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

• The study examines the performance of items from the popular game Counter-Strike. • Between 2015 and 2025, the returns of skins are higher than equity returns. • Volatility is also higher, resulting in roughly similar Sharpe ratios after fees. • Cases, which are similar to call options, delivered high risk-adjusted returns. • The long-term future of the skin economy created around the game is uncertain. 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 3,000 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.