. It not only develops new video games but also allows its users to program and play games created by other Roblox users. The platform was released in 2006 and plays host to user-created games in different genres which are coded in a programming language called Lua. Roblox became a notable company in the gaming industry in 2010 and its growth has been further accelerated by the COVID-19 pandemic. Roblox has 37.1 million daily active users worldwide as of 2020.
13. BANDAI NAMCO Holdings Inc. (TYO: 7832.T)
Revenue: $1.976B via ycharts
Valuation: $4.74 billion
Another Japanese game development company that has made the list is Namco Bandai. Founded in 2005, the company has established itself by creating unique characters and developing interactive gaming franchises which are loved around the world. These include Pac-Man, Tekken, Ace Combat, Dark Souls and Tales etc. In 2020, it emerged as the third-largest gaming company in Japan in terms of revenue and valuation. The company also has licenses to many other media franchises such as Sword Act Online, Shonen Jump and Kamen Rider. Its most profitable game sold in 2020 was Dragon Ball Z: Kakarot which sold over 2 million copies worldwide. The company ranks 13th in our list of the most valuable gaming companies in the world.
12. Sega Sammy Holdings Inc. (OTC: SGAMY)
Revenue: $3.4 billion in 2020 via Games Industry
Valuation: $4.9 billion
Based in Tokyo, Japan, the SEGA Corporation is a multinational video game developer and publisher which has produced many popular game franchises such as Sonic the Hedgehog, Yakuza, and Total War. The company also develops other entertainment products such as toys and operates amusement arcades around the world. Sega has established itself as a leading contender in the gaming industry due to its own video game consoles and innovative games. Amidst the COVID-19 pandemic, Sega has experienced substantial increase in their packaged games sales as well, raising its revenue to $3.4 billion in 2020. Sega ranks 12th in our list of the most valuable gaming companies in the world.
11. Square Enix Holdings Co., Ltd. (OTC: SQNXF)
Revenue: $307 million in 2020 via technosports
Valuation: $5.52 billion via Yahoo Finance
Square Enix is a video game and entertainment conglomerate that is based in Japan. It ranks 11th in our list of the most valuable gaming companies in the world. It is best known for developing popular video game franchises such as Dragon Quest, Final Fantasy and Kingdom Hearts. In 2009, the company acquired Edios Interactive and published titles such as Tomb Raider and Just Cause to establish itself as a gaming giant. Apart from gaming, Square Enix is also in the merchandise and amusement industries. Its most notable games like Dragon Quest and War of the Visions are scheduled to be launched on iOS and Android by next year.
10. CD Projekt S.A. (OTC: OTGLY)
Revenue: $27.8 million in 2020 via pocketgamer
Valuation: $8.1 billion
CD Projekt ranks 10th in our list of the most valuable gaming companies in the world. It is a video game developer, publisher and distributer based in Warsaw, Poland. It was founded in 2004 and is now responsible for developing original and innovative games such as The Witcher series. The company began by translating major video-game releases into Polish. CD Projekt’s parent company merged with Optimus S.A. in 2009 to reorganize it into a publicly traded company. Optimus became the surviving entity and by 2017, it became the largest publicly traded video game company in Poland. By May 2020, CD project had a valuation of $8.1 billion which has made it the largest gaming company in Europe ahead of Ubisoft.
9. Ubisoft Entertainment SA (EPA: UBI.PA)
Revenue: $1.226 billion in 2020 via venturebeat
Valuation: $9.967 billion via ycharts
Ubisoft ranks 9th in our list of the most valuable gaming companies in the world. It was founded in 1986 by the Guillemot brothers in France. The company has over 40 studios worldwide and has emerged as a leading developer and producer of video games for different franchises. Its games provide interactive entertainment and services which has led to the popularity of many blockbusters such as Legion, Assassin’s Creed, Prince of Persia, and Wii Just Dance. The company’s history includes noteworthy acquisitions including Red Storm Entertainment and Blue Byte Software. Ubisoft has delivered a powerful comeback and sustained growth for all of its game franchises. The number of hours of games played on PC and consoles for the company increased from 2 billion in 2016 to 4.5 billion at the end of 2019.
8. Epic Games
Revenue: $965 million in 2020 via clutchpoints
Valuation: $17.3 billion via CNBC
Another California-based company that has made it to the list of the most valuable gaming companies in the world is Epic Games, which was founded in 1991. The company has becoming a leading contender in the gaming industry due to its popular game Fortnite which was also their most profitable game sold in 2020. Its battle royale game has now reached over 350 million players worldwide. The free-to-play model of the game has generated huge revenues for the company along with its other notable games such as Zombie Army. The company has attracted over 52 million new users in 2020 alone.
7. Take-Two Interactive Software, Inc. (NASDAQ: TTWO)
Revenue: $3.09 billion in 2020
Valuation: $ 17.51 billion via Yahoo Finance
Take-Two Interactive is based in New York and has become one of the most notable names in the gaming industry. It ranks 7th in our list of the most valuable gaming companies in the world. It has two divisions: Rockstar Games and 2K. They are responsible for some of the most popularized games in the world which have now become a cultural phenomenon such as Grand Theft Auto and NBA 2K. Its most recent video game success is Red Dead Redemption 2 which has earned praise for its attention to graphic and motion detail. In 2020, its most profitable game sold was the NBA 2K21.
6. Electronic Arts Inc. (NASDAQ: EA)
Revenue: $5.5 billion in 2020
Valuation: $39.68B via Yahoo Finance
Electronic Arts (EA) was founded in 1982 and has become one of the most valuable gaming companies in the world. Based in California, this gaming company has popularized immersive interactive entertainment through its video games. EA has developed both console and smartphone video games which have generated a sizeable revenue of $5.5 billion in 2020. Its most popular games include Cricket, and FIFA 2020 which was also the best-selling video game for the company in the previous year. Some more of its critically acclaimed video games include the Sims, Madden NFL, Need for Speed, Battlefield and EA Sports etc. EA SPORTS FIFA 20 recently hit 10 million players.
5. Nintendo Co., Ltd. (OTC: NTDOY)
Revenue: $11.2 billion via Forbes
Valuation: $49.7 billion
Nintendo is one of the oldest gaming companies in the world. Based in Kyoto, Japan, the company has established itself as an industry leader by producing iconic games such as Mario, Donkey Kong, Pikachu, Link etc. They have also developed a series of gaming consoles, the most notable being the Nintendo Switch, which is portable. Nintendo generated a revenue of $11.2 billion in 2020 which is driven by their best-selling game “Animal Crossing: New Horizons” as well as continued sales of their latest Nintendo Switch console.
4. Activision Blizzard, Inc. (NASDAQ: ATVI)
Revenue: $8.1 billion in 2020
Valuation: $71.52 Billion
Activision Blizzard was founded in 2008 by the merger of Activision and Blizzard Entertainment and is based in Santa Monica, California. The company generated over $8.1 billion in revenue in 2020 which is due to its interactive games that have gained popularity across the globe. Its most popular video game series, Call of Duty, with its latest installation Black Ops, is performing extremely well and was the most profitable game for the company in 2020. Throughout the last months of 2020, Call of Duty sustained over 100 million monthly players. Another popular, revenue-generating game for the company is the World of Warcraft whose sales have grown in the current pandemic. World of Warcraft’s player count is around 4.88 million as of 2020.
3. Sony Interactive Entertainment
Revenue: $18.5 billion in 2020 via Yahoo Finance
Valuation: $79.2 billion via Forbes
The Sony Corporation has a gaming subsidiary called the Sony Interactive Entertainment. It ranks 3rd in our list of the most valuable gaming companies in the world. Headquartered in San Mateo, California, the company has become best known for developing the PlayStation which is a line of gaming consoles. The most popular out of the series was the PlayStation 2 which sold over 157.68 million units globally. The company has brought in a revenue of $18.5 billion in 2020. About 40% of this increased revenue is driven by Sony’s latest console, the PlayStation 5. Some noteworthy games created by Sony include God of War, The Last of Us, Colossus and Uncharted.
2. Tencent Holdings Limited (HKSE: 0700.HK)
Revenue: $20.5 billion in 2020 via Reuters
Valuation: $134.6 billion
Tencent Games is the largest China-based gaming company in the world. They have a controlling stake in several game studios like Supercell, Riot Games and Grinding Gear Games. Their primary focus is on online and smartphone games. The company’s flagship game is called “Honor of Kings” which was one of the most profitable games sold in 2020. Tencent Games is on track to generate increasing revenues through advertising and branded virtual costumes in its video games. Its other popular games include PUBG Mobile which has consistently ranked on first place in China and across the world. It has reached 50 million players online.
1. Microsoft Corporation (NASDAQ: MSFT)
Revenue: $143 billion
Microsoft tops the list of the most valuable gaming companies in the world. MSFT is not only the world’s biggest software company, but it is also the fourth largest gaming company in the world. Microsoft’s gaming branch, the Xbox Game Studios, earned around $12.9 billion last year. This revenue was generated by sales of the latest gaming console developed by Microsoft called the Xbox Series X/S. Microsoft also develops video games itself or owns several game development studios such as Mojang which is known for creating the popular game, Minecraft.
You can also take a peek at George Soros’ Top 10 Stock Picks and 15 Most Valuable Cloud Computing Companies.
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Disclosure: None. 15 Most Valuable Gaming Companies in the World is originally published on Insider Monkey.
