Fortnite generation and the gaming revolution
Abraham George Market Musings
Mukesh Ambani’s comments on gaming prompted me to write this piece. My grandson is a very good Fortnite player. We have the best time together when I take him for tennis coaching. I talk to him about tennis and testimonials of some of the biggest players in the world. I even took him to Melbourne for the last year’s Australian Open where Djokovich was playing.
When he talks to me about Fortnite, his face lights up and he claims that he is in the first three among a group of thousand players. When I ask him how do you know that? He says next time when I am playing you come and sit with me and I will show you my ranking. He uses lingo and jargon that are alien to me. When I ask him to clarify, he sort of tells me dismissively, “How come you are 66 and you don’t know this word while I am only 8 years old.” His Fortnite became so addictive that his parents had to ground him. For a few days he had withdrawal symptoms, but he is ok now. At one time, he was dreaming of becoming a professional Fortnite player as his friend Santiago told him that a 15 year old boy made 3 mio dollars in a Fortnite competition. He even discussed that with me. He said, “Grandpa don’t you think I will be a better Fortnite player than a tennis player. So why don’t you all encourage me in that”. I said, “I am sure you will and we are not teaching you tennis to be the next Djokovich. You are learning tennis to keep yourself fit and learn a sport which will help you in many other areas of your life as you grow up.
My grandson’s gaming time might get stopped or strictly regulated and we may be be under the misconception that he will grow out of it. That couldn’t be further from the truth. Gaming is clearly a part of the new generation.
In fact, the average age of a gamer is 34 years old. For female gamers the average age is 36 years old. According to Statista, 79% of gamers are over the age of 18. The truth is video games are most certainly not ‘just for kids’. It is one of the biggest way the millennial father bonds with his son. Even 6% of the gamers are above 65. And of these people, 46% are men and 63% are women and they all picked this up in the past 10 years. Games are universally liked by people of all ages.
This we can see clearly in the growth of the industry. It has grown into an impressive $156 bio market in 2020 and is expected to grow to $269 bio by the end of 2025. For comparison, the global film industry is estimated to be $100 bio market. Great returns will be made with the right investments in the video game industry. The upgrade that is happening in this industry is something we have to be focused.
Abraham George is a seasoned investment manager with more than 40 years of experience in trading & investment and portfolio management spanning diverse environments like banks (HSBC, ADCB), sovereign wealth fund (ADIA), a royal family office and a hedge fund.