Will These 3 Gaming Stocks Level Up in 2025?

The gaming industry could enjoy a return to growth in 2025 fueled by a number of key launches. Who will be the sector leaders?

Feb 11, 2025

The gaming sector is expected to return to pandemic-era growth levels in 2025;
New hardware and game releases are set to spur demand;
An increased price tag for blockbuster games could help reverse decades of price deflation despite production cost increases.
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After a difficult 2024, the gaming industry could enjoy bumper growth in 2025, fueled by a number of catalysts, including the launches of Nintendo’s [NTDOY] Switch 2 hardware and Take-Two [TTWO] publisher Rockstar’s Grand Theft Auto VI.

This is according to DFC Intelligence, which released an industry outlook at the end of last year. Founder David Cole told GamesBeat that the Covid-19 pandemic had caused “an artificial and temporary spike in demand” for gaming hardware and software. This was followed by a couple of fallow years.^[1]

This year, Cole expects the gaming industry to surpass the record growth it recorded during the pandemic.

In this article, we will take a look at what is in store for Nintendo, Take-Two and Electronic Arts (EA) [EA] in 2025, starting with a closer look at the three companies’ recent financial performance.

3 Gaming Stocks to Watch in 2025

EA Stock

The California-based games publisher reported weak sales for its Q3 2025, with revenue down to $1.88bn from $1.94bn a year earlier. Net income rose slightly from $290m to $293m.^[2]

Q3 “was not the financial performance we wanted, or expected,” EA CEO Andrew Wilson said on the earnings call.^[3] EA FC 25 underperformed, while Dragon Age “did not resonate with a broad enough audience in this highly competitive market,” he added.

The company reiterated its full-year net bookings of $7bn–7.15bn. Guidance had been lowered from $7.5bn–7.8bn when preliminary results for the quarter were released back in January.^[4]

Preliminary results caused EA stock to plunge to a 52-week low of $115.21 on January 24, having set a 52-week high of $168.50 on November 22.

Nintendo Stock

The Kyoto-based company disappointed investors in early February by slashing its full-year forecast. Revenue for the 12 months to March 31 is forecast to fall 28% to ¥1.19trn, while net profit is forecast to decline 45% to ¥270bn.^[5]

The outlook cut is down to lower-than-expected Switch sales. It expects to have shifted 11 million units in the fiscal year, down from a previous target of 12.5 million.^[6]

“The Switch had a great run, but now it’s really high time for a successor,” Serkan Toto, CEO of consultancy Kantan Games, told Bloomberg, referring to the upcoming Switch 2.^[7]

Take-Two Stock

The video game holding company posted a loss of $0.71 per share on revenue of $1.36bn on February 6.^[8] This was narrower than the analyst consensus of a loss of $0.95 per share on $1.4bn.^[9]

Management reiterated its full-year net bookings forecast of $5.57bn–5.67bn, but raised its earnings outlook. It now expects to report a loss of $4.50–$4.17 per share, revised down from previous guidance of $4.80–$4.43 per share.^[10]

The TTWO share price jumped to a 52-week high of $212.88 on February 7 following the results and news that the release of GTA VI should not be delayed.

Gaming Stocks’ Gains

Gaming stocks have had a strong start to 2025. The VanEck Video Gaming and eSports ETF [ESPO] is up 10.37% since the start of 2025, 41.15% in the past six months and 53.31% in the past 12 months.

EA, NTDOY & TTWO Fundamentals Comparison

All three stocks could be considered overvalued based on their current year’s revenue projection. However, the expected jump in sales in the following year means that they could be stocks to watch for an entry point.

EA Stock: The Investment Case

The Bull Case for EA

Despite the recent underperformance of EA FC 25, EA’s sport titles, including the Madden NFL series, are its marquee products and key revenue drivers. On January 15, the company gave EA FC 25 a gameplay refresh and, according to Wilson, early feedback from players has been positive.

“We remain confident in our long-term strategy and expect a return to growth in FY26, as we execute against our pipeline,” said Wilson in a statement issued with the preliminary Q3 results in January.^[11]

The Bear Case for EA

The FIFA license, which EA dropped a couple of years ago, has been picked up by Take-Two subsidiary 2K. The first title, FIFA 2K25, should launch later in 2025.

While EA has previously said it is not threatened,^[12] if the new title offers more compelling gameplay and features then this could potentially impact sales of the next EA FC title, due for release in September.

NTDOY Stock: The Investment Case

The Bull Case for Nintendo

Sales of the Switch console, which turns eight this year, have been declining for some time.

There is only so much that software updates and new game releases can do for an aging console. In this sense, the release of the Switch 2 is coming at the right time.

While Nintendo has announced the next-generation console, there has been no word on an official release date. The company will share more details on April 2.^[13]

The Bear Case for Nintendo

George Jijiashvili, Senior Principal Analyst at Omdia, told CNBC last week that the success of the Switch is a “double-edged sword”.^[14]

“The biggest challenge will be managing the transition effectively — convincing users to upgrade to the Switch 2 while ensuring those sticking with the original Switch remain supported and engaged,” said Jijiashvili.

TTWO Stock: The Investment Case

The Bull Case for Take-Two

Take-Two confirmed on its earnings call last week that Rockstar’s highly anticipated GTA VI is on track to release in the autumn.

“This calendar year is shaping up to be one of the strongest ever,” said CEO Strauss Zelnick on the earnings call. The publisher will also release Civilization VII on February 11, Mafia: The Old Country in the summer and Borderlands 4 before the end of the year.

“We are exceedingly optimistic about the commercial potential of our titles and believe they will have a transformative effect on our business and our industry over the long term,” Zelnick added.

The Bear Case for Take-Two

There is no denying that GTA VI will be the game release of the year, if not the decade. But it is likely to come with a hefty price tag.

Matthew Ball, Managing Partner of Epyllion, a venture capital firm focused on the gaming industry, believes a price tag of up to $100 “could re-establish packed video game prices after decades of deflation despite rampant cost growth.”^[15]

However, GTA VI’s success will ultimately be judged on its sales. The question is whether some gamers will be deterred by the price tag.

Conclusion

The gaming industry is poised to bounce back to growth this year, with the help of hardware and new title releases. EA, Nintendo and Take-Two could be three stocks to gain from an industry upturn.

This is for informational purposes only. OPTO Markets LLC does not recommend any specific securities or investment strategies. Investing involves risk and investments may lose value, including the loss of principal. Past performance does not guarantee future results.

^[1] https://venturebeat.com/games/the-games-industry-will-come-back-to-growth-in-2025-dfc-intelligence/

^[2] https://s204.q4cdn.com/701424631/files/doc_financials/2025/q3/Q3-FY25-Earnings-Press-Release-FINAL.pdf

^[3] https://www.fool.com/earnings/call-transcripts/2025/02/05/electronic-arts-ea-q3-2025-earnings-call-transcrip/

^[4] https://ir.ea.com/press-releases/press-release-details/2025/Electronic-Arts-Pre-Announces-Preliminary-Q3-FY25-Results/default.aspx

^[5] https://www.nintendo.co.jp/ir/pdf/2025/250204e.pdf

^[6] https://www.nintendo.co.jp/ir/pdf/2025/250204_4e.pdf

^[7] https://www.bloomberg.com/news/articles/2025-02-04/nintendo-lowers-outlook-after-sales-and-profit-miss-estimates

^[8] https://ir.take2games.com/static-files/4d81f3f6-cf24-44fa-892b-8ace44767349

^[9] https://www.barrons.com/articles/take-two-earnings-stock-price-0c8df088

^[10] https://ir.take2games.com/static-files/9aa55113-4f45-4264-8ff6-822353eddcd8

^[11] https://ir.ea.com/press-releases/press-release-details/2025/Electronic-Arts-Pre-Announces-Preliminary-Q3-FY25-Results/default.aspx

^[12] https://www.eurogamer.net/eas-sports-fc-team-isnt-worried-about-that-rumoured-fifa-revival