Levelling Up Your Portfolio: The Untapped Potential of Investing in Classic Video Games

When people talk about investments, stocks, bonds, and real estate usually come to mind. However, a rising trend in the investment landscape is shifting the spotlight onto something far more nostalgic: classic video games. Yes, you read that right. Your childhood pastime has not only resurfaced in pop culture but has also found its place as a potentially lucrative investment. This article will dive deep into how retro video games are becoming collectors' items and how their value can appreciate over time.

The Rebirth of Retro: A Surge in Nostalgia

In recent years, the desire for nostalgic items has grown exponentially, fuelling the resurgence of retro video games. This increasing demand is primarily driven by Millennial and Gen Xers who long for a simpler time before the world was taken over by advanced gaming consoles and virtual realities. But it's not just the sentiment that's driving up prices; it's also the rarity, condition, and historical significance of these games that make them valuable assets.

Why Retro Video Games?

Scarcity

The scarcity of well-preserved classic games makes them a hot commodity. Limited editions and once-banned titles are even more sought after.

Condition

Like any collectable, the condition of a video game is crucial. A mint-condition game with its original packaging and instruction manuals is a collector's dream.

Historical Significance

Games that marked a turning point in the gaming industry, introduced innovative mechanics, or have a devoted fan following tend to appreciate more in value

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The Economics: How Much Can They Appreciate?

You'll be surprised to learn that some retro video games have appreciated by as much as 800% over the past decade. For instance, a copy of "Stadium Events" for the NES, originally sold for around $30 in the late 1980s, has been known to fetch up to $41,300 at auction today.

The general trend shows that games released between the late 1970s to early 2000s have seen significant increases in value, provided they are in excellent condition and possess elements that make them unique.

Notable Games Worth Investing In

• Earthbound (SNES)

• Panic Restaurant (NES)

• Super Mario Bros (NES) [First Edition]

• The Legend of Zelda (NES) [Gold Cartridge]

How to Start Your Investment Journey

1. Research: Understand the market, the notable games, and their current values.

2. Authentication: Always ensure the game is authentic and not a reproduction.

3. Condition Assessment: Prioritise games in mint condition and complete with original packaging.

4. Diversification: Like any investment, it's good to diversify. Don't just stick to one genre or console.

5. Safe Storage: Store your collection in a climate-controlled environment to preserve its condition.

Risks and Considerations

• Market Volatility: The market is still relatively new and can be susceptible to trends.

• High Entry Costs: Some highly sought-after titles already come with a hefty price tag.

While not as traditional as other investments, the burgeoning market for retro video games offers an intriguing and potentially profitable venture. As these games continue to appreciate in value, they not only offer financial returns but also a sentimental journey down memory lane. If you're looking to diversify your investment portfolio or are a gaming enthusiast with an eye for the classics, it might be time to hit the "start" button on investing in retro video games.