During the 2008 recession, the video games market became a haven for investors as it proved less vulnerable to economic headwinds. Banks collapsed, and the housing market crashed, yet continued to sell millions of consoles and games.

In 2023, the games industry might not be as recession-proof as it once was. However, it remains a solid growth market and showed its resilience last year as Sony and Microsoft had trouble keeping consoles on shelves despite macroeconomic challenges. Meanwhile, more recent developments, such as microtransactions and mobile games, provide more avenues for game companies to boost earnings. 

Video games are an ever-expanding industry where companies benefit from consistent demand for new content and regular updates to hardware that force consumers to upgrade their current setups every few years. As a result, it's not a bad idea to strengthen your portfolio by holding a video game stock over the long term. 

Continue reading

Source Fool.com