Tag Archives: Nintendo

Why You Should Invest in Video Games, Like Now

I love video games. You probably do too or you wouldn’t be reading this (but hey, everyone is welcome).

So what if I told you that your passion could make you rich? No, I’m not suggesting you enter the competitive streaming market, sell virtual gold, or start an e-sports career. What I’m suggesting is much simpler – investing. I know reading about money isn’t as exciting as playing a new MMO game, but reading about money could lead to buying more MMOs. So in a way, this post is about playing more MMORPGs and games of all kinds!

World of Warcraft stocks

Want Proof?

If you had invested the cost of a $14.99 World of Warcraft monthly subscription into Activision Blizzard on an annual basis between November 2004 to November 2007, your $539.64 (yes, that’s how much we all spent) would now be worth $5,972. It literally would have paid for itself ten times over. And while Activision Blizzard technically existed as only Activision before 2008, the point isn’t any less valid.

For those unfamiliar with stock investments, they are a great way to grow your wealth. The easiest and most common recommendation for investors is to purchase index funds. There’s no doubt that strategy pays off in the long term. For example, $100 invested into the S&P 500 in 1977 would be worth approximately $2,500 today. By contrast, a savings account at today’s interest rates wouldn’t even earn you $100 in 40 years.

There is a small optimization problem with the index fund strategy. Not only is buying and holding index funds not very exciting, but video game related stocks vastly outperform index funds. Fair warning: prepare yourself for some math below.

Be aware that I am not a professional financial advisor in any capacity and the following information should not be construed as financially sound or professional advice. So don’t blame me if this article blows up your retirement fund, but do feel free to PayPal me some money if this information gives you the means to ‘pay to win’.

Baseline Investment

To really assess the performance of video game stocks, we need to set a few baseline values. For that, I’ll follow the performance details of three major index funds. The S&P 500 is the most common index fund to invest in and provides consistently strong returns. NASDAQ tracks technology stocks and thus is particularly relevant to compare against video games. Finally, Asia is a huge player in the video game industry so I’ll also be analyzing the Japanese index, Nikkei 225. So how have these indices performed over the years?

Let’s take a look at percentage gains from four points in time: one year ago, five years ago, ten years ago, and in January 2000, right before the dot-com bubble burst. Later, we’ll measure these indices against key video game stocks.

S&P 500

1Y: +13.72%
5Y: +75.52%
10Y: +67.5%
January, 2000: +68.04%


1Y: +23.1%
5Y: +109.25%
10Y: +147.18%
January, 2000: +57.71%

Nikkei 225

1Y: +20.08%
5Y: +122.24%
10Y: +18.57%
January, 2000: +5.71%

Unsurprisingly, the best gains have been over the past five years as the market has only ticked upwards since the United States housing crash bottomed out in 2009. More importantly, it’s a positive sign to see that even investing at the peak of a stock market bubble will lead to long term gains. Even the best investors can’t time the stock market so consistent investments is the best route to leveling up your bank account.


Bears & Bulls vs. Madden & Mario

Plenty of companies sell video games so it would be pretty impractical to research them all. Instead, I’ll focus on those where their primary business is video games (which excludes publishers like Tencent Holdings) with at least some stake in the MMO market. Without further ado, I present our contenders who represent evidence for fiscally sound investment in video games.

Activision Blizzard is responsible for World of Warcraft. Electronic Arts is best known for their sports titles, but don’t forget that this giant owns Bioware and thus, Star Wars: The Old Republic. NEXON is one of the world’s largest free-to-play MMORPG publishers.  Ubisoft merely dabbles in the MMO market, but everyone has heard of game series like Assassin’s Creed. Square Enix owns and operates the beloved Final Fantasy franchise, which now includes two MMORPGs. NCSoft Corp’s ownership of Guild Wars, Lineage, and more has long made them a major player in the MMO space. Finally, if I’m looking at video games, I’d be hard pressed not to include Nintendo even if they’ve avoided MMOizing any of their IPs (come on, let’s get a real Pokemon MMORPG).

Activision Blizzard, Inc.

1Y: +58.39%
5Y: +457.19%
10Y: +572.74%
January, 2000: +5,027.15%

Electronic Arts Inc.

1Y: +49.92%
5Y: +813.58%
10Y: +130.03%
January, 2000: +479.9%


1Y: +105.93%
5Y: +142.96%
10Y *: +149.36%
January, 2000 *: +149.36%

Ubisoft Entertainment SA

1Y: +59.07%
5Y: +831.11%
10Y: +145.65%
January, 2000: +459.6%

Square Enix Holdings Co Ltd

1Y: +23.68%
5Y: +194.59%
10Y: +7.66%
January, 2000: -64.08%

NCSoft Corp

1Y: +44.01%
5Y: +52.28%
10Y: +392.95%
January, 2000 *: +1,047.76%

Nintendo Co., Ltd

1Y: +68.93%
5Y: +320.18%
10Y: -31.64%
January, 2000: +130.44%

(* – Some companies have not been publicly traded for 17 or even 10 years. In these cases, the percentage gains relate to to their IPO date which stands for initial public offering. This will greatly skew the January, 2000 numbers in particular due to the company avoiding the market crash.)

What Does it Mean?

what does it mean double rainbow

These percentages tell us something important, but they’re also hard to wrap one’s head around. For that, we need to illustrate real world cash gains over time. Below you’ll see what gains one would earn investing $1,000 evenly across the three example funds compared to distributing $1,000 evenly over five to seven of the video game stocks (discounting companies that did not exist for the time period).

1-Year Gains:

Funds: +$189.66
Video Games: +$585

5-Year Gains:

Funds: +$1,023.66
Video Games: +$4,016.98

10-Year Gains:

Funds: +$777.50
Video Games: +$2,028.98

Gains since January, 2000:

Funds: +$438.20
Video Games: +$12,066.02 (+$2,514.65 without Activision Blizzard’s massive 50x gain)

In short, investing in video games at any of these four points in time would have netted you gains of 3x compared to recommended index funds. To put it another way, someone who had invested in video games at the turn of the century could today afford 193 more $60 AAA titles than someone who had invested in index funds.

That said, it’s important to note the only period points with losses belong to the video game stocks. While individual stocks can produce greater rewards, they are also inherently more risky. Even while I laud the performance of the video game industry, I would still suggest a heavy mixture of index funds to offset the risk.

Gross Assets to Win (GA2W)

Sadly, paying money to ‘win’ online games is never going to vanish from the industry. But with some smart investing you could be the whale everyone hates. And how poetic would it be to make that money from the very games you play? (Of course investing takes time so until then, here are a few good free MMOs that aren’t pay-to-win.)

This is as far from a get rich quick scheme as you can get. The foundation of investing is built on bankrolling good companies over a period of several years. And at some point in the next ten years, the market will likely crash again. However, given time and smart investments you will see your real world money grow to levels that make virtual currency such as Elder Scrolls Online crowns, Guild Wars 2 gems, and SW:TOR cartel coins a drop in the bucket.

You should do your own research before investing in anything, but hopefully this has opened your eyes a bit (and if so, I highly recommend Scottrade for individual stocks and Vanguard for index funds). And if you’re a teenager who thinks you don’t have enough money for any of this to matter, think again. The sooner you start investing, the more money you’ll end up when you hit “adulthood”, the faster you’ll retire, and the more MMORPGs and video games you can spend playing guilt-free during that retirement.

We Love Pokemon Go Despite Hating Everything About It

Pokemon Go has certainly taken the world by storm. Nintendo’s stock has risen a tremendous 44% since Pokemon Go’s release last week.

Nintendo stock up 45% from Pokemon Go

Nintendo stock up 45% since the July 6 NA/AU release date of Pokemon Go.

The augmented reality (AR) game is certainly making news, both good and bad. It’s encouraging people to walk, which fantastically combats increasing worldwide obesity rates. However, not all is well as criminals used the game to locate groups of players to rob late at night. It’s also steering focus away from the real reality, making a Pokemon Go related car wreck seem inevitable. Nonetheless, Pokemon Go is clearly the latest hit in the gaming universe. It’s funny too because it is full of things we as MMO players and gamers in general say we hate.


The core gameplay of Pokemon Go revolves around walking to Pokestops to gather pokeballs to catch Pokemon that wildly appear while walking around. When the wild Pokemon appear, the player flings the pokeballs in order to catch their prey. To level up these Pokemon, players must catch more of the same ones to acquire the necessary materials. There’s no real critical thinking involved, either in the capture or evolution mechanics. Thus to become a legendary Pokemon master you will simply embark on an epic adventure of repeating the same activities over and over to raise the seemingly unending combat power (CP) value. Meanwhile in other games, people bemoan comparable methods of grinding to progress.


It’s incredibly frustrating for a game to hoist activities on you while leaving critical components of those activities unexplained. Pokemon Go isn’t very complicated, but it’s also not very intuitive. Trial and error and logical deduction will eventually teach everything, but the game explicitly explains very little. The game shouldn’t really necessitate guides, and yet lengthy articles such as this one on tracking Pokemon are continually cropping up. Core systems such as the aforementioned Pokemon tracking, combat, and gym PokeCoin generation are left to the user to simply figure out. Players can get by without these subtle nuances, but they’ll be at a disadvantage without that knowledge.

Hardcore Commitment

MMOs requiring hardcore time commitments are falling by the wayside. Pokemon Go, however, can only be fully experienced by those who put in serious effort. The endgame of Pokemon Go takes place in the gyms around town. Players align themselves to one of the game’s three different teams to conquer and defend local gyms from teams of opposing colors. To conquer these gyms, players must use Pokemon with high CP in order to compete with other trainers. Holding onto these gyms at certain points of the day will reward gym guardians with PokeCoins, the game’s premium currency.

Pokemon Go Gym

Pokemon Go Gyms, the only place where combat takes place.

Players can also store Pokemon at friendly gyms but only if space is available. Players can make space by training at the gym but will ultimately require high CP Pokemon in order to do so. To realistically acquire PokeCoins without paying, a player is going to need some strong Pokemon. As already discussed, that’s only possible through grinding. This creates a cycle where the rich get richer. Even ignoring the items that only PokeCoins can buy, not being able to participate in realistically winnable battles can be frustrating for those without a hardcore level of commitment to Pokemon Go.

Pay to Win

To be fair, I’m personally not labeling Pokemon Go as a pay to win game. Players cannot purchase untenable power. The size of one’s wallet does not impact the need to go out and grind Pokemon captures. Reaching Pokemon master status will always require a certain level of “work”.

That said, the PokeCoin store’s inventory is full of time saving advantages such as EXP boosters, egg incubators, and Pokemon lures. Assuming equal time commitments, a paid player will quickly outclass a free player. The balancing mechanisms here are teamwork and the maximum levels and CPs of trainers and Pokemon, respectively. Eventually a free player can catch up to a paid player, but early gym dominance simply adds to that difficulty. Many players deride “time = money” cash shop purchases as pay to win so it’s worth pointing out.


Pokemon Go is surely not a friend of environmentalists. The game drains battery at lightning speed. Minimizing is not an option, lest Pokemon go uncaptured without optional push notifications. I’ll give the bugs and server issues a pass because it’s nothing new to online game world launches. The design decisions and lack of optimization options need to be brought up though because it impacts the long term enjoyment. A game isn’t very fun when it won’t work because it killed the power source (i.e. your phone). It’s similar to major PC releases that cause slowdowns and video lag due to poorly optimized code.

Love Transcends Hate

Let me sum this up in way MMO veterans can understand. Imagine if you took everything that made World of Warcraft a worldwide sensation and did the exact opposite. Pokemon Go would be the result.

world of warcraft pokemon go opposite

Flip World of Warcraft upside down, get Pokemon Go?

That said, the game is clearly addictive. I still have it installed and open it up during my regular walks. It’s probably the most social game I’ve played in a while. It’s pretty obvious who is clearly capturing Pokemon alongside me, so it’s easy to strike up a conversation. (I’m eagerly awaiting the first marriage proposal to arise from this game.)

The simplistic capturing mechanic, achievement addiction, exercise encouragement, nostalgia, teamwork, and augmented reality all make for a wholly unique experience. It’s quite simply why we can love a game when we hate so much about it. I’d argue the game element isn’t even that good, but we’re willing to overlook a lot of faults when the full package delivers this much fun.