Investors are flocking to video gaming, but be wary of esports, SPACs, advisors say – The Washington Post

Investors are flocking to video gaming, but be wary of esports, SPACs, advisors say – The Washington Post

For example, outsiders to gaming and gaming culture are often confused about esports and how it fits into gaming as a whole. The distinction is important; it’s the difference between investing in an established, soaring industry and a nascent one still looking for secure footholds on its ascent.

Start here: While all esports games are video games, not all video games are considered esports. Perhaps an easier analogy is that all racing cars are cars, but not all cars are built for racing. While cars and video games are accessible to most people, racecars and esports are left to the professionals and aspiring amateurs, a much smaller group of folks.

In 2020, SuperData, a Nielsen research company, reported that the games and interactive media industry has grown 12 percent year-to-year, becoming a $139.9 billion global business. The U.S.-based segment of that market stands at $60.4 billion. While the pandemic surely impacted this growth, investors are
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