The video game industry is witnessing significant layoffs.

Unity Software Inc., a game engine company, recently announced that it would be slashing its workforce by 284 employees. This is the second round of layoffs at the company in less than a year. Meanwhile, Playtika Holding Corp., held by the fund, let go of 600 employees in December and Riot Games, the developer of League of Legends, recently laid off employees in its publishing, recruiting, and esports departments.

The layoffs, however, are not necessarily a reflection of video game sales. Analysts believe the downsizing is largely related to the tech sector in general. During the pandemic, the tech industry hired waves of new people, who are now not needed thanks in large part to the new economic reality. The truth is that the video game industry isn’t recession-proof; it is reactive to markets just like so many other industries.1

But despite all the recent bad news and layoffs, there is one giant in the industry defying the odds: Nintendo Co.

Nintendo Co. plans to increase its production of Nintendo Switch consoles after shipping nearly 21 million units over the last year. The company has advised its suppliers and assembly partners that it plans to produce more units starting in April. In November 2022, the company lowered its sales forecast for the console to 19 million units due to component shortages.2

Hero ETFs
Source: Nintendoswitch


Roblox Corp.

Roblox Corp. is a leader in offering digital immersive experiences to its users.

On January 17, the company reported some key metrics for December 2022. According to the report, daily active users jumped 18% to 61.5 million compared to December 2021, hours engaged were up 21% year-over-year, estimated books were between $430 million and $439 million, up 17% to 20% year-over-year, and the estimated average bookings per daily active user were between $6.99 and $7.14.3

It’s worth noting that activity and engagement measures are critical for companies like Roblox because more activity could result in higher revenue and ultimately higher profits.

Hero ETFs
Source: Roblox

Paradox Interactive AB

Paradox Interactive AB develops and publishes video games for PC, mobile, and consoles. Some of its brands include Stellaris, Age of Wonders, World of Darkness, Surviving Mars, Prison Architect, Europa Universalis, Hearts of Iron, and Crusader Kings.

After a nine-year hiatus, Paradox Interactive and Triumph Studios recently announced the release date for Age of Wonders 4. This video game will be available for PlayStation 5, Xbox Series X and S, and PC as of May 2, 2023.

Age of Wonders 4 will employ strategy RPG combat with turn-based combat. Players can create empires of their choosing and can also blend different cultural traits into their people who later engage in combat.4

Source: Paradoxinteractive

Investing in Video Games with HERO ETF

Looking to invest in video games? Consider Canada’s first esports and egaming ETF, the Evolve E-Gaming Index ETF (HERO ETF). HERO ETF is an index-based exchange-traded fund that invests in the leading video game companies across the globe. To learn more about HERO ETF, please click here:


For the month, Netease Inc. made the largest contribution to the Fund, followed by Roblox Corp. and Take-Two Interactive Software. The largest detractors to performance for the month were Gumi Inc. followed by Capcom Co. and Digital Bros. On last rebalance, these securities were added to the portfolio: Webzen Inc. and Paradox Interactive AB.

For the latest information on investing in video games and industry updates on related investment products, sign up for our weekly newsletter here.



  1. D’Anastasio, C. and Papachristou, L., “Video Game Industry Feels Pain of Big Tech Job Cuts,” Bloomberg, January 20, 2023;
  2. Mochizuki, T., “Nintendo Plans to Boost Switch Output to Meet Resilient Demand,” BNN Bloomberg, January 19, 2023;
  3. “Roblox Reports December 2022 Key Metrics,” Roblox Corporation, January 17, 2023;
  4. Dinsdale, R., “Age of Wonders 4 Announced, Arrives This Spring,” IGN, January 19. 2023;


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