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Will The Old Republic Be The Next World of Warcraft?

Or will it be the next Star Trek Online? If you know the answer to this question, you could potentially make alot of money.

Gerald Belman, Blogger

September 21, 2011

2 Min Read

So I just wanted to write one more blog post about investing in the video game industry from a common stock holder's standpoint. Many of you who perused my previous two posts were probably wondering how any of this financial information is useful to you (or entertaining). All these numbers that I presented in my last two posts. They don't really help you make money. The only thing that will allow you to do that is to predict the future(specifically to predict a future that nobody else expected).

My advice to people who want to handle their own investments is always to be objective and focus on the industries that you personally know alot about. If you know alot about video games (and feel you can be objective about their chance for success) then what better way to use that knowledge then to make some money. Why would you invest in motorcycles if you know nothing about motorcycles.

However, many of you are so passionate about video games that you can no longer be objective about them(hell, maybe I am too). So watch out for that too.

That being said I want to discuss specifically Electronic Arts and their release of Star Wars: The Old Republic. Will it be the next World of Warcraft? If it will then you should invest in Electronic Arts immediately.

I like Star Wars but I often think it has stupid plot items. However, if done correctly I see huge potential for people to get involved in this game. There is so much untapped nostalgia in Star Wars as an MMORPG. I personally plan to invest a reasonable amount of money in Electronic Arts because I think that people are overly pessimistic about the risks associated with this game. Star Wars Galaxies was so poorly done and I think this soured people's expectations for the success of The Old Republic.

This could be the thing that really brings Electronic Arts into profitability again. They are obviously attempting to get a piece of that MMORPG pie that Activision-Blizzard has been munching on for the last 8 years.

Eve online is a really cool game but its story and world are completely unfamiliar to the general public. The general public has a low tolerance for science fiction that they are not familiar with. And Eve tends to target older people too.

Star Wars: The Old Republic will be different. I think it will have widespread appeal.

Everyone makes mistakes when it comes to investing though, so please consider your own opinions and options very carefully before you choose to take the same calculated risk that I plan to. Never invest money speculatively that you can't afford to lose completely or take a significant loss in.

Let me know what you think will happen. Even if you don't plan to invest any money or prefer to be low risk and invest in mutual funds.

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