5 Companies Driving the $81B Video Game Industry of 2016

The video game industry including sales of machines like Microsoft s (NASDAQ:
MSFT ) Xbox 360, games sold at retail like Call of Duty , and digital games like
Rovios ubiquitous Angry Birds pulled in $66 billion in 2010. Market research
group DFC Intelligence sees significant growth coming over the next five years,
according to a Wednesday report in Venture Beat . By 2016, the game industry
will rake in $81 billion in sales . As the report notes, however, the slow
changes that have marked the business between 2008 and today namely the growing
importance of purely digital sales through online storefronts and services will
become standardized by 2016. Physical retail will be the minority and digital
distribution will be the norm. Even now, companies like GameStop (NYSE: GME )
are doing everything they can to transform themselves into predominantly digital
businesses . The question now is: Which publicly traded companies are well
positioned to still be players in the all-digital world of 2016? Here are five.
Apple Naturally. Apple s (NASDAQ: AAPL ) iPhone, iPad and iPod Touch, as well as
the App Store, didnt start the digital business revolution. But their role in
realigning consumer expectations of game pricing (99 cents instead of $50) and
availability (a flick of the button instead of a purchase at the mall) cannot be
overstated. Apples devices have created the template for video game retail in
2016, and with analysts projecting even greater sales of the companys iPad and
iPhone over the next few years, theres a good chance Apple will remain a player
in five years. Electronic Arts While Electronic Arts (NASDAQ: ERTS ) certainly
isnt worth what it was a few years back, its stock is no slouch. As of July, EA
was trading at prices not seen since October 2008, and its outlook thanks to
anticipated products like Star Wars: The Old Republic is promising. Beyond the
short term, though, EA has done a great deal to future-proof itself, investing
heavily in digital distribution initiatives. The company has worked hard to
bring its potent sports brands, like Madden NFL, to social networks like
Facebook . It also has made key acquisitions like mobile and social game
superstars PopCap . The company also opened Origin, an iTunes-style digital
storefront and online community for its games, earlier this year in an attempt
to control the digital distribution of its strongest brands.