Gaming’s Next Era: 3 Stocks in a Class of Their Own

Jun 13, 2025 9 min read

Florian

“In a world of fleeting trends, the real winners build worlds you never want to leave — and charge rent for the privilege”

– Florian talking about gaming stocks

arvy’s teaser: 3 gaming giants redefining entertainment: Nintendo’s nostalgic empire, CD Projekt’s comeback saga, and Take-Two’s high-stakes bet on GTA VI. In gaming’s new era, Intellectual Property isn’t just played – it’s relentlessly monetized.

Gaming.

It’s not what it was a decade ago.

Gone are the days of hit-or-miss software launches and cyclical hype cycles. The best companies have evolved – turning games into scalable Intellectual Property (IP) ecosystems with digital services, licensed content, recurring revenue streams, and emotional lock-in. From an investor’s perspective, that means one thing: They’re not just selling entertainment. They’re monetizing attention. And in a world where attention is the rarest currency of all, that’s not just fun. It’s profitable.

Let’s dive into my three favorite gaming stocks. These aren’t just studios – they build worlds, shape IPs, and spark cultural moments. But they each play on a very different level.

One is gearing up to release the most anticipated game in a decade.

One is turning nostalgia into recurring revenue.

And one is grinding through a redemption arc.

Let’s hit the “Start” button.

Chart 1: arvy team plays with the new Switch 2.0 for “research purposes”

Source: arvy

Nintendo — Building Moats with Mario

For me, Nintendo today feels like Disney in 2011. Same playbook. Different characters. Same magic.

Nintendo isn’t just a gaming company anymore. It’s a cross-platform IP powerhouse. The Super Mario Bros. Movie brought in $1.3 billion. Theme parks are expanding. And with the new Switch 2 just released (most-sold console ever in a 24-hour period), they’re doubling down on what works – instead of chasing what doesn’t.

It’s not nostalgia. It’s strategic reinvention, still in early innings.

That’s why it’s one of our Top 10 holdings.

Switch 2 matters more than previous consoles (chart 1). Because it’s not just hardware anymore. It’s the front door to subscriptions, a digital library, and an IP flywheel. Switch Online is already spinning off high-margin, recurring revenue. Backward compatibility and improved online services only strengthen the moat.

And the fundamentals?

Rock solid.

Nintendo sits on over $14 billion in net cash, has zero debt, and averages 27% net income margins. It makes most of its profits from characters it created 40 years ago – Mario, Princess Peach (my first love), Zelda, Pokémon, Animal Crossing.

What Nintendo is doing is simple and genius.

They take characters that need no introduction and turn them into games, then movies, and soon maybe even a Zelda trilogy that’s rumored to be similar to Lord of the Rings. My knees are shaking just thinking about it. They create merchandise, they sell it everywhere – and they bring it all to life in their expanding theme parks.

That’s IP leverage in its purest form.

As I said Disney 2.0.

And it’s sticky.

Kids who grew up with Mario now raise kids on Mario. That creates emotional loyalty, pricing power, and a monetization engine across media.

Like Apple, Nintendo sells you an ecosystem. Then makes sure you never want to leave.

But while Nintendo plays the long game with timeless icons, one fallen hero is quietly staging the greatest comeback in gaming history…

Chart 2: From Switch to Switch 2: The Cycles of Nintendo’s Success

Source: Nintendo, Statista

CD Projekt — Redemption, Reloaded

CD Projekt is the Polish game studio behind The Witcher series, one of the most beloved role-playing game franchises ever made.

Their big moment crashed in 2020 when Cyberpunk 2077 launched in a broken state, so bad Sony pulled it from their PlayStation store.

Fans were furious, lawsuits followed, and CD Projekt’s stock took a nosedive.

From hero to cautionary tale overnight.

Since then, CD Projekt hasn’t buried its head in the sand. They did what I always preach to say: “you can make mistakes but must not regret them; you should learn from them.”

The same is true when it comes to investing.

It’s an endless learning experience.

CD Projekt fixed Cyberpunk with patches, launched a successful expansion called Phantom Liberty, and switched to a new game engine, Unreal Engine 5.

The big headline now: The Witcher 4 is officially in the works, and this time the company is playing it smarter.

Off topic: You can watch the series based on the game on Netflix — highly recommended😉.

But what changed after those mistakes?

Instead of putting all their eggs in one basket, CD Projekt is building multiple games at once — parallel pipelines, less chaos, no more last-minute crunch. They aim for steadier releases, fewer surprises, and less risk of another Cyberpunk meltdown.

From a “Good Story” perspective, the numbers still look solid.

CD Projekt carries zero debt and has a healthy cash stash.

Their gross margins sit comfortably above 70 percent thanks to direct-to-consumer digital sales — no middlemen, more profit. But earnings remain lumpy. That’s how the hit-driven gaming business works.

When they launch a hit, profits soar thanks to operating leverage.

When they don’t, things get sour.

Speaking of hit-driven games…

Chart 3: The Witcher 4 with a planned release in 2027

Source: CD Project red, The Witcher 4, Youtube

Take-Two — Betting the House on GTA VI

Take-Two is best known as the publisher behind Rockstar Games and the legendary Grand Theft Auto franchise.

And honestly? I don’t regret a single one of the hundreds of hours I’ve sunk into GTA.

After 12 years of waiting since GTA V, the sequel is finally on the horizon.

Take-Two’s core value proposition in 2025?

Grand Theft Auto VI.

But it’s postponed.

Again.

But one day it will drop, and the anticipation only grows – fueled by endless memes (chart 4) about yet another delay. But what’s the hype all about? GTA VI isn’t just another sequel. It’s a once-in-a-decade media event. Think Taylor Swift’s Eras Tour, but with car chases and morally questionable choices. It’s the equivalent of a Marvel blockbuster and a Super Bowl ad all rolled into one.

To put it in perspective, GTA V has sold over 185 million copies and generated $8 billion since 2013.

Now imagine the sequel.

The biggest rumor?

An evolving online world with cryptocurrency mechanics and in-game economies mirroring real markets. You might literally rob a virtual bank to earn crypto.

So, you can earn a living by playing countless hours of GTA instead of having a “real job”?

Yes, it looks like it.

Beyond Rockstar, Take-Two owns 2K (NBA 2K, Borderlands), Private Division (Hades), and Zynga – anchoring its growing mobile business. That means diversification and multiple monetization levers. Players don’t just buy games anymore – they subscribe, spend, upgrade, and come back for more.

But let’s be honest: Take-Two is one big bet on GTA VI.

Everything else? Just the side dishes.

So, let’s skip the usual “Good Story” fundamentals. If GTA VI lives up to the hype, Take-Two won’t just have a good quarter.

It’ll dominate the industry and monetize that dominance for years.

If it wasn’t for the little word “if”.

Chart 4: Rockstar Games Announces Grand Theft Auto VI, coming 2025… oh no, now it is officially 2026! Or 2027 or 2028…