Despite the growing availability of outdoor recreation options now, by offering increasingly captivating content and advanced gaming software, graphics and consoles, the gaming industry should continue its growth. Therefore, we think prominent players in this space, Roblox (RBLX) and Activision Blizzard (NASDAQ:ATVI), should benefit. But which of these stocks is a better buy now? Read more to find out.Roblox Corporation (RBLX) and Activision Blizzard, Inc. (ATVI) are two established players in the video gaming industry. San Mateo, Calif-based CARBLX develops and operates an online entertainment platform that offers applications and solutions, allowing developers and creators worldwide to build, publish, and operate 3D experiences and other content. In comparison, ATVI in Santa Monica, Calif., develops and publishes interactive entertainment content and services across various gaming platforms, through subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision and Blizzard products.
The launch of immersive and realistic games, esports competitions on various platforms, and efficient gaming consoles have helped the video game industry generate significant revenues and expand its monthly active user base since the onset of the COVID-19 pandemic, with limited outdoor entertainment and recreation activities acting as a catalyst. While the ongoing vaccination drive and availability of various outdoor activities were expected to slow down the industry’s growth this year, the efforts of video game makers to provide captivating content, powerful graphics, and advanced software helped the industry generate $4.39 billion in sales in October 2021, up 16% from the prior-year period.
Also, a rising interest in metaverse gaming further enhances the industry’s long-term growth prospects. Investor optimism in this space is evident in the Wedbush ETFMG Video Game Tech ETF’s (GAMR) 4.7% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 3.6% returns. The global video game market is expected to grow at a 9.7% CAGR to $225.10 billion by 2025. So, both RBLX and ATVI should benefit.