A graph of why I'm bullish on the PC gaming industry

Submitted by cruss0129 t3_z7cbun in wallstreetbets

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Above is a graph of concurrent users on Steam, the largest internet marketplace for videogames (per steamdb.info). Starting in 2004, with just about 84k users, up to today with about 32 million, Steam has shown approximately 200% YoY user growth over an 18 year period that only continues to accelerate. Although Valve, creator of Steam, is a private company, several companies that are publicly traded thrive from the ecosystem that this company has created - some of which being MSFT, AMD, NVDA, EA, ATVI, SONY, NCBDY(otcmkts), and countless others. Once we see the light at the end of the tunnel of interest rate hikes ending (as rising interest rates are the destroyer of everything in creation), this will be a big place that my sitting cash will go.

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Maverikfreak t1_iy6a14l wrote

Did you guys remember CRSR? I still have my bag, -40%, One of my best performers

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PortfolioIsAshes t1_iy5xoda wrote

Your entire "DD" sounds like you just discovered Steam, or you are bagholding one of the companies.

Steam is a direct competitor to Microsoft Store, I don't know how you think MSFT would benefit from it when Microsoft Store is doing so shit that MSFT gave up and listed some of their top games like Microsoft Flight Simulator and Minecraft Dungeons on Steam.

NVDA is going to eat shit next quarter, their 4000 series aren't flying off the shelf because of all the scandals and shitty engineering, scalpers are struggling to get rid of the 4000 series cards they hoarded. Nobody is upgrading, even if they are, they're going for 3000 series whose price got lowered to the point where it's sold at a loss to clear inventory.

EA and ATVI are some of the most hated gaming companies for consumers. Even on Steam, their event sales usually have one of the lowest sales numbers. EA is carried by Apex, and ATVI by COD. Both's recent future guidance is dog shit and was already talked about recently.

PS5 is doing so bad that SONY went back on their words and started listing console exclusive on PC. Which works to your advantage if you are bullish on PC building.

Also, Steam is essentially a gamers' equivalent of booze and hoes, top selling games are either triple A games by a big publisher, porn games, or skimpy weeb games by Koei-Tecmo/Capcom/Square Enix. Top 5 games with the most concurrent players are literally f2p on cosmetic/battle pass system.

Your post would make sense last year or 2020, not now where all of them are going to take a hit due to economy situation. It'll take years before you start seeing green if you buy now, Bullard, JPow and the FOMC minutes already firmly stated interest rate hikes aren't stopping at least until 2024 so I don't know what fucking regarded copium you are huffing.

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silicon_replacement t1_iy693yw wrote

As for $nvda, the market really hopes on it's data center revenue growth, client side, not so much, if you look at stat from steam itself , majority is running on hardware lower than 3060, I guess most of these gamers are poor kids from developing countries

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cruss0129 OP t1_iy6bhws wrote

With respect to PC gaming, Cloud gaming from its data centers is one direction things may go in the future (GeForce NOW is what the service is called i believe, but it’s not on par with owning hardware by any means). Once the internet gets faster and decreases latency to the point that streaming looks and feels indistinguishable from running on hardware, I foresee mid to low level client devices (like the steam deck and Nvidia shield) being powered by subscriptions to higher end computing.

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silicon_replacement t1_iy6c5x4 wrote

Most driver on biz side of $nvda is machine learning as big corps are expereimenting what they can do with it,

Will be machine scan court documents

Crazy kitten project for air force

Test bed for FSD with digital twin

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3lobed t1_iy5zuuf wrote

The best posts are when people just say that their niche hobby is growing and that's why you should invest in it.

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cruss0129 OP t1_iy61pzv wrote

It's not a niche hobby if me, your wife's boyfriend, and 32 million others are doing it img

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Darth_Laidher t1_iy5zsfy wrote

To be fair, during lockdowns was awesome for online gaming companies and e-sports. Made a load off e-sports alone.

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VisualMod t1_iy5sjlc wrote

>That's an impressive graph. It's clear that Steam is a powerful force in the gaming industry and it looks like it will continue to grow at an exponential rate. I'm definitely interested in investing in companies that are associated with Steam, as they are sure to benefit from its continued success. Thanks for sharing!

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cruss0129 OP t1_iy5t2qt wrote

I build PC’s for a hobby and thought it was something worth sharing! It’s one of the most vital ecosystems in the computer world

To explain what I mean: from a hardware perspective, every single user on this list has at least one CPU (intl or amd) and most everyone has at least one GPU (amd or nvda). From a software perspective, the most common OS to run games is a variant of windows (msft) and the game devs themselves are a huge list of companies. Even Xbox (msft) and Sony (sony) are starting to release their exclusive games to steam to increase market share and, therefore, create syndication.

PC gaming is also becoming more affordable and accessible relative to console sales. Although a series X is possible to acquire, it’s harder (at least in my area at this time) to acquire a PS5 than it is a 4090 gpu (despite price differences).

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VisualMod t1_iy5siy2 wrote

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BlackWhiteVike t1_iy6hr1d wrote

PC gaming % also shrunk to the lowest market cap it’s ever been at.

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cruss0129 OP t1_iy6lr6u wrote

Care to share a source for that timeframe-less data?

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