Gaming stocks describe a wide swath of companies working in many niche spaces. Game development, hardware manufacturing, mobile app creation and more all fall under the wider gaming stock umbrella. Increasingly, a handful of those gaming stocks are penetrating international markets and are turning into gaming giants.
While gaming stocks historically enjoyed popularity in the United States, China and a handful of smaller countries like Japan and South Korea. Those companies are increasingly rooted in emerging markets. Recent research points to rapid gaming growth in the Philippines, Indonesia, Turkey, Mexico and other international markets.
While we’re seeing gaming stocks adapt to those markets differently—think lower price points, in-game Easter eggs, and similar features—some 2024 gaming stock trends point to particular strength for these three companies.
Nintendo (NTDOY, NTDOF)
Last year saw a lot of rumor and hype for Nintendo (OTCMKTS:NTDOY, OTCMKTS:NTDOF), but little transpired to send the stock stratospheric. In a few short months, Nintendo news included a possible virtual reality headset and a Microsoft (NASDAQ:MSFT) acquisition. While most of Nintendo’s high-flying potential projects remain unconfirmed, two key developments point to major tailwinds pushing Nintendo higher soon. When it comes to gaming giants, Nintendo is one of the biggest names out there.
First, Nintendo’s Super Mario Bros. Movie saw record sales, securing over $1.3 billion annually. That success caused a realization that, among Nintendo’s massive intellectual property portfolio, there’s a host of franchises ripe for moviemaking. Now, Nintendo is capitalizing on the opportunity by developing a Legend of Zelda movie with an undetermined release schedule. With international Super Mario Bros. sales dwarfing the domestic equivalent, this hotly-anticipated Nintendo movie will surely make waves abroad and put some sails back into Nintendo stock.
Less clear, but no less exciting, is whether Nintendo will release a follow-up to its popular Nintendo Switch gaming platform in 2024. European reporters indicated that, in August last year, they got a sneak peek at the new console. Nintendo Switch sales total more than 130 million global units, so a new console dropping in 2024 would be a major boon to the gaming stock’s international positioning.
Meta Platforms (META)
2024 might be a breakthrough year for Meta Platforms (NASDAQ:META) if predictions that the company’s virtual reality offerings gain momentum hold true. Meta’s new Quest 3 VR headset is already gaining ground on Steam, falling behind two Oculus platforms (also made by Meta) and Valve’s Index HMD headset. With three of the top four spots snagged by Meta, the company has a clear lead in the virtual reality gaming market. Global virtual reality gaming should grow substantially from 2024 onward, with some projecting the global market to grow 31% annually through 2028.
At the same time, on the lower-tech end of the spectrum, Meta’s Facebook instant game offerings are increasingly popular in emerging markets. These players represent the opposite end of the spectrum, in general, of those interested in VR. Dubbed hypercasual gamers, this market wants a brief respite or distraction from daily life and isn’t interested in anchoring a lifestyle around a gaming platform. This demographic is also easily monetized, as banner ads, in-game videos and microtransactions create an ecosystem ripe for opportunity as Meta continues nurturing this segment.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) might seem a surprising choice on a list of top international gaming stocks. For many, the company’s core value is in its varied streaming video titles. However, Netflix is making increasing inroads into gaming, as evidenced by its cloud-based mobile game testing in Canadian and United Kingdom markets last year. For example, the Grand Theft Auto trilogy is playable on Netlix. While the tech is still in its relative infancy, a complete Netflix ecosystem integrating streaming titles, gaming and live sports could put the juggernaut back into the S&P 500’s top 10.
From a bigger-picture strategic perspective, Netflix has made its intention to target international markets clear. In 2023, co-CEO Greg Peters told reporters that Netflix intended to break down geographic boundaries for filmmakers and “give them the ability to connect that story with a huge global audience.” If we combine Netflix’s clear global-mindedness with its emerging gaming opportunities, there’s a huge chance that Netflix will reassert itself on the hierarchy in 2024. It may not seem like its turf, but Netflix is slowly becoming one of the top gaming giants.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
