I recall thinking about how larger video game industry is growing nowadays. I recall my early experiences with an online gaming community, too. What began as a niche part of the web is now part of almost any form of entertainment—from massive esports events to very immersive single-player experiences.
The History of Video Games
My first glimpse at such a transformation happened when coin machines became console gaming in my living room. I recall many an evening in my living room, in front of my television, gaming with characters with heads and bodies that consisted of blocks. As technology grew, games grew larger and increasingly complex in nature. Today, enormous worlds and virtual reality experiences have become ordinary occurrences.
What hasn’t changed is that the industry will continue to adapt. Developers who adapt quickly to new trends, such as free-to-play games or social gaming options, tend to become most successful at any given point in time. Meanwhile, individual developers explore new and exciting avenues in developing games and narrating them with changing gameplay.
Video Game Industry Growth and Revenue Boom
Experts believe that gaming revenues could soon touch $300 billion in a matter of a few years’ span. With my acquaintance with individual developers, I have witnessed firsthand how distribution via the web can result in massive sales. Stores such as Steam or PlayStation Store allow individual developers to access a worldwide player base in days, not years, for offering sales for their games.
The key factors for increased earnings include:
- Digital Sales & Subscription – Instead of discs, subscription and direct download sales have become increasingly in demand, easier to use, and less costly to deliver.
- Microtransactions & DLC – Microtransactions, discussed and debated, generate a lot of dollars, particularly for free-to-play and mobile games
- Esports & Live Streams – Online gaming took off when streaming platforms such as Twitch allowed everyone to view and contribute towards supporting their preferred players.
- In-Game Advertising – Advertising in games, particularly in mobile games, reaches new gamers at a low price.
Technology Innovations
Technology played a role in creating games, video game industry growth, and I remember when cloud gaming seemed unimaginable—now I can use my tablet to play games and not have a powerful computer.
AI changed everything, and I can say that it is a big part of why it is happening.
The biggest technology shifts are:
- Artificial Intelligence (AI): Apart from enhancing non-player characters, AI aids in developing games and observes how players behave.
- VR & AR: Despite virtual reality not being widespread yet, experiences such as Beat Saber and successful AR games such as Pokémon GO reveal that immersive experiences have a lot of potential.
- Cross-Platform Integration: Consoles, computers, and smartphones become less disparate, and one can play with friends regardless of whatever device one is using.
- Blockchain & NFTs: Despite a lack of agreement regarding it, technology could revolutionize virtual property, allowing one to “own” items in a game.
The rise of mobile gaming
We must remember when smartphones enabled gaming for over a billion humans worldwide. Genshin Impact and Candy Crush, for instance, occupy a significant portion of gaming dollars worldwide. I have acquaintances who use only a smartphone for gaming simply because it accommodates hectic lives.
Developers have a big challenge in getting noticed with many programs, and new games launch each and every single day.
Esports and Live Streams Culture
Competitive gaming is no longer a minor activity but a big spectacle worldwide. League of Legends and Dota 2 esports events have prize pools in the range of tens of millions of dollars. I recently visited my first big esports competition and was blown away at first, thinking I’d entered a big sports competition in a traditional stadium.
What is fueling this new community?
- Massive Sponsorships: Energy drinks, computer gear, and even automobiles sponsor esports.
- Influencer Effect: One single streamer can make a little-known title a big hit overnight.
- Fan Engagement: Live chat and social media like Instagram followers to converse directly with teams and players.
Some Challenges in Front of It
The industry, even with its rapid growth, has a few headaches in its future:
- Burnout in Production: Long working days can tire workers in most studios.
- Pay-to-Win Problems: Unfair payment options can disturb communities.
- Too Many Titles: With so many new titles a year, new studios have difficulty getting noticed.
- Regulation Challenges: In-game items similar to gambling have regulators closely in view worldwide.
The Future
Where will video game industry growth go It’s not easy to say, but I believe AI tools will become widespread, lowering development expenses and cutting down production times.
Smooth virtual spaces will probably merge social media and gaming spaces with additional social spaces. You can prepare yourself from here for the future!
Some Trends to Monitor
Here are a few trends worth noting:
- Automated Content Production: Intelligent algorithms can generate full quests and worlds in a matter of a matter of seconds.
- Accessible Gameplay: Including disabled players in games is becoming increasingly important and will soon become a norm.
- Green Practices: As concern for the planet expands, studios will opt for green technology and approaches.
The video gaming sector is developing at a rapid pace with new technology, new concepts, and new entrants entering in. There are blockbuster titles from big companies and small ones, and gaming continues to surprise with its capabilities.
I’m looking forward to seeing what will become video game industry growth in ten years, when developers will discover new avenues for humor, creating works of art, and new communities. One key fact is that gaming isn’t for leisure any longer; it is an integral part of life nowadays. And we have hardly begun.