The gaming industry is booming. Nobody could have imagined what the gaming industry would blossom into when they grabbed their favorite snack and played a few rounds of Centipede on their living room TV box. However, simple games like these have led to a tech revolution in which has flourished into todays’ gaming industry and cultural phenomenon (Builtin). Worth over $200 billion, today’s gaming industry is constantly pushing the boundaries of entertainment, technology, and e-commerce, but the rise of the gaming industry is just getting started.
In the past, video games have utilized a variety of console sales and have received boosts from the latest versions of those consoles, for example, Microsoft’s Xbox, Sony’s PlayStation, and Nintendo. However, expedited by the Covid-19 pandemic, videogame’s revenue has now surpassed those of the entertainment’s bigger moneymakers like global films and North American sports combined. By 2025, the gaming industry is expected to become an even larger behemoth, holding a worth of about $300 billion and growing. With the application of subscriptions, free-to-play, e-sports, mobile games, and streaming platforms, gamers are now offered a whole community and marketplace; this attraction has grabbed the attention of some of the world’s biggest technology companies. Google, Amazon, and other tech titans are all taking action to enter the space, and these advancements could lead to even more niches and disruptions for gamers to enjoy (Witkowski, Wallace).
However, these extended boundaries and upcoming growth will provide much more than just game variety. While almost a decade ago virtual reality was a mere curiosity, gaming-centered technologies are now making waves within many industries. Virtual reality has been used to create a powerful impact in fostering more immersive education, health, and can even be a tool to detect subtle signs of child abuse (Engelmann, Nikolayi). As technology advances, there are predictions that virtual reality could enhance the possibilities of asynchronous gaming and virtual commerce interactions. E-sports is another game-changer for millions of fans. It is projected to grow to over 46 million viewers by 2023, and all-star athletes, whether in the court or on virtual arenas, are nurturing mammoth amounts of communities and followings to take advantage of brand deals on stream (Builtin). In addition to these innovations, digital assets are also a motivator for the gaming industry’s growth as blockchain technology and economic game engines may bring virtual purchases to life.
Although video games started from humble beginnings, there is no question that the gaming industry is ripe for start-ups and continued innovation. Investors, although usually hesitant to enter such an uncertain and lucrative industry, have a great advantage to place their bets in this new gaming era. While there is a slight increase in investor participation, commonly specialized venture funds, generalist capital funds are now given the opportunity to reap the incoming potential. The traditional gaming value chain where titles were produced and supplied and gaming developers and publishers were the most dominant players is shifting to an expanded audience. Games are no longer consumed by gamers alone but also spectators, e-sport fans, and marketing and advertising that drives the monetization and the industry’s new revolutionized value chain. Nothing is off-limits in this industry, for example, the current trend of virtual concerts such as Travis Scott’s Fortnite performance in which attracted over 12.3 million participants. It is now more than ever that investors need to keep their eye on promising opportunities in the gaming industry (Co, Allison).
Author: Savannah Davis