As the videogame industry's annual trade show E3 roars on in Los Angeles, interest in the industry is spiking once more among analysts.
The combination of big media attention, promising upcoming titles, and the excitement surrounding virtual reality—plus business models that are usually more profitable than other media these days—is enough to to get Wall Street's attention.
"More people are playing games every day and spending more money on games, unlike almost every other form of media, where there's downward pressure," said Colin Sebastian, senior research analyst with Robert W. Baird & Co. "Games are still a growing industry and [they're] becoming more dynamic....Video games should be near the top of the lists of investors."
But the sector is more complex than it might seem on the surface. If you're considering putting money into the industry, here are a few things to keep in mind.