From the very beginning, this industry has diversified and reached multi-billion dollar value, constantly keeping up with the development of modern technologies.
Since the COVID pandemic, the gaming space has seen a paradigm shift, with the arrival of many consumers and greater revenues.
According to StockApps, global gaming revenue is expected to exceed $300 billion by 2026. Total revenue is projected to increase 8.4% from $214.2 billion in 2021 to $321.1 billion in 2026 (all amounts in US dollars).
Openness to other technologies
The site’s financial analyst Edith Reads comments, “The projected growth demonstrates the solid foundation of video games in the economy.” Games are now paving the way for metaverse and other technological advances. Expected growth will certainly attract more investors to the sector, which could increase employment opportunities and open the doors to higher returns in the future.”
Madden NFL 23 EA video game
On the way to great success in the coming years
The rapid development of technologies is a decisive factor for the success of games. Nowadays, most game developers focus on new technological advances like virtual reality, cloud infrastructure and blockchain technology. So far, these advances have largely attracted more consumers and investors.
A good example is web3 games, which experts say will reach nearly $1 billion in revenue by 2025 with over 100 million players. Emerging cloud platforms like Xbox Cloud Gaming and Google Stadia are also sure to attract more consumers.
File: The Most Anticipated Video Games of 2023. Pictured: Diablo IV. Photo courtesy of Blizzard Entertainment. Photo courtesy of Blizzard Entertainment
The new and powerful mobile games industry
Gaming is no longer tied to traditional devices or gaming stations. Cell phones are the new deal. They are easier to use, more convenient and more accessible, making them the ideal gaming platform. By 2026, mobile gaming is expected to bring in $242.7 billion, compared to $321 billion in gaming revenue. The growing popularity of mobile games is bringing more revenue to the industry.
Game developers are finding new ways to increase gaming revenue. So far, they have managed to make money through in-game advertising, paid premium plans, and microtransactions. About 85% of gaming revenue comes from F2P (free to play) games that use some of these strategies, notably ads and in-app purchases. As the industry continues to grow, new revenue generation opportunities are opening up, resulting in higher sales volumes.
Feature: The Most Anticipated Video Games of 2023. Pictured: The Legend of Zelda: Tears of the Kingdom. Photo credit: Photo courtesy of Nintendo. Photo courtesy of Nintendo
On the negative points: dependency
However, the mass adoption of games also brings some setbacks, such as the rise in game consumption, which can lead to gambling addiction, especially among young people, and cause other problems such as social isolation and mental and physical disorders.
However, the gaming industry is growing rapidly and offers many opportunities. The projected growth only goes to show that gaming is becoming an increasingly important part of our lives and will continue to be among the most profitable industries in the world.
The Fortnite game. Image courtesy of Epic Games