NASDAQ gaming and esports stocks: Entertainment investments
The gaming industry generates more revenue than Hollywood and global music combined. In 2025, global gaming revenue reached $188.8 billion, and analysts project it will cross $200 billion by the end of 2026. For Indian investors, this creates a compelling opportunity to own shares in companies that power digital entertainment worldwide.
NASDAQ hosts most of the world's leading gaming companies. From Microsoft's Xbox empire to Take-Two's upcoming launch of GTA VI, these stocks offer exposure to an industry growing faster than traditional entertainment sectors. Indian investors can access these stocks through the Liberalised Remittance Scheme, which permits up to $250,000 in annual overseas investments.
This guide breaks down the top NASDAQ gaming and esports stocks, analyses their financials, and explains what Indian investors should know before adding entertainment investments to their portfolios. Every data point reflects February 2026 market conditions.
Microsoft and the Activision Blizzard powerhouse
Microsoft completed its $68.7 billion acquisition of Activision Blizzard in October 2023. This deal transformed Xbox into the world's third-largest gaming company by revenue. The Federal Trade Commission dropped its challenge to the merger in May 2025, removing the last regulatory overhang.
Gaming now contributes $23.5 billion in annual revenue to Microsoft, representing roughly 9% year-over-year growth in fiscal year 2025. The company's Game Pass subscription service generates approximately $5 billion in annual revenue with 35 to 37 million subscribers. However, subscriber growth has stalled recently, raising questions about the service's ceiling.
Microsoft's gaming division faced headwinds in Q2 FY2026, with revenue declining 9% as the post-acquisition integration continues. The company also cut approximately 3,600 gaming jobs during the restructuring. Despite these short-term challenges, the Activision catalogue gives Microsoft ownership of Call of Duty, World of Warcraft, Candy Crush, and Diablo. These franchises generate billions in recurring revenue through microtransactions and subscriptions.
MSFT stock trades near $393 to $400, down roughly 22% from its $555.45 peak. For Indian investors, this pullback creates a potential entry point into a diversified technology giant whose gaming segment is a growing but not dominant revenue stream. Microsoft's cloud computing and AI businesses provide downside protection even if gaming growth slows temporarily. You can learn more about buying individual NASDAQ stocks from India through platforms like Interactive Brokers or Vested, which offer fractional shares starting at $1.
Electronic Arts: a take-private transformation
Electronic Arts surprised markets in early 2026 when Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners announced a $55 billion take-private deal at $210 per share. This deal, expected to close by June 2026, will delist EA from NASDAQ.
Before the announcement, EA delivered strong Q3 FY2026 results. Net bookings reached $3.046 billion, a 38% year-over-year increase. Battlefield 6 drove much of this growth, selling over 20 million copies and generating $1.4 billion in revenue. EA Sports FC, the company's football franchise, continues to dominate global football gaming with consistent annual releases.
EA stock currently trades between $197 and $204, below the $210 offer price. This gap reflects typical deal-closing uncertainty. For investors considering the Activision EA analysis, the key difference is clear. Microsoft acquired Activision to build a subscription ecosystem. The PIF consortium is taking EA private to capture long-term value from sports licensing and live-service games without quarterly earnings pressure.
Indian investors who own EA shares will receive $210 per share upon closing. New investors might find limited upside given the narrow spread to the offer price, though the deal validates gaming's investment appeal at the highest levels of sovereign wealth.
Take-Two Interactive and the GTA VI catalyst
Take-Two Interactive holds the most anticipated catalyst in gaming history. Grand Theft Auto VI launches on November 19, 2026, and analysts expect it to become the highest-grossing entertainment product ever released. The previous instalment, GTA V, has generated over $8 billion in lifetime revenue since 2013.
Take-Two's Q3 FY2026 results show a company building momentum ahead of this launch. Net bookings reached $1.76 billion, a 28% year-over-year increase. Mobile gaming now accounts for 49% of total bookings, driven by the Zynga acquisition completed in 2022. Titles like Match Factory and Toon Blast deliver steady, recurring revenue, reducing dependence on blockbuster console releases. This mobile diversification protects Take-Two's revenue base, even during major franchise launches.
TTWO stock trades around $193, down roughly 20% year-to-date. Analyst consensus targets $287, suggesting approximately 48% upside. The stock's current weakness likely reflects broader market rotation rather than fundamental concerns. GTA VI's launch represents a binary event that could drive significant share price appreciation in the second half of 2026.
Gaming industry growth beyond traditional consoles
The gaming market's $188.8 billion in revenue is split across three segments. Mobile gaming dominates at $103 billion, or 55% of the total market. Console gaming contributes $45.9 billion at 24%, while PC gaming adds $39.9 billion at 21%. This distribution matters because it reveals where future growth will come from.
The gaming industry's growth story is increasingly centred on artificial intelligence. Approximately 90% of game developers now use AI tools in their workflows. AI reduces development costs, accelerates production timelines, and enables smaller studios to create higher-quality content. NVIDIA powers much of this transformation through its GPU technology.
NVIDIA trades at around $172, with a market capitalisation of $4.18 trillion. While primarily known for data centre AI chips, NVIDIA's gaming segment generated $4.3 billion in Q3 2025 revenue, a 30% year-over-year increase. The company sits at the intersection of gaming and AI, making it a dual-exposure investment for those bullish on both trends.
Roblox represents another growth vector. The platform trades at around $71.70 following a strong earnings report and is projected to reach $4.9 billion in revenue in 2025. Its user-generated content model creates a flywheel effect: players build experiences that attract more players, who in turn attract more builders. The platform's daily active users continue to expand across age demographics, moving well beyond its initial younger audience into older player segments.
Esports investment: separating hype from opportunity
The esports market has grown to 640.8 million viewers globally, with industry revenue estimated between $2.1 billion and $4.8 billion depending on the measurement methodology. These numbers sound impressive, but esports investment opportunities in India require careful evaluation.
Pure-play esports stocks have largely disappointed investors. Skillz trades at just $3.13, while Engine Gaming trades at $0.79. These companies struggled to convert viewer engagement into sustainable profits. The lesson for Indian investors is that watching esports grow does not automatically translate into profitable stock investments.
The better approach is to invest in NASDAQ-listed gaming stocks that benefit from esports as one of many revenue streams. Microsoft earns esports revenue through the Overwatch League and the Call of Duty League—Take-Two benefits from NBA 2K competitive gaming. Electronic Arts generates engagement through its EA Sports FC Championship series. These companies treat esports as a marketing channel to drive game sales rather than as a standalone business. If you're exploring US market exposure beyond gaming, consider reading about the top 10 NASDAQ companies worth investing in from India to understand how gaming fits within a diversified portfolio strategy.
Mobile gaming trends are reshaping the market.
Mobile gaming's dominance at 55% of global revenue reflects a structural shift in how people play games. India exemplifies this trend with 568 million gamers and 8.45 billion annual app downloads. However, India's gaming revenue stands at just $4.38 billion, representing only 1.1% of the global market. The average revenue per user in India is $1.67, compared to $60.15 in the United States.
This gap underscores why mobile gaming trends matter for NASDAQ-listed companies. AppLovin trades near $375, though it has pulled back roughly 40% from its $733.60 peak. The company's advertising technology platform helps mobile game developers monetise their users more effectively. Sea Limited trades around $108, with its Garena gaming division generating $495.6 million in quarterly revenue primarily from mobile titles across Southeast Asia.
Unity Software, which provides the game engine powering approximately 70% of mobile games, trades near $23. The stock has fallen 37% from its December peak, reflecting concerns about competition and monetisation challenges. For risk-tolerant investors, Unity's depressed valuation could represent a contrarian opportunity if mobile gaming growth continues its upward trajectory. The company's tools remain essential for independent developers who cannot afford to build proprietary game engines from scratch.
What Indian investors should consider
Indian investors face specific regulatory and tax considerations when buying NASDAQ-listed gaming stocks. The Liberalised Remittance Scheme caps annual overseas investments at $250,000 per individual. Tax Collected at Source applies at 20% on remittances exceeding ₹10 lakh, though this amount is adjustable against your income tax liability.
Capital gains tax on US stocks follows Indian tax rules. Long-term capital gains, on shares held for more than 24 months, are taxed at a flat 12.5% without indexation benefits. Short-term capital gains are taxed at your income tax slab rate, which can reach 30% or higher. US dividends face a 25% withholding tax, though India's Double Taxation Avoidance Agreement with the United States allows you to claim credit for taxes paid abroad.
Currency adds another dimension to your returns. The rupee currently trades near ₹90.65 per dollar. Historical depreciation of 3% to 5% annually against the dollar amplifies your returns when you convert profits back to rupees. This currency tailwind benefits all US stock investments, including gaming stocks.
Gaming stocks carry sector-specific risks too. Development delays can significantly impact stock prices, as seen with multiple AAA title postponements in recent years. Regulatory crackdowns on loot boxes and microtransactions remain a concern across several jurisdictions, as competition from free-to-play titles erodes traditional publishers' pricing power. Additionally, the rapid pace of technological change means today's dominant platform could lose relevance within a few years.
The strongest approach combines gaming exposure with broader portfolio diversification. Microsoft offers gaming upside within a diversified technology company. NVIDIA provides exposure to both gaming hardware and AI infrastructure. Take-Two offers a pure-play catalyst with GTA VI. Together, these positions give Indian investors balanced exposure to the entertainment investment theme without concentrating risk in any single company. Starting with fractional shares through platforms like Winvesta or Vested makes it possible to build this diversified gaming allocation with as little as a few thousand rupees.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Table of Contents
The gaming industry generates more revenue than Hollywood and global music combined. In 2025, global gaming revenue reached $188.8 billion, and analysts project it will cross $200 billion by the end of 2026. For Indian investors, this creates a compelling opportunity to own shares in companies that power digital entertainment worldwide.
NASDAQ hosts most of the world's leading gaming companies. From Microsoft's Xbox empire to Take-Two's upcoming launch of GTA VI, these stocks offer exposure to an industry growing faster than traditional entertainment sectors. Indian investors can access these stocks through the Liberalised Remittance Scheme, which permits up to $250,000 in annual overseas investments.
This guide breaks down the top NASDAQ gaming and esports stocks, analyses their financials, and explains what Indian investors should know before adding entertainment investments to their portfolios. Every data point reflects February 2026 market conditions.
Microsoft and the Activision Blizzard powerhouse
Microsoft completed its $68.7 billion acquisition of Activision Blizzard in October 2023. This deal transformed Xbox into the world's third-largest gaming company by revenue. The Federal Trade Commission dropped its challenge to the merger in May 2025, removing the last regulatory overhang.
Gaming now contributes $23.5 billion in annual revenue to Microsoft, representing roughly 9% year-over-year growth in fiscal year 2025. The company's Game Pass subscription service generates approximately $5 billion in annual revenue with 35 to 37 million subscribers. However, subscriber growth has stalled recently, raising questions about the service's ceiling.
Microsoft's gaming division faced headwinds in Q2 FY2026, with revenue declining 9% as the post-acquisition integration continues. The company also cut approximately 3,600 gaming jobs during the restructuring. Despite these short-term challenges, the Activision catalogue gives Microsoft ownership of Call of Duty, World of Warcraft, Candy Crush, and Diablo. These franchises generate billions in recurring revenue through microtransactions and subscriptions.
MSFT stock trades near $393 to $400, down roughly 22% from its $555.45 peak. For Indian investors, this pullback creates a potential entry point into a diversified technology giant whose gaming segment is a growing but not dominant revenue stream. Microsoft's cloud computing and AI businesses provide downside protection even if gaming growth slows temporarily. You can learn more about buying individual NASDAQ stocks from India through platforms like Interactive Brokers or Vested, which offer fractional shares starting at $1.
Electronic Arts: a take-private transformation
Electronic Arts surprised markets in early 2026 when Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners announced a $55 billion take-private deal at $210 per share. This deal, expected to close by June 2026, will delist EA from NASDAQ.
Before the announcement, EA delivered strong Q3 FY2026 results. Net bookings reached $3.046 billion, a 38% year-over-year increase. Battlefield 6 drove much of this growth, selling over 20 million copies and generating $1.4 billion in revenue. EA Sports FC, the company's football franchise, continues to dominate global football gaming with consistent annual releases.
EA stock currently trades between $197 and $204, below the $210 offer price. This gap reflects typical deal-closing uncertainty. For investors considering the Activision EA analysis, the key difference is clear. Microsoft acquired Activision to build a subscription ecosystem. The PIF consortium is taking EA private to capture long-term value from sports licensing and live-service games without quarterly earnings pressure.
Indian investors who own EA shares will receive $210 per share upon closing. New investors might find limited upside given the narrow spread to the offer price, though the deal validates gaming's investment appeal at the highest levels of sovereign wealth.
Take-Two Interactive and the GTA VI catalyst
Take-Two Interactive holds the most anticipated catalyst in gaming history. Grand Theft Auto VI launches on November 19, 2026, and analysts expect it to become the highest-grossing entertainment product ever released. The previous instalment, GTA V, has generated over $8 billion in lifetime revenue since 2013.
Take-Two's Q3 FY2026 results show a company building momentum ahead of this launch. Net bookings reached $1.76 billion, a 28% year-over-year increase. Mobile gaming now accounts for 49% of total bookings, driven by the Zynga acquisition completed in 2022. Titles like Match Factory and Toon Blast deliver steady, recurring revenue, reducing dependence on blockbuster console releases. This mobile diversification protects Take-Two's revenue base, even during major franchise launches.
TTWO stock trades around $193, down roughly 20% year-to-date. Analyst consensus targets $287, suggesting approximately 48% upside. The stock's current weakness likely reflects broader market rotation rather than fundamental concerns. GTA VI's launch represents a binary event that could drive significant share price appreciation in the second half of 2026.
Gaming industry growth beyond traditional consoles
The gaming market's $188.8 billion in revenue is split across three segments. Mobile gaming dominates at $103 billion, or 55% of the total market. Console gaming contributes $45.9 billion at 24%, while PC gaming adds $39.9 billion at 21%. This distribution matters because it reveals where future growth will come from.
The gaming industry's growth story is increasingly centred on artificial intelligence. Approximately 90% of game developers now use AI tools in their workflows. AI reduces development costs, accelerates production timelines, and enables smaller studios to create higher-quality content. NVIDIA powers much of this transformation through its GPU technology.
NVIDIA trades at around $172, with a market capitalisation of $4.18 trillion. While primarily known for data centre AI chips, NVIDIA's gaming segment generated $4.3 billion in Q3 2025 revenue, a 30% year-over-year increase. The company sits at the intersection of gaming and AI, making it a dual-exposure investment for those bullish on both trends.
Roblox represents another growth vector. The platform trades at around $71.70 following a strong earnings report and is projected to reach $4.9 billion in revenue in 2025. Its user-generated content model creates a flywheel effect: players build experiences that attract more players, who in turn attract more builders. The platform's daily active users continue to expand across age demographics, moving well beyond its initial younger audience into older player segments.
Esports investment: separating hype from opportunity
The esports market has grown to 640.8 million viewers globally, with industry revenue estimated between $2.1 billion and $4.8 billion depending on the measurement methodology. These numbers sound impressive, but esports investment opportunities in India require careful evaluation.
Pure-play esports stocks have largely disappointed investors. Skillz trades at just $3.13, while Engine Gaming trades at $0.79. These companies struggled to convert viewer engagement into sustainable profits. The lesson for Indian investors is that watching esports grow does not automatically translate into profitable stock investments.
The better approach is to invest in NASDAQ-listed gaming stocks that benefit from esports as one of many revenue streams. Microsoft earns esports revenue through the Overwatch League and the Call of Duty League—Take-Two benefits from NBA 2K competitive gaming. Electronic Arts generates engagement through its EA Sports FC Championship series. These companies treat esports as a marketing channel to drive game sales rather than as a standalone business. If you're exploring US market exposure beyond gaming, consider reading about the top 10 NASDAQ companies worth investing in from India to understand how gaming fits within a diversified portfolio strategy.
Mobile gaming trends are reshaping the market.
Mobile gaming's dominance at 55% of global revenue reflects a structural shift in how people play games. India exemplifies this trend with 568 million gamers and 8.45 billion annual app downloads. However, India's gaming revenue stands at just $4.38 billion, representing only 1.1% of the global market. The average revenue per user in India is $1.67, compared to $60.15 in the United States.
This gap underscores why mobile gaming trends matter for NASDAQ-listed companies. AppLovin trades near $375, though it has pulled back roughly 40% from its $733.60 peak. The company's advertising technology platform helps mobile game developers monetise their users more effectively. Sea Limited trades around $108, with its Garena gaming division generating $495.6 million in quarterly revenue primarily from mobile titles across Southeast Asia.
Unity Software, which provides the game engine powering approximately 70% of mobile games, trades near $23. The stock has fallen 37% from its December peak, reflecting concerns about competition and monetisation challenges. For risk-tolerant investors, Unity's depressed valuation could represent a contrarian opportunity if mobile gaming growth continues its upward trajectory. The company's tools remain essential for independent developers who cannot afford to build proprietary game engines from scratch.
What Indian investors should consider
Indian investors face specific regulatory and tax considerations when buying NASDAQ-listed gaming stocks. The Liberalised Remittance Scheme caps annual overseas investments at $250,000 per individual. Tax Collected at Source applies at 20% on remittances exceeding ₹10 lakh, though this amount is adjustable against your income tax liability.
Capital gains tax on US stocks follows Indian tax rules. Long-term capital gains, on shares held for more than 24 months, are taxed at a flat 12.5% without indexation benefits. Short-term capital gains are taxed at your income tax slab rate, which can reach 30% or higher. US dividends face a 25% withholding tax, though India's Double Taxation Avoidance Agreement with the United States allows you to claim credit for taxes paid abroad.
Currency adds another dimension to your returns. The rupee currently trades near ₹90.65 per dollar. Historical depreciation of 3% to 5% annually against the dollar amplifies your returns when you convert profits back to rupees. This currency tailwind benefits all US stock investments, including gaming stocks.
Gaming stocks carry sector-specific risks too. Development delays can significantly impact stock prices, as seen with multiple AAA title postponements in recent years. Regulatory crackdowns on loot boxes and microtransactions remain a concern across several jurisdictions, as competition from free-to-play titles erodes traditional publishers' pricing power. Additionally, the rapid pace of technological change means today's dominant platform could lose relevance within a few years.
The strongest approach combines gaming exposure with broader portfolio diversification. Microsoft offers gaming upside within a diversified technology company. NVIDIA provides exposure to both gaming hardware and AI infrastructure. Take-Two offers a pure-play catalyst with GTA VI. Together, these positions give Indian investors balanced exposure to the entertainment investment theme without concentrating risk in any single company. Starting with fractional shares through platforms like Winvesta or Vested makes it possible to build this diversified gaming allocation with as little as a few thousand rupees.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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