Are video games a good investment? What parents should know

Video games have come a long way since the pixelated arcade classics of the '80s. Today, they generate more revenue than the movie and music industries combined. With all that growth, it makes sense to wonder: could video games be a good investment?

The short answer? Maybe. Like most investments, there are potential rewards and real risks. Let's break it down for families wondering if video games belong in their financial plan.

What counts as a video game investment?

When people talk about investing in video games, they usually mean one of two things:

1. Collecting physical games — Buying sealed, rare, or vintage games with the hope they increase in value.

2. Investing in gaming stocks — Buying shares of companies like Nintendo, Sony, or Activision Blizzard.

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There's also a growing niche of people investing in digital assets like in-game items, but that space is even riskier and often lacks regulation.

Do physical video games appreciate in value?

Some do. Especially vintage games that are unopened, in pristine condition, and part of a beloved franchise (think: original Zelda or Pokemon Red). 

A copy of Super Mario 64 sealed in its original box sold for over $1.5 million in 2021. The sale broke a record set just two days prior when an original Nintendo Entertainment System (NES) cartridge of the Legend of Zelda sold for $870,000.

The Super Mario 64 game was given a 9.8 A++ rating by WATA Games, a video game collecting and grading company. This signified the game was in near-perfect condition and sealed as if it was “like new.” Another copy of the same game that was graded a 9.6 A++ rating sold for $13,200, showing how high the variance in prices for games.

The Legend of Zelda copy was produced in an early production run in 1988, making it one of the first, and only known remaining, copies of the popular series ever made.

Here are a few more examples:

• An original NES cartridge of Super Mario Bros sold for $660,000. 

• A copy of Final Fantasy III for the Super Nintendo sold for $96,000.

• A copy of Zelda: A Link to the Past also sold for $96,000.

• Highly graded, sealed copies of Pokémon Yellow have been valued around $10,000.

• Panzer Dragoon Saga for Sega Saturn, due to its limited run, can fetch over $1,000 even in used, unsealed condition.

These standout sales show that rare, sealed games in excellent condition can fetch big bucks, but they’re the exception, not the rule. Most games won’t reach five or six figures, which is why it’s helpful to approach collecting with curiosity, not just dollar signs.

The pandemic also fueled a retro collecting boom. PriceCharting reported that vintage game values rose 42% from February 2020 to May 2021 alone. While that pace has cooled, it shows how outside factors can influence price.

Is it too late to start collecting?

Not necessarily! While some markets have cooled off, there are still opportunities, especially for parents and kids interested in a shared hobby. The key is to collect for fun first, and view the potential financial upside as a bonus. It can also teach patience and research — two essential investing skills.

Trends and insights worth noting

• Grading services: Companies like WATA Games and VGA assign condition scores to sealed games, much like PSA does with sports cards, Pokemon cards, and other types of trading cards. Professionally graded games can command significantly higher prices.

• Sealed vs. loose games: Sealed games typically hold more value, while loose cartridges or discs may hold only sentimental worth.

• Retro reprints: Publishers like Limited Run Games re-release classic titles. While fun, these usually don't appreciate the same way originals do.

• Fakes are rising: As prices climb, so do counterfeit risks, especially for rare titles bought online.

• Digital access may shift demand: Subscription services like Nintendo Switch Online or Xbox Game Pass include classic games, potentially softening demand for physical copies.

Tips for families exploring video game investing

• Start small: Pick one or two games to research and track over time.

• Involve your kids: It’s a fun way to build financial literacy together.

• Document everything: Save receipts, track values, and learn from the process.

• Set goals: Are you investing for fun, education, or future profit? Clarifying that helps manage expectations.

What about investing in gaming companies?

This route is more like traditional stock market investing. Public companies in the gaming space may grow over time as the industry expands, and some even pay dividends. It's also a great way to get older kids interested in the stock market. Just remember: individual stocks carry risk, so diversification and research are key.

Risks to keep in mind

• Volatility: Like any market, gaming stocks and collectibles can rise or fall quickly.

• Hype-driven bubbles: Prices may surge due to trends, only to crash later.

• Storage and authenticity: Physical game collecting requires careful preservation and a watchful eye for fakes.

• Liquidity: Unlike stocks, collectibles may take time (and effort) to sell.

So, are video games a good investment?

They can be, but they probably shouldn't be your family's first (or only) investment. Think of them more like a hands-on learning tool or a passion project that might pay off. If your child loves games, it could be the perfect bridge into conversations about value, supply and demand, and long-term thinking.

Investing is for kids, too. With Greenlight, kids can learn to invest with parental approval on every trade. Build their financial confidence! Try Greenlight, one month, risk-free.†

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.