The social impacts of gaming
Gaming is an industry where the social impacts, such as addiction, childhood usage and aggression, are widely acknowledged, but there tends to be less understanding around the risks, the validity of those risks, and the potential investment implications.
The negative social impacts of gaming, including gaming disorder and gambling, make the industry vulnerable in terms of increasing regulation. While we have seen outright bans introduced in China and South Korea, we think that it is unlikely Western countries will follow.
We believe, however, that there is scope for additional laws and intervention which may have significant implications for gaming companies. Nevertheless, we do see potential within the interactive fitness space, where exergames can have a positive impact on users. As the technology develops, we may see exciting positive developments and we expect this to be a growing area.
The Newton responsible investment team
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1097824 Exp: 06 September 2023