Skin in the game: The returns of digital assets from computer games

Felix Reichenbach

Finance Research Letters, 2025, vol. 83, issue C

Abstract: A large community of traders, gamblers, and investors is involved in trading items from computer games. This study analyzes the risk and return characteristics of portfolios constructed from over 3000 cosmetic items (“skins”) from the most popular game on Steam, Counter-Strike. The results show that rapid player growth and limited supply contributed to exceptionally high historical returns over the last decade. Between 2015 and 2025, diversified portfolios of these items significantly outperformed stocks, achieving an average annual return of up to 66.9 %. However, high transaction fees, high volatility, and uncertain long-term prospects also pose considerable risks to players and investors.

Keywords: Video games; Virtual assets; Virtual items; Diversification; Alternative investments (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 G41 G50 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009298

DOI: 10.1016/j.frl.2025.107670

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