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In this article, we will discuss the 20 Biggest Gaming Companies in the World. If you want to skip our analysis of the gaming industry, go directly to the 5 Biggest Gaming Companies in the World.
The Gaming Industry: An Analysis
The video gaming industry in 2022 is valued at a whopping $197 billion and is expected to grow to $268 billion by 2025. Within the overall video gaming industry, there are several sub-categories, like esports, video game streaming & console gaming, which are widely popular amongst gamers these days. Esports relates to video game competitions organized across the world. These are often team games like Counter-Strike and Dota, but they can also be single-player games like Tekken 7. The teams who win these tournaments are often given a heavy prize, and the players enjoy celebrity status in the gaming community. Similarly, mobile gaming has also been very popular in the recent past as mobiles provide convenience for an average person to enjoy games without having to invest heavily in a gaming console or a PC. PUBG is a popular mobile game that is played by millions of gamers every day.
Copyright: patrikslezak / 123RF Stock Photo
The North-American region remains the biggest market for gaming, despite the recent rise of gaming in Asia. The gaming industry is forecasted to grow further in the future.
Our Methodology
We have picked the 20 biggest gaming companies in the world and have ranked them from #20 to #1 in order of their 2021 annual revenue.
20 Biggest Gaming Companies in the World
20. Unity Software Inc. (NYSE:U)
2021 annual revenue: $1.11 billion
Founded in 2004, Unity Software Inc. (NYSE:U) develops and manages a real-time interactive 3D content platform. Its platform provides solutions to create, run, and monetize dynamic, real-time 2D and 3D content for PCs, consoles, mobile phones, tablets, and virtual reality devices. Unity Software Inc. (NYSE:U)'s revenue for 2021 was reported at $1.11 billion.
In addition to Unity Software Inc. (NYSE:U), NetEase, Inc. (NASDAQ:NTES), Sony Corporation (NYSE:SNE), and Tencent Holdings Limited (TCEHY) are included in our list of 20 biggest gaming companies in the world.
The ClearBridge Investments All Cap Growth Strategy was buying shares of Unity Software Inc. (NYSE:U) during the first quarter, explaining why in its Q1 2022 investor letter:
We took advantage of a correction in higher-multiple stocks early in the first quarter to purchase shares of Unity Software (NYSE:U), a leading platform to create, run and monetize 3D content. With about 1.6 million monthly active creators versus roughly 15 million potential content creators in gaming alone, we believe the company's Create Engine is still underpenetrated relative to its core addressable market. We similarly see a long runway for growth in Unity's Operate Solutions segment given its advertising network commands single-digit share of the $60 billion mobile app install ad market today. Furthermore, we believe Unity is well-positioned to expand its addressable market to include industries beyond gaming, on both the operate and create sides of their business (Exhibit 1). The company is not yet free cash flow positive but given strong net expansion rates and high gross margins, we see a path to improving profitability over time, with management notably targeting positive free cash flow this fiscal year.
19. KRAFTON, Inc. (259960.KS)
2021 annual revenue: $1.62 billion
KRAFTON, Inc. (259960.KS) is a Korea-based company primarily focused on developing game software and services. The company produces web, mobile, and console. The company has published several popular games, including PUBG: Battleground and Tera. KRAFTON, Inc. (259960.KS) employs over 1600 people and is continually looking to grow its business beyond gaming into multimedia entertainment and deep learning.
KRAFTON, Inc. (259960.KS)'s revenue during 2021 was reported at $1.62 billion.
18. Roblox Corporation (NYSE:RBLX)
2021 annual revenue: $1.91 billion
Roblox Corporation (NYSE:RBLX) is an American company based in San Mateo, California that creates and maintains an online entertainment platform. The company is known for developing the popular game Roblox in 2006. Since then, Roblox Corporation (NYSE:RBLX) has developed various interesting products like Roblox Studio, which is a free toolset that allows developers and creators to develop, publish, and perform 3D experiences and other content. Roblox Client is an application that enables users to explore the 3D digital world. Roblox Corporation's (NYSE:RBLX) topline during 2021 stood at $1.91 billion.
Tao Value discussed some of the pros and cons of Roblox Corporation (NYSE:RBLX)'s popular virtual world in its Q4 2021 investor letter:
Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to "opt in".
17. NEXON Co., Ltd. (NEXOF)
2021 annual revenue: $2.54 billion
NEXON Co., Ltd. (NEXOF) is a world-leading gaming company involved in the production and development of services for PC and mobile online games. In addition, the company offers consultancy services for game distribution, in-game advertising, and merchandising. The mobile division creates and distributes mobile games for smartphones and tablets. NEXON Co., Ltd provides around 50 live games in 190 countries. The company operates through five subdivisions in Japan, Korea, North America, China, and others. In 2021, the company's revenue stood at $2.54 billion.
16. Playtika Holding Corp. (PLTK)
2021 annual revenue: $2.58 billion
Playtika Holding Corp. (PLTK) develops fun and innovative mobile games for its customer base. The company builds live game operations services and proprietary technology platforms to support its portfolio of many games, allowing the company to drive significant user engagement and monetization. Its portfolio of games includes House of Fun, Board Kings, Poker Heat, Slotomania, and Bingo Blitz. Playtika Holding Corp. (PLTK) reported over 35 million monthly active users in 2021. The company's sales during 2021 were reported at $2.58 billion.
15. Ubisoft Entertainment SA (UBI.PA)
2021 annual revenue: $2.60 billion
Headquartered in Saint-Mandé, France, Ubisoft Entertainment SA (UBI.PA) is a video game publishing company. Ubisoft Entertainment SA (UBI.PA) produces, publishes, and distributes video games in physical and digital versions for consoles, PCs, smartphones, and tablets globally. The company also creates and publishes educational and cultural software, cartoons, and literary works, as well as films and television shows. Through its e-commerce site, the company also designs and sells clothing, accessories, collectibles, and art. Ubisoft Entertainment SA (UBI.PA)'s revenue for 2021 was reported at $2.60 billion.
14. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
2021 annual revenue: $3.37 billion
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading developer, publisher, and marketer of interactive entertainment products. The company develops and publishes its products through 2K, Rockstar Games, Private Division, and T2 Mobile Games for gaming consoles, personal computers, and mobile phones. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has approximately 5,800 employees worldwide. The company reported sales of $3.37 billion for the fiscal year 2021.
Madison Funds is bullish on Take-Two Interactive Software, Inc. (NASDAQ:TTWO)'s stable of high-quality games and how the changing dynamics of the gaming industry favor the company going forward, as detailed in the fund's Q2 2022 investor letter:
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading publisher of video games. Take-Two has a reputation for the high quality of its games, having published industry favorites such as Grand Theft Auto and NBA2K.
The video game industry itself has shed much of its boom-and-bust patterns to become a steadier, more predictable business with high barriers to entry, established title franchises, and high levels of recurring, in-game revenue streams. The company has been investing heavily to step up the number of new title launches over the next few years, a favorable set-up which we believe is not fully reflected in its stock price.
13. Aristocrat Leisure Limited (ALL.AX)
2021 annual revenue: $3.43 billion
Aristocrat Leisure Limited (ALL.AX) is an Australian global gaming company and a top-tier mobile games publisher with over 7,000 employees worldwide. Aristocrat's products and services include electronic gaming machines, casino management systems, and free-to-play mobile games. Aristocrat Leisure Limited (ALL.AX) also offers technical assistance and services such as casino consulting and design. The company has three operating divisions: Pixel United, Aristocrat Gaming, and Anaxi. The company's revenue was reported at $3.43 billion in 2021.
12. Entain Plc (ENT.L)
2021 annual revenue: $5.16 billion
Entain Plc (ENT.L) is one of the world's leading sports betting and gaming companies, operating in both the online and physical gaming industry. The company offers online betting, casino, poker, and bingo services under its Bwin brand and Betboo brand. The company's revenue in 2021 stood at $5.16 billion.
11. Electronic Arts Inc. (NASDAQ:EA)
2021 annual revenue: $5.62 billion
Electronic Arts Inc. (NASDAQ:EA) develops, promotes, publishes, and distributes games and services for video game consoles, personal computers, mobile phones, and tablets around the world. Electronic Arts Inc. (NASDAQ:EA) develops and publishes games and related services across several genres, such as racing, sports, first-person shooter, roleplaying, action, and simulation. Through live services, Electronic Arts Inc. (NASDAQ:EA) offers its videogame users high-quality experiences planned to provide value to users and extend and enhance gameplay. These live services include extra content, subscription offerings, and other revenue generated outside of the sale of its base games. Electronic Arts Inc. (NASDAQ:EA)'s reported sales for 2021 stood at $5.62 billion.
Mayar Capital is bullish on the heightened engagement Electronic Arts Inc. (NASDAQ:EA) 's games have been enjoying according to the fund's Q2 2022 investor letter:
Electronic Arts is also developing as we would expect. The business enjoyed strong engagement last year with players of EA games spending 20% more time than even during 2020, helped by the delayed sales of the PS5 console. A potentially important development is the ongoing negotiation between EA and FIFA regarding the licensing of the FIFA brand for the EA football game. Strongly worded public statements have been slung from both parties as part of the negotiation process, but this could certainly be an opportunity for EA.
10. Epic Games
2021 annual revenue: $5.75 billion
Epic Games is an American corporation formed in 1991 by Tim Sweeney. The company is now a leading video game developer and has developed several famous games since its inception, including Fortnite, Gears of War, and Infinity Blade series. Fortnite is one of the world's most popular games, with over 350 million accounts and 2.5 billion friend connections. Epic Games also developed the Unreal Engine, which powers the world's most popular games and is used in various industries, including cinema and television, architecture, automotive, manufacturing, and simulation. The company's revenue for 2021 was reported at $5.75 billion.
9. GameStop Corp. (NYSE:GME)
2021 annual revenue: $6.01 billion
GameStop Corp. (NYSE:GME) is an American company that focuses on providing games, entertainment products, and technology and is one of the biggest video game retailers worldwide. GameStop Corp. sells new and used gaming platforms and accessories from various consoles and personal computers (PC) manufacturers. It also offers in-game digital cash, downloadable digital content, and full-game downloads.
The company operates via four geographical segments: the United States, Canada, Australia, and Europe. It operates 4,573 stores and online sites under the GameStop, EB Games, and Micromania brands as of January 2022. GameStop Corp. (NYSE:GME) reported sales of $6.01 billion during the fiscal year 2021.
Bireme Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
Amazingly, GameStop Corp. (NYSE:GME) is one of our only short positions to not fall in 2022. The stock trades at an $11.5b market cap, exceeding its pre-pandemic peak by billions of dollars. This is despite the fact that revenue is down 30% from the peak, gross margins are down 1500 bps, and the company has generated a negative free cash outflow of $700m in the last four quarters (we had to double check that number because it is so high).
8. BANDAI NAMCO Holdings Inc. (7832.T)
2021 annual revenue: $7.36 billion
BANDAI NAMCO Holdings Inc. (7832.T) is a Japanese multinational company that develops, manufactures, and sells entertainment products and services. The company runs its operations through the following subdivisions: Toys and Hobby, Network Entertainment, Real Entertainment, Visual and Music Production Business, and IP Creation Business. BANDAI NAMCO Holdings Inc. (7832.T) creates and publishes video games and owns several multi-million video game franchises. The company's sales for 2021 stood at $7.36 billion.
7. Activision Blizzard, Inc. (NASDAQ:ATVI)
2021 annual revenue: $8.80 billion
Activision Blizzard, Inc. (NASDAQ:ATVI) is a developing and publishing company of interactive entertainment content services worldwide. The company runs its business through three segments; Activision Publishing, Inc., Blizzard Entertainment, Inc., and King Digital Entertainment. It also runs esports leagues and provides digital advertising material. Activision Blizzard, Inc. (NASDAQ:ATVI) also provides logistics, warehousing, and distribution services to third-party interactive entertainment software publishers and manufacturers of interactive entertainment hardware products. Activision Blizzard, Inc. (NASDAQ:ATVI)'s sales for 2021 stood at $8.80 billion.
Here is what Cooper Investors specifically said about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q2 2022 investor letter:
Activision Blizzard, Inc. (NASDAQ:ATVI) – our investment preceded news that the company was under investigation for workplace bullying. When it became clear management had misled the market on the extent of the problem we sold, led by our principles of Responsible Investing. We did not benefit from the subsequent M&A premium paid by Microsoft.
6. Sea Limited (NYSE:SE)
2021 annual revenue: $9.95 billion
Sea Limited (NYSE:SE) is a tech conglomerate that provides digital entertainment, e-commerce, and financial services. The company produced the popular royale game, 'Garena Free Fire,' which had 150 million daily active users in 2021. The Garena digital entertainment allows people to access mobile and PC online games, eSports operations, and other entertainment content, such as live streaming of gameplay and social features like user chat and online forums. Sea Limited (NYSE:SE) also provides consumers and organizations with digital financial services such as e-wallet services, payment processing, and other financial products. Sea Limited (NYSE:SE) 's sales for 2021 were reported at $9.95 billion.
The Baron New Asia Fund also sold out of its Sea Limited (NYSE:SE) position this year, citing the company's slowing revenue and user growth, as detailed in its Q1 2022 investor letter:
Sea Limited, a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea's new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.
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Disclosure: None. 20 Biggest Gaming Companies in the World is originally published on Insider Monkey.
