What are the world's 5 biggest video-game companies? A Foolish T - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

What are the world's 5 biggest video-game companies? A Foolish Take

Posted: Updated:
Chart showing the top five gaming companies in the world. Chart showing the top five gaming companies in the world.
Video

The world's top 25 gaming companies generated $94.1 billion in combined software revenue last year, according to Newzoo, marking a 29 percent jump from 2016. Mobile gaming revenue accounted for 46 percent of the total, followed by console games at 33 percent and PC games at 21 percent.

Sony, Microsoft, and Activision Blizzard are well-established game publishers. However, market leader Tencent (NASDAQOTH: TCEHY) isn't a household name in the United States.

The Chinese tech giant's video game portfolio includes top e-sports title "League of Legends," as well as mobile hits such as "Arena of Valor," "Clash of Clans" and "PUBG Mobile." Tencent has a 40 percent stake in "Fortnite" publisher Epic Games and smaller stakes in Activision Blizzard and Ubisoft.

Meanwhile, many people forget that Apple (NASDAQ: AAPL), which takes a 30 percent cut of all sales of iOS games in its App Store, also is a leading game publisher. Though $8 billion equals just 3.5 percent of its 2017 revenue, that growth clearly complements the expansion of its services ecosystem, which includes Apple Pay, Apple Music, iTunes, and other services. The Mac maker is aiming to double its fiscal 2016 services revenue by 2020.

More: Rising cost of college creating a financial hole for parents, students: Foolish Take

More: Tesla tops list with 3 of America's 5 best-selling electric vehicles: A Foolish Take

More: Starbucks tops Apple in mobile payments: A Foolish Take

Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Leo Sun owns shares of Apple and Tencent Holdings. The Motley Fool owns shares of and recommends ATVI, Apple, and Tencent Holdings. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Offer from the Motley Fool: Offer from The Motley Fool: The 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the S&P 500!*

Tom and David just revealed their ten top stock picks for investors to buy right now.

Click here to get access to the full list!

*Stock Advisor returns as of May 8, 2018.

Powered by Frankly
All content © Copyright 2000 - 2018 Midwest Television, Inc. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.