Despite the availability of widening outdoor entertainment options with the reopening of the economy, the provision of advanced video game software, advanced consoles, and captivating content has enabled the industry to grow its active user base and generate significant returns over the past year. This growing interest in metaverse gaming platforms should help Roblox (RBLX) and Electronic Arts (EA) grow substantially over the long term. But which of these stocks is a better buy now? Read more to find out. Read on.Roblox Corporation (RBLX) and Electronic Arts Inc . (NASDAQ:EA) are two established players in the video gaming industry. RBLX, which is based in San Mateo, Calif., 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, Redwood (NYSE:RWT) City, Calif.-based EA develops, publishes, and distributes branded interactive entertainment software across various genres for video game consoles, PCs, handheld game players, and cellular handsets worldwide. It also provides online game-related services.
Limited outdoor entertainment and recreation activities helped the video game industry expand its active user base and generate significant returns last year. While increasing vaccination rates and decreasing COVID-19 cases were expected to slow the market this year, video game companies’ efforts to improve software, consoles, content, and graphics helped the industry generate sales worth $4.40 billion in October 2021, up 16% from the prior-year period.
Also, rising interest in metaverse gaming further enhances the industry’s long-term growth prospects. Investor optimism in this space is evident in the Global X Video Games & Esports ETF (HERO) 9.9% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 4.8% returns. The global gaming market is expected to grow at a 13.2% CAGR to reach $545.98 billion by 2028. So, both RBLX and EA should benefit.