Despite the rise of online and multiplayer gaming, the video gaming industry remains a huge global business. This sector is worth $95.45 billion in the US alone, and this number continues to grow year on year.
One of the leading players in this market is Capcom, which has been around for generations and is synonymous with franchises like Final Fight and Resident Evil.
In this post, we’ll take a closer look at Capcom’s background and performance, while asking how you can invest in this type of equity?
Capcom – A Brief Introduction
Capcom started in Japan in 1979, as a manufacturer and distributor of electronic game machines (such as consoles and PCs).
By 1983, Capcom had evolved to deliver cutting-edge tech and game franchises to the video game market, while the company’s first arcade-based title “Vulgus” created a blueprint for precisely what the brand was aiming to achieve.
This was followed two years later by the launch of the iconic “Street Fighter” franchise, which became one of the best-selling titles of its type and helped to push the business’s sales past $550 million by the end of 1993.
The popular Resident Evil franchise followed two years later, while the company gradually started to expand its operations to include the newly released Xbox console by the turn of the century.
Capcom has also been ahead of its time, and in 2005 the brand created a dedicated Mobile and Interactive Division to help create content for handheld devices. To this end, it also acquired the Canada-based ‘Cosmic Infinity’ in 2006, enabling it to access high-tech assets that afforded the brand a prime position in the marketplace.
Why You Should Invest in Capcom
As of 2022, Capcom has grown to achieve a total market cap of $995.40 billion, while its stock price has also increased incrementally of late to reach $3,735.
This makes it an attractive investment proposition, especially when you also consider its position in the market, positive balance sheet and the brand’s innovative outlook and range of products.
But how can you invest in Capcom? While you can purchase the stock outright, this is quite expensive and requires you to take ownership of shares. Although this is fine if you have a buy-and-hold investment strategy, it can be risky in the type of volatile economic climate that exists today.
Buying fractional shares could be a solution here, but we’d recommend utilizing speculative investment vehicles where possible. For example, you can trade Capcom shares through spread betting, which enables you to speculate on price movements (both high and low) without assuming ownership of the underlying instrument.
This creates a scenario where you can actively profit from market volatility in real-time, particularly if you target relevant indexes (Capcom is listed on Japan’s Nikkei) and access a broader range of stock shares.