The Nintendo Switch 2 sold 3.5 million units in its first four days back in 2025.
Thousands lined up outside GameStop and Best Buy.
The result? Nintendo's market cap jumped $39 billion.
But this isn't just about Nintendo - it's about a massive shift happening across gaming.
As more people play video games, companies building the infrastructure, hardware, and content are seeing serious growth.
Two of the biggest beneficiaries? Electronic Arts (EA) and Take-Two Interactive (TTWO).
But it’s not just gamers that are boosting EA and Take-Two.
Both have attracted attention from the Saudi Sovereign Fund.
Why would Saudi Arabia be interested in these two stocks and which one may be the better bet for investors watching this shift?
Let’s compare EA and TTWO - we’ll take a look at what’s driving investment, the potential opportunities, and risks investors need to know about.
If you want more info and data on both of these stocks, subscribe to Market Briefs Pro.
The Gaming Boom Is Real
Gaming revenue hit $184 billion in 2024. That's more than the NFL and the entire movie industry combined.
By 2030, an estimated 3.8 billion people will be playing video games - up 500 million from 2025.
Gaming is a massive cultural phenomenon that attracts billions of players.
But let’s take a look at how companies like EA and TTWO make money, run their businesses, and why they could be attractive investments for investors.
EA Stock: The Sports Franchise Machine
EA has a lock on the sports gaming market. Every year, millions of players buy the latest version of Madden or FC, often spending even more on in-game purchases.
That recurring revenue model has kept EA profitable and growing, even as other game publishers struggle.
The Numbers:
- EA's stock grew around 40% in 2025.
- The company earns massive licensing revenue from sports leagues.
- EA Sports FC alone is one of the best-selling game franchises globally.
Saudi Arabia's Public Investment Fund (PIF) plans to take the company private sometime soon, after it struck a deal to own 94% of the company in 2025.
The Risk: EA's model is heavily dependent on licensing deals with organizations like the NFL and major soccer leagues.
If those deals fall through or become too expensive, EA could lose its edge.
TTWO Stock: The Blockbuster Hit Maker
TTWO doesn't release games every year like EA does. Instead, they focus on massive, high-budget titles that can take years to develop.
Grand Theft Auto V is one of the best-selling games of all time and is made by TTWO. GTA 6 is expected to drop soon, and analysts are predicting record-breaking sales.
The Numbers:
- TTWO stock grew over 30% in 2025.
- Revenue has grown steadily, especially during major game releases.
- The company benefits from both game sales and ongoing in-game purchases.
In February 2021, Saudi Arabia's Public Investment Fund acquired 5.4% of TTWO for an estimated $826 million.
When the PIF increased its stake to 6.8% in 2022, TTWO's stock spiked again.
The Takeaway: TTWO's share prices have moved alongside PIF investments, even when the company didn't have a major release.
That suggests investor confidence in the company's long-term potential—\ - especially with GTA 6 on the horizon.
EA vs TTWO: Key Differences
| EA Stock | TTWO Stock | |
| Strategy | Annual releases, sports focus | Blockbuster hits, longer dev cycles |
| Revenue Model | Recurring (yearly games + microtransactions) | Explosive (big launches + long-tail sales) |
| 2025 Performance | Up 40% | Up 31% |
| Risk | Licensing deals | Long waits between releases |
Which Stock Is the Better Buy?
Which one is better depends on your goals and risk tolerance as an investor.
There’s a solid chance that EA may no longer be a public company in the coming years or months.
It may continue to be a power house in gaming though.
On the other hand, TTWO has just as many blockbuster titles, but hasn’t seen as explosive of growth.
Either way, investors should realize one thing about gaming: It can be volatile.
That’s because many gaming companies rely on new games as the driver of their revenue.
One bad game and shares could drop.
Still, it’s hard to ignore gaming stocks with demand for gaming going up and major investment funds dropping billions of dollars on companies like TTWO and EA.
The Bottom Line
3.8 billion people pick up controllers, PCs, and phones, the companies making the games are raking in billions.
EA and TTWO are both benefiting from this shift - and both may be opportunities that investors keep an eye on in the future.
Our dove even deeper into the data and research of this shift in Market Briefs Pro.
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