Video Game Stocks Surge in 2025, Driven by Anticipated Releases
Video game stocks have experienced a significant surge in 2025, outpacing the broader market as investors anticipate highly-awaited releases such as Grand Theft Auto 6 and the Nintendo Switch 2. The Global X Video Games & Esports ETF has notably outperformed the S&P 500, reflecting the industry’s robust growth.
Nintendo’s US-listed shares have seen a remarkable 23% increase year-to-date, largely attributed to the imminent release of the Nintendo Switch 2. As the current console approaches its eighth year on the market, consumer demand for the new iteration is at an all-time high. Nintendo is ramping up production to meet this anticipated demand, with the new console’s backward compatibility expected to further boost software sales. JPMorgan analysts project significant growth in Nintendo’s software sales over the coming years.
Take-Two Interactive, the company behind the Grand Theft Auto franchise, has also seen its shares rally 16% to record highs. The confirmation of Grand Theft Auto 6’s release later this Fall has fueled high expectations, given the unprecedented success of its predecessor. Analysts predict that Grand Theft Auto 6 could potentially sell 250 million units over its lifetime, surpassing the already impressive performance of Grand Theft Auto 5.
Other video game stocks are also benefiting from this industry-wide surge. NetEase, a China-based developer, has experienced a notable increase in share value, partly due to the success of its Marvel Rivals game. NDR analysts have recommended buying video game stocks, citing anticipated strong demand driven by new titles and hardware releases.
The video game industry’s performance stands in stark contrast to other media sectors. While video game companies thrive, film industry giants such as Warner Bros. Discovery, Disney, and Paramount Global are facing challenges. Warner Bros. Discovery and Disney have seen their shares decline, while Paramount has experienced minimal growth.
As the video game industry continues to evolve and expand, investors remain optimistic about its potential for sustained growth and profitability in the coming years.
