People are often curious about how is the gaming industry growing. Video games have evolved from Atari and Nintendo with a few dots and lines on pixelated screens. More lifelike than ever, technological advances are making games more realistic.
From realistic combat games to Vegas-style slots, the online gaming industry is taking a more serious tone. With users able to dive into life-like experiences, video games are more complex as developers spend millions on today’s games.
Below we will explore why the gaming industry is increasing and a few big wins in technology, hardware, streaming, and online gambling.
How is the Gaming Industry Evolving
The video game industry’s growth since 2000 has been steady. Gaming industry companies are moving into Hollywood-style development, and despite being a new scope, the sector includes music and movie industries, tech innovations, and expanding markets. The video game industry has about 2 billion players worldwide, or 26% of the population.
To video game industry statistics, Google, Apple, and Facebook have interests in this lucrative market which brought in $155 billion (total revenue) in 2020. Some estimates suggest that by 2025, revenue will reach $260 billion. Roblox, another gaming company, had a whopping $74.88 billion market cap in 2021.
Tech Demand and Streaming Services
The question is often asked why innovation is important in the gaming industry?
An enhancement to user experiences, players want more realistic games, better sound quality, and top-tier action. Take video streaming. Users are now streaming games online, similar to watching movies on Netflix.
In one example, Microsoft, which has Xbox consoles, introduced a streaming series Project xCloud, that lets players stream games on a PC or other device through Game Pass.
Another example is Facebook’s Unity Technologies which lets developers create video games. Google’s Stadia is a cloud gaming service that allows players to stream games across devices without a console. Hence, gaming cartridges are becoming obsolete.
With the uptick in subscription streaming services, shipping, storage costs, and manufacturing are decreasing while year-round sales increase. When physical cartridges were in demand, sales spikes only occurred over the holidays.
VR and Other Innovations
While Apple has a VR headset, Meta’s subsidiary Oculus VR is a headset that the company purchased for $2 billion in 2014. With other popular products like the Oculus Quest 2, virtual reality is another way gaming has more realistic experiences.
Video games are becoming ubiquitous forms of entertainment because players can have fully immersive experiences beyond a joystick and basic sound. Users can optimize gameplay with enhanced controls, touchscreens, and voice options.
An example is a Vegas-like casino where players can sit in on a poker tournament, speak to the hosts and dealers, and connect with other real-life players. Another example is a virtual gaming operator where users can play online fish shooting games for real money.
Video game merchandise is also paying off. More video gaming companies are securing intellectual property rights to brand merchandise for players and fans (who watch eSports tournaments).
Merchandise can include hats, t-shirts, mugs, and action figures. For example, some players enjoy Xbox’s Halo series through comics, novels, movies, and TV shows.
In another example, Ubisoft’s Assassin’s Creed game became a 2016 movie. Sega’s Sonic the Hedgehog had two movies and a TV series with a-list actors.
Changing Market Demographics
A change is that younger and older generations are online more. Top-tier gamers are millennials competing in eSports leagues, with record demand in India, the UK, and other countries.
Older generations are enjoying their favorite table games (poker, blackjack) and slots from the comforts of home. Hence video game demand continues to expand.
A lucrative side-venture to make money playing video games is streaming gameplay for others (worth hundreds of thousands of dollars). Hence, revenue streams are available to developers and players alike.
Historic Video Games
With so many games accessible in streaming services, developers are making vintage games available to older generations. Early adopters started with hits like Donkey Kong, Frogger, Galaga, Super Mario Brothers, and Pacman.
Gaming businesses like Nintendo are releasing updates of favorite nostalgic games and older consoles. Their retro video games are available on Switch and the Classic Mini consoles.
The Bottom Line
Video games are leading the entertainment industry and continue to innovate. With streaming services across mobile, users have more freedom and less cumbersome console hardware. VR headsets and better controls are also allowing for immersive experiences.
With more users on mobile devices, tech companies are looking for ways to leverage these revenue streams. To meet demand, expect better games and hardware, more M&A deals, and brand merchandise. With more players enjoying streaming content in the US and eSports overseas, video games are here to stay. Game on!