The gaming industry is one of the biggest and fast-growing industries globally, with an estimated value of $170 billion. Why is that?
The reasons are simple. Many games are free to play, and with commercialization, gaming has become an income avenue. Since the pandemic, the growth has been immense for digital sales of games, live streaming, and cloud gaming platforms.
Over half of the UK adult population played games last year, which shows that gaming has become far more mainstream than previously thought. The following are the top trends that are driving the growth of the video gaming industry globally.
Business models and distribution models are changing
The shift to digital-only games and new content distribution has led to a decline in physical copy sales. Faster download speeds, including 5G, have reduced the reliance on gaming discs, even for highly engaging and time-consuming games.
Growth in mobile usage and better connectivity
Mobile device capacity, faster Wi-Fi and internet, and more reliable mobile networks have contributed to people consuming more digital content. Games are generally downloaded to mobile devices.
In a world connected to the Internet, gamers can interact with others worldwide while the games are still being played locally. Whereas in cloud gaming and streaming, the games run on users’ devices, but they are stored elsewhere, for example, in data centers
Gamification as a social forum
As a result of the COVID-19 lockdown measures, the use of games for socializing has increased dramatically. Players can socialize and experience a live event through virtual spaces in games with large player bases. Immersive multiplayer services will continue to grow in popularity.
Video games and music have forged a successful relationship thanks to virtual concerts having viewership numbers in the tens of millions. It’s only a matter of time until we see more game developers taking advantage of this space.
Evolving revenue model
As mentioned, along with the changing revenue models, game mechanics are also evolving. With the adoption of microtransactions across multiple franchises across all platforms, revenue models, such as the free-to-play model, are gaining traction.
In response to consumer behavior changes and the acceptance of recurring revenue models, AAA Console and PC are adapting to drive maximum value.
It’s beneficial for businesses to reach the right audiences. Marketers need to understand what gamer behavior indicators are being measured and use that information in their marketing efforts.
Diverse market
It’s a myth that gamers are exclusively young males. Gamify reports that 17% of men and 10% of women in the United States, aged 18-35, play video games. As cloud gaming and other trends, like online poker or casino slots, gain popularity, the video game market continues to grow. Perhaps, low-income earners can still enjoy gaming without spending a lot of money on high-end gaming machines.
Future generation of consoles
Mobile game users, digital distribution models, and cloud gaming have helped bring gaming to many new audiences. As a result, the major gaming console makers have introduced next-generation consoles that allow players to play physical and digital games.
As next-generation consoles adopt state-of-the-art graphics, lightning-fast load times, and easy access to new games, the video game industry continues to expand.
Benefit for players and developers
Since cloud streaming eliminates some player challenges, such as purchasing games, upgrading hardware, and upgrading platforms every few years, it brings massive scale and technology benefits. Scaling up the supporting infrastructure and delivering content on different devices will open new possibilities for player reach and base.
Game-streaming services enable players to instantly play a vast library of games without having to download them locally, install updates, or manage their file sizes. As a result, subscription models can be offered directly to consumers or via cloud gaming platforms.
Bottom line
The video gaming industry will prosper and flourish without a doubt. The potential is immense, and the market continues to grow. It’s just a matter of time before marketers cash in this booming industry.
