The Hottest Trends in the Games Industry

The game industry is extremely wide and full of many leaders and niche players in terms of both games and game companies. Some of the past top genres and leading games are now faltering while newer ones quickly fill their places. Minus pure fads like Flappy Bird, game genres and online games generally get hot and cold over time. The leaders are usually the best indication of the strength or weakness of a particular genre.

Take MMORPGs (Massively Multiplayer Online Role Playing Game) for an example of a game genre that has seen better days. Pay-to-play MMORPGs and then Free MMORPGs were once so hot that a single individual (myself) was able to be start a major website (GameOgre.com) based mainly on game lists. It was was a time when World of Warcraft was still bringing in new paying players by the millions and having successful expansion after successful expansion. Looking solely at World of Warcraft, it appeared that MMORPGs were going nowhere but up. For years, that did appear to be the case. However, the exuberance over WoW and MMORPGs in general brought in incredible saturation as companies started pumping out new games left and right to take advantage of this hot trend. Smaller companies started going after Free MMORPGs (MMORPGs without monthly subscription fees) in particular and that sub-genre began to form as a longer term foil to WoW’s raging success. Media would occasionally tout a WoW killer every few months or so,  but no MMORPG really stepped up claimed that throne for the giant from Activision Blizzard.

Although the aforementioned free games did play a part, the main games that challenged WoW were games of different genres like MOBAs (Massive Online Battle Arenas) and sandbox games. League of Legends, a MOBA, is the undisputed leader of its genre and is one of the most popular games in the world. If Riot ever has an IPO, it would likely be a Wall Street darling and easily eclipse current laggards such as ZNGA and GLUU. Part of the reason for its popularity is that it has capitalized on executing the player-versus-player concept expertly. In fact, it is also a leader in the new E-Sports trend and is one of the top games on Twitch.TV (was recently bought by Amazon). In contrast, MMORPGs failed to correctly make into a sport. That is why MOBAs are the much hotter genre going forward.

The sandbox game leader known as Minecraft has been in the news more recently since its parent company (Mojang) was rumored to be a possible buy for Microsoft for $2 billion. Minecraft has also taken something that MMORPGs could have done, but ultimately failed: allowing players to create with their imaginations instead of constantly grinding up levels. As a result, Minecraft has an even wider age audience and is on more platforms than League of Legends and World of Warcraft. While the MOBA succeeds with competition amongst its players, Minecraft succeeds due to players working together to create massive and fun worlds for everybody to see on such media as screenshots, videos and even Livestreams on Twitch.TV. Thus, it would be very interesting if Microsoft buys this game to see what all it would do with it. This game even has mobile versions so it has incredible future potential as well.

Trader or Investor?

Which one do you consider yourself to be? They both may involve the stock market and individual stocks  (not a big fan of Mutual Funds), but they have two very different mindsets. Although there shades of gray like with investors occasionally making trades and traders occasionally making investments, the hearts of the two methods could not be more different on the surface. Each one has both a good and bad side so choosing which path to take is definitely not easy.

Investing is more of a long term approach that involves looking at the fundamentals of companies and their long term prospects. Investors who are satisfied with a company that they believe will have a great future years away have more of a set-it-and-forget-it type mentality. The company may have short term bumps, the patient investors are will to wait those out. If the investment is in a rock solid company with growth in a thriving industry, they will likely on gain from this investment in time. They are not likely to lose money on the investment due to selling all their shares after a sell-off because of a bad earnings report or two. For example, there have been stories for decades of individuals investing in future giants like Walmart, Microsoft, and Apple. Anybody who held those stocks close to when they started made fortunes.

The flip-side of the investor is the trader. The trader only cares about short term swings in prices instead of the company’s long term fundamentals. Price charts are the most beloved of tools for the trader. He or she combs over trends in the prices of the stock to try to predict how the stock price may react in the future. Unlike investing, trading can cost you your principal investment or at least a chunk of it very quick. Prices do not always go up and these swings are what traders ply their abilities on. It takes a sharp mind, a strong stomach, and a great deal of timely information to be a successful trader. One wrong bet could be very expensive and could even mean financial ruin. Of course, successful traders can also make a lot of money quickly. See where the strong stomach comes in?

The question remains: Would you rather trade stocks or invest in companies? If you are not sure of your answer, there is a third option: use a hybrid of the two. Allow you have to be very selective about what you combine from the two, it can be a successful combination. For instance, you could analyze the fundamentals of a company to decide whether or not you should invest and then look at price charts to determine when would possibly be the best time to buy.

Welcome to StockUniverse.com

After being essentially out of the stock industry for many years, I have finally returned. I started on a small site called the GARP Investor all the way back in 1999. Then went onto to write for another defunct stock site that was known as WallStreetCity.com for two years. That company was bought out by a company that finally bought out by Ameritrade. Since then, I have dabbled in many industries including domains and games. Through domains, I was able to buy StockUniverse.com many years ago. I bought it with the intention that it would be my way back into stocks again. Thus, here we are. Look for this site to continue to grow  as a lot of things are planned for it.