Why Is The Gaming Industry Developing So Fast?
The video gaming industry is one of the fasters growing industry currently, and it is nothing new.
For more than a couple of decades, we have been entertained by various gaming products, but the world is hungry for more. The world witnessed this technological evolution from Atari to PS5 and from arcade games to lifelike games such as The Witcher 3.
Nowadays, there are almost 2.5 billion video game players around the globe, and the number is constantly growing. People love playing games as much as they love to gamble. Some even say that this industry’s revenue will reach $300 billion in the next five years or so.
The Essence of the Gaming Industry
Apart from the apparent economic growth and spreading, gaming is one of the most innovative industries. With the emerging of in numerous technology advancements over the past few decades, this industry, as well as the casino industry, couldn’t stagnate. The technology used for gaming is evolving, new revenue sources are incorporated and everything is becoming more complex.
Everything has become instant and accessible, and the days of buying video games on discs and cartridges are long gone – which you are probably aware of if you are into gaming. Now, the players can press a button on their phones and download games and apps like casinos. Speaking of casinos, Casinosters created a list of low deposit casinos you can access. With the abundance of information sources such as forums, Youtube, and other streaming platforms such as Twitch, video gaming got a completely new form.
With Bigger Power Comes Bigger Responsibility
As the industry is earning billions and the popularity is skyrocketing, some other changes are on the verge. Game development and creation have become more complex, which started the shift in various fields. More professionals working, more technology, more hours of work mean more investment.
Creating video games for various consoles and platforms became more expensive and demanding. It even entered the Hollywood movie zone when it comes to marketing and production expenses. Speaking of Hollywood, the video game sector is currently larger than music and movie sectors combined. And, funding is one of the most important parts of any industry, especially the ones developing so fast. Gaming companies used to generate revenue from selling games, but this wasn’t going to cut it. With a market shift there the point of view also needed to shift. Today, revenue comes from various other sources.
Take a look at some of the ways this industry generates revenue:
Who would say that free to play games gather the biggest portion of revenue? Sound illogical, but it is true. The latest industry trend of launching free-to-play games such as LoL, Dota 2, Fortnite and PUBG has proven to be more than lucrative. Hundreds of millions of players play for free, and the demand for in-game items keeps growing.
In-game purchases have become a standard in the industry and one of the main revenue sources. Gamers can deposit funds and buy a range of virtual in-game items such as gear, weapons, outfits, skins, mystery boxes with real money. believe it or not, this model brings billions of dollars in revenue on an annual basis. Even if 2020 was marked by COVID-19 pandemic, Fortnite’s revenue for 2020 is forecast to go over $5 billion.
Streaming and Tech Giants
The biggest tech companies in the world such as Google, Facebook and Apple want to get a share, too. After all, the rise in revenue per year is measured in billions of US dollars. These giants want to enter the video game industry by launching several streaming services. The main goal is to make streaming video games accessible and simplified.
Streaming has turned out to be quite profitable, and it is no wonder that is entering the radar of big companies. MSFT or Microsft is already a part of this field with its Xbox console, but they are planning to launch Project xCloud for streaming, as well. It would allow users to stream Xbox games to computers and other devices. Similarly, Facebook is developing a gaming platform with Unity Technologies, and Google is launching Stadia, a cloud gaming service.
It seems that the consoles and computers are not the devices of the future, since the technology is developing in a completely different direction. This would allow users to stream from their mobile devices. And it is logical why it is beneficial to video game companies – as they will cut the cost for manufacturing, storage and shipping. Moreover, the ability to generate revenue equally throughout a year sounds smart.
More Revenue Sources
This industry seems to keep reinventing the revenue sources. Thus, the perfect environment for playing video games had to be VR. Even the IT giants like Facebook are launching products such as Oculus VR. With different entertainment, forms come new trends and more opportunities to earn money.
Investing in merchandising is not a new trick, but the companies like Microsoft and Ubisoft have stepped up the game. Apart from the merch like t-shirts, mugs, figures, and more, these companies started publishing novels, comic books, TV series and even movies. Such is the 2016 Assassin’s Creed movie and Warcraft.
With the mentioned revenue sources, statistics and digits it is no wonder that the video gaming industry is flourishing. Moreover, market demographics have expanded, and more and more young, middle-aged and old people play games on a regular basis. Everything related to it has expanded beyond comprehension, and it seems that it won’t stop growing any time soon.
Judy Nelson is a blogger who used to work in the gaming industry for 7 years. She loves writing about video games, new technologies and the casino industry. Judy’s one true passion is playing massively multiplayer online role-playing game or MMORPGs.