Kyle Giersdorf won $3 million after becoming the first Fortnite World Cup champion. This equals Djokovic’s winnings after his epic match against Federer at Wimbledon this year. Some would say that is pretty good innings for sixteen-year-old Kyle. 23,000 people were present to watch Kyle compete, 50% more than the 15,000 at Center Court.

This is demonstrative of the upward trend the gaming industry has been enjoying and growth is predicted to accelerate. In 2018, the video games market generated $131 bn, with mobile gaming outpacing revenues. According to Global Data, a leading data and analytics company, this figure is set to more than double to $300bn by 2025 at a CAGR of 13%.

Tournaments such as Fortnite as well as video content, products and special events are just some ways the industry is starting to generate recurring revenue and capitalise on increasing demand. It would appear that the initial purchase or download of a game is just the beginning of the monetisation process. Epic Games announced that it had made more than $1 bn from in-game revenue, or by selling features during the game, such as extra costumes for players. Such new business models means that investors will have a more predictable and valuable earnings stream instead of being tied to new game releases.

Developing technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation and drive gaming’s future. To benefit from this thriving industry, the Julius Baer Tracker Certificate on Video Gaming comprises of ten stocks that are well positioned to gain from this growth.