Gaming Industry Growth
People’s interaction with video games goes way back. The primary prototype models of the games were developed in the 1960s. Superficial gaming extensions were available to play on gigantic-sized computers. In the first-ever game, Pong became a massive hit. Since then, the creation of games has never stopped. The world saw prominent growth in the gaming industry in the 1980s. The result was the invention of interactive Gaming Consoles. The last decade has seen the gaming industry blossom like never before.
Today, games are part of almost everyone’s life. They are entertaining, refreshing, and enhance the brain’s capabilities. A 2020 survey estimates that the gaming industry is worth close to $159 billion worldwide.
Reasons why the gaming industry is flourishing today
- Anyone can play games. There are no restrictions based on age. Today’s adults enjoy playing video games to reminisce about their childhoods spending time on complex screens and PCs.
- There was once a time when creating a single game would cost millions! However, today the gaming industry is earning billions and is one of the most profitable industries. The notion of creating video games based on Hollywood movies is another contributing factor in the industry.
- Mega companies like Google, Microsoft, Meta, and Apple are planning to enter the gaming industry and are planning to rule it. Revenue structure will soar to the skies as a result. As part of their goals, players will be able to play video games without PCs and gaming consoles.
- The most favored system today is buying subscription-based services. Allowing people to purchase subscription-based streaming services has become extremely beneficial for companies like Ubisoft and EA. Therefore, it eliminates manufacturing and shipping charges that were required for handheld devices. The subscription model is an affordable alternative for many and they purchase them throughout the year.
- Technical Innovations in the gaming sector are ever-increasing. Tech giants are constantly inventing superb tech that people are drawn to. For example, Virtual Reality. We have witnessed the massive popularity of Sony’s PS VR and Meta’s Oculus VR. Companies are working on creating more features for upcoming models. VRs will be another layer of flourishing for the gaming industry.
- Merchandising video games through successful Hollywood movies has been a forever hit model. The companies will target their games based on the new Avengers movie when it comes out. This approach is widely adopted and successful. For example, Sony’s PS5 features the Spiderman: Miles Morales movie, which is loved by audiences and is critically acclaimed. The criteria can go another way around as well. Games can inspire filmmakers to create a movie. Ubisoft’s famous video game Assasin’s Creed was later created into a movie with a similar title.
- To eliminate the age factor preventing people from playing video games, companies are rebooting the games from decades ago. It makes people nostalgic and convinces them to play video games.
Estimated total console sales by the manufacturer (1970-2020)
In summary, technological advancement, activation of emotional sentiments, merchandising of games for Hollywood movies, and subscription-based services have all contributed to the increased revenue of the gaming industry.
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