Last week, the U.S. Department of State announced a new plan to unite young people across the world, and it could funnel capital into one of the world’s highest-potential industries.
In partnership with the Stevens Initiative and the nonprofit Games for Change, the U.S. Government is rolling out a project that they’re calling Game Exchange. The online exchange program is aiming to connect students in the United States to those in Israel, United Arab Emirates, and Bahrain in a 10-week program where they will develop and create their own social impact video games.
By emphasizing the social aspects of gaming, the program aims to use STEM education and skill development to fostering conversations and cross-cultural experiences between young people. In its first round, the project is looking to connect students in Middle East and North Africa countries to students in the U.S.
And with the program announcement, the U.S. Government is sending a unique message: video games can serve as a platform for building relationships, healing divides, and easing social tensions.
That’s a ringing endorsement for the video game industry… so it’s no wonder we’ve seen cash pouring into the sector.
The video game industry saw a massive surge in 2020. Amid pandemic lockdowns and restrictions that were put in place early in the year, the industry’s worldwide revenue rose to a staggering $179.9 billion.
Some of the biggest names in U.S. video game publishing exceeded growth expectations in 2020, too. Activision Blizzard, Electronic Arts Inc., and Take-Two Interactive Software Inc., were up 49%, 30%, and 64% respectively at the end of the year.
And with both Sony and Microsoft still gaining from the release of the newest PlayStation and Xbox versions last November, I’m not expecting the trends to halt in 2021.
Some newer gaming companies have already dominated on the public market this year. Playtika, the Israeli mobile game company, raised $1.88 billion in its debut on the market in January. The video game platform Roblox also went public in March via a direct listing, ending its first day on the market with a $38.26 billion market cap.
It’s not a tough call to make: the video game industry is going to ride this high for months to come.
That’s why this news is so big for investors. Game Exchange is contributing to a massive global market here, and funding advocacy from the U.S. Government is bound to send the already soaring market into overdrive. For angel investors, this initiative could not have come at a better time.
Games for Change has a promising track record, too. Students in its past game development programs have gone on to earn full university scholarships, and many have started their own video game studios. The grants awarded to Games for Change by the Stevens Initiative for this new program are expected to reach about 75,000 young people in Game Exchange’s target areas.
That’s 75,000 sources of untapped potential, and 75,000 possible founders for gaming startups in the near future.
In other words, your avenues for making historic gains are multiplying by unparalleled numbers.
We’re on the heels of the next surge of an already booming industry. And with financial backing from the U.S. government, I can’t see this space disappointing us any time soon.
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That’s all for today. I’ll be in touch with more soon.
Until next time,
Meet Neil Patel
Neil Patel is a successful entrepreneur and investor who has been active in the startup scene for nearly two decades. Born in London, England, he moved with his family to Orange County, California when he was two years old, where he was surrounded by entrepreneurs and innovators from an early age. Neil is the founder of several companies, including Crazy Egg, Hello Bar, and Quicksprout – companies that established Neil as one of the world’s leading digital marketers. But Neil spends more time these days on the other side of the table – as an angel investor. He has made some unbelievable returns backing early-stage startups. Now, he’s here to teach you to do the same. Neil launched the Angels & Entrepreneurs Network to pull back the curtain on the world of “pre-IPO” investment, because he believes everyone should have access to the same playing field – not just society’s high and mighty.