Before you buy the latest game – it is time to meet their makers

The value of a child’s toy can vanish after a playground mishap but the value of its maker is going up and up.

Toy and video games sales have jumped this year as families have spent more time at home, according to NPD Group, a market researcher. Sales of toys were 19pc higher in the year to September, while games rose 23pc.

Here we take a look at the best gaming stocks to buy so your present grows in value by next Christmas, rather than ending up in a charity shop.

GAMES WORKSHOP This FTSE 250 firm makes and sells miniature tabletop war games and figurines, famously the Warhammer series.

Rob Burgeman, of wealth manager Brewin Dolphin, said: “It has been one of the success stories of lockdown with its shares up an extraordinary 71pc this year. This has propelled it to the doors of the prestigious FTSE 100 index.”

Games Workshop made pre-tax profits of £90m between June and the end of November, up from £ 59m in the same period of 2019. It also increased its dividend by 20pc to 60p per share.

‘Many retailers sold out of Sony’s PS5, which bodes well for the additional sides to the business’

SEA LIMITED This Singapore-based company’s stock has risen fivefold this year on the back of lockdown sales and Asia’s fast economic recovery. It is the largest holding of the £1.7bn Baillie Gifford Pacific fund.

Roderick Snell, the fund’s co-manager, said: “Sea’s smash hit Free Fire, a survival shooter game, was the world’s most downloaded mobile game in 2019 and so far in 2020. The company now dominates gaming across Asia and South America.”

The firm also offers financial services via SeaMoney, so is well placed to benefit as we do more shopping online – including in-game purchases.

SONY Orders for the new PlayStation 5 console are well ahead of what Sony expected. Many online retailers sold out of the PS5 in seconds when it launched in November and the company’s share price is up by a third since January.

“This bodes well for the additional sides to the business that support this, such as new game releases and films,” Mr Burgeman said.

Omdia, an analytics firm, said that Sony would sell more PS5s this year than rival Microsoft would sell of its Xbox consoles, and that it expected the margin would continue to widen in coming years.

ACTIVISION BLIZZARD This American video game company has grown its player base by 30pc in the year to June, adding more than 100 million monthly gamers.

Activision Blizzard owns popular series such as Call of Duty and World of Warcraft, as well as Candy Crush. It has the advantage of not being tied to a console or platform, so can make games for a computer, mobile, Xbox or PlayStation. Its share price has risen on the back of good results during lockdown.

THE WALT DISNEY COMPANY This business has had a tough year due to Covid-19 with its parks, film releases and gift shop sales all disrupted and its cruise ships berthed.

However, there is “something for everyone from Disney”, said Mr Burgeman. Its film catalogue includes Star Wars, Indiana Jones, Pixar family favourites and Marvel. The firm should also do well as it develops its streaming service Disney+ and as resorts and cinemas hopefully reopen next year.

VANECK VIDEO GAMING AND ESPORTS ETF This exchange-traded fund offers general exposure to the gaming market. It invests in a basket of about 25 video game stocks including Sea Limited, Activision Blizzard and Nintendo.

It returned 72pc between January and December this year, compared with the stock market’s 13pc.

The Call of Duty series has helped owner Activision Blizzard grow its player base by 30pc in a year