The Market of Console Games and Investment Portfolios of Corresponding Video Game Companies Impacted By COVID-19

Abstract

At the beginning of 2020, the global COVID-19 outbreak brought about dramatic changes in people's lifestyles. Governments enacted quarantine policies. Everyday activities such as work, study, and entertainment became online. The reduction of offline socialization led people to focus on gaming entertainment. More people became interested in console games as an immersive pastime. This brought investment opportunities to the console game market. The study selected four stocks in the console game market, Nintendo, Take-Two Interactive, Sony, and Ubisoft. The research used the Markowitz Portfolio Optimization Model (MPT) to create low-risk and high-return portfolios and analyzed the investment potential and investment strategies of the console game market. The conclusion indicated that the four stocks all have different levels of changes after the outbreak of the epidemic. Investors reasonably use the investment portfolio established by the MPT model to buy and sell stocks, which can effectively reduce investment risks and obtain doubled returns.