When considering gifts for the holiday season, particularly for younger individuals, video games and consoles frequently top wish lists. This trend typically boosts gaming companies and retailers like GameStop Corporation. However, the question arises: which gift would have offered a superior financial return over the festive period: a video game or an investment in GameStop stock?
GameStop has gained significant public attention, not only as a leading destination for gaming products but also as a 'meme stock' following a notable short squeeze in 2021. While the immediate satisfaction of unwrapping a new video game on Christmas Day is undeniable, the long-term value of such a gift often diminishes rapidly. Video games tend to lose value over time due to new releases, sequels, and advancements in console technology, rendering older titles less desirable and valuable. In contrast, an investment in company stock, though perhaps less exciting for a child, carries the potential for capital appreciation over time.
Analyzing the past six Christmas seasons, the article compares the hypothetical scenario of spending $69.99 on a video game versus investing the same amount in GameStop stock. For last Christmas, an investment in GameStop shares would have resulted in a decline, whereas for several prior years, specifically 2019, 2020, 2022, and 2023, the stock investment would have yielded substantial gains, far outperforming the depreciated value of a video game. Despite fluctuations and a year-to-date decline in 2025, the aggregate investment in GameStop stock over these six Christmases demonstrated a significantly higher return compared to purchasing video games.
Ultimately, this comparison highlights a crucial financial lesson: while immediate gratification from consumer goods fades, strategic investments, even in volatile assets, can offer considerable long-term growth. It encourages a forward-thinking perspective on gift-giving, suggesting that empowering recipients with financial assets can be a more impactful and enduring present than transient material possessions, fostering an understanding of future potential and wealth creation.