Video Games are Set to Become a $300 Billion Industry
With around 2.5 billion active gamers across the world, the gaming industry is counting profits. The market studies are clearly showing the statistics of it growing into a 300 billion dollar industry by 2025. While the entire world is in a halt and expecting this COVID-19 pandemic to get over by Q2 and get back into business, the gaming industry is at an all time high. The quarantine has made people find some leisure time to play a game or two and the gaming industry is seen booming in this phase. Though at one point of time, the video gaming industry was gaining its revenue by selling games, now the times have changed. There are many other sectors that are directly contributing to the industry. This is the revenue shift and is about to bring about some significant changes in the market.
The Two Major Revenue Perspectives of Gaming Industry
- Free to Play model– In this the players do not pay for playing or downloading any game, the revenue is generated from either advertisements or game expansion downloads, having a special item or a feature etc. The entertainment world is squeezed into its palm of business model and as for SuperData’s Year end report, Free to Play model of business accounts for 88 billion dollars for 2018. At present, this is known to be the most profitable business model, with the constant increase in the demand for games.
- Third party in-game items– Are gaming subscriptions and streaming the new fad of the gaming industry that is changing the scenario or is it a one time thing? Now could be too early to decide on that. But for now, the third party cloud based subscription model of business is the video gaming industry revenue generator. With Google stadia, Apple arcade and Project X-cloud, it can be said that the hardware store is closing for the industry. The fact being, between 2019 and 2025 the cloud gaming market is on fire and is expected to grow at a rate of 42%. It is also said that it ‘s not long before it reaches the US740 million dollar mark.
The impeccable advancement in technology
Innovation and technology have had a serious and practical impact on the booming video game business of today. Against it, there is equivalent to nothing that could be neglected and made a $120 billion market. There has been a constant creative approach to build this video game empire into a giant. From gaming engines to developmental platforms, there is a constant evolution to fulfil the demand of the market. Its features and detailing are elaborated into significant widely popular mediums of conduct.
Even gaming consoles are changing its versions to fit in. Why is that? Ask your televisions. When televisions are becoming smarter, it is time for the gaming consoles to mark their way through, and rather efficiently. A few additions in the last few years have completely changed how people perceive gaming. What are those? Let’s find out the innovation which blended smoothly with gaming.
- Augmented Reality or AR– Change doesn’t need to mean scraping off the past to begin something new. They both can go hand in hand and create a new one along with the existing. AR did exactly the same. It didn’t replace traditional video games, It just added to it. AR infused video games provide audio and visual representation in real time. It overlaps imageries over reality and creates a virtual world based on the artificants of the environment. Though AR is now used in many other fields, it is most popular in the video game business and this has been familiarised to you. Games like Pokemon GO, Harry Potter: Wizards Unite, Brickscape, Ingress are the widely played ones. If you want to know the future for AR, take a look at the blog stating the trends that would follow.
- Virtual Reality or VR– Unlike AR, development of Virtual reality games sets the video game industry in all top of the entertainment. It is a first person perspective of gaming that is highly immersive in nature. Also, it requires a little more gearing up than AR that just requires a screen to look into. Sensor gloves, VR headsets, controllers etc are needed to experience the true meaning of VR gaming. If not for these, you can still play VR implemented games in powerful PCs. Even with some limitations like spatial and accessories, Virtual Reality in games is flourishing.
- Voice Control– The use of speech technology in gaming was a brilliant idea till it became complex. Even then it stands as a potential possibility that would change how people play games. Imagine a more immersive experience with voice controlled characters. It is meant to enhance user experience and bring the virtual world a little closer to be heard. For now, it is just in the initial stage of experiment and development. Some gaming enthusiasts are expecting a more simpler yet effective form of voice controlling featured into their favourite games.
- Motion Control– Looking at the bright side, Motion control gaming is the future. Much like the PS4 Pro version of the playstation that is best to play motion control games with. The world where motion control and VR comes together, is the place that the industry is looking for. A smooth interface of gaming, through body movements. This feature is activated by clear commands, gestures and real-world actions and needs some time to fully gain acknowledgement in other gaming consoles.
- Live streaming– As bizarre as it sounds, live-streaming of games is the new thing in the world of gaming. Recording ones online play and streaming it online on Twitch, Youtube, Facebook is one way that is trending since 2010. Professional Players watch others play to learn strategy, tricks or just for entertainment. This has also turned into a hobby for a few. It is also a good source of revenue if your viewers are ready to pay in order to watch some powerpact games.
Making billion bucks for the industry
These are the recent advances in the gaming industry that are taking it by storm. Both in terms of revenue and innovation. With the big sharks like Microsoft, Sony and Google entering the subscription and streaming alternatives, it is not far when the major part of the video game industry review will be generated from these accounts. According to Ed Thomas, the GlobalData’s principal analyst for the popular Technology Thematic Research, “Today’s video games industry is in the throes of a huge transformation from a product-oriented business to an as-a-service model,” Thomas said. “At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation, while new business models like support for in-game micropayments are already changing the economics of gaming.” and also added “Major games companies are racing to become the Netflix of games, driven by rapidly increasing viewership on existing streaming channels. However, latency and bandwidth limitations will serve as a brake on the development of mobile gaming services. The maturing of cloud technologies and development of 5G will reduce these network issues, creating an increasingly competitive market in which several leaders have already emerged.”
This clearly indicates where the video game industry is heading to and what is to be expected. Juego Studio is one of the most prominent video development companies and its constant attempts in bringing out innovation in video as well as mobile games is an initiative to make the picture prominent of how development is sticking by its words to provide unique actions. We entered the game design industry with a promise to create something new and exciting and now have come a long way. We are also trying and contributing our bit to build what is expected, to make the gaming industry significant.