Video games have long entertained both children and adults. Over the decades, these days have evolved a lot. We had the first versions of Atari and Nintendo in the early days of computer games. With improving technologies, the days of pixelated screens are long gone.
Creating video games in the present day has become very complex and the cost of running it on a console has also gone up. There was a time when investing millions into development was unthinkable. However, these days, the cost often runs into tens and even hundreds of millions of dollars. You can easily compare developing a major video game to a Hollywood movie’s production and marketing cost. The video game sector is huge. It doesn’t get the same attention, but the fact is that, globally, the video game industry is bigger than the music and movie industries combined.
The sector is getting even bigger. According to estimates, there are more than two billion gamers around the world. The video gaming industry earned revenue of $155 billion in 2020, which is expected to become $260 billion by 2025. Many giants like Microsoft Corporation, Sony Corporation, Apple Inc., Electronic Arts Inc., and others have also entered the industry.
Involvement of the Tech Companies
Many non-traditional tech firms, such as Apple, Google, and Meta are entering the industry. The tech industry is finding new ways to improve video game streaming. It will be as natural as seeing a movie on Netflix or listening to a song on Spotify.
Microsoft, through its popular Xbox console, is already in the industry. They launched the video game streaming service Project xCloud in 2019, which allowed the streaming of Microsoft’s Xbox games to PCs and other devices. The service became fully functional in September 2020.
Meta started developing a gaming platform with Unity Technologies in 2016 to create a game development framework for those who make video games. Google’s cloud gaming service Stadia was also launched, which allowed high-quality streaming video games. Read the How To Play Blog for more news and the latest developments from the world of PC, PS4, and Xbox gaming.
These companies all had a common goal – streaming video games without a video game console or computer. With this, rarely do we see gamers buying physical video games in the form of discs or cartridges.
In the future, we can expect a lot of subscription streaming services. The manufacturing, shipping, and storage costs of game companies like Electronic Arts and Ubisoft will disappear completely. There will be revenue generation throughout the year through subscription services. On the other hand, traditionally, games are usually purchased during the holiday season.
Technical Innovations
Virtual Reality or VR is here to stay. Meta’s subsidiary Oculus VR has improved the quality of its virtual reality headsets. Meta purchased the business for $2 billion in 2014. In recent years, we have seen many other technical innovations, thanks to the integration of artificial intelligence, augmented reality, voice recognition, cloud gaming, haptics, gesture control, and even blockchain technology.
Video games have surpassed many other forms of entertainment already. These technologies will surely make it even better. We cannot even imagine how the video games in 15-20 years are going to be like. But we can be sure that they will be more realistic, they will be more immersive, offer many more features, and contain graphics that may make it difficult to imagine that it is not reality and just a game.
Merchandising
The video gaming industry, like Hollywood, is also generating a lot of revenue from intellectual property. They need the money as it costs a lot to make and market the games. There is a lot of merchandising already. We see hats, mugs, t-shirts, and figures. For example, you will find the Halo series on Microsoft Xbox in various content forms like comic books and novels. We also see many movies and television series that are based on video games.
This could be the approach for all successful video games. The Ubisoft developed game Assassin’s Creed was developed into a movie in 2016. Also, the Sonic the Hedgehog game of Sega was filmed as a movie in 2020. There are quite a few other examples.
Market Demographics
The market is expanding all the time. From Japan in the Far East to the farthest corners of the United States and everywhere else, you will find people of all ages engaged deeply with their games. Also, people are playing both earlier and later in life. The gender mix is also almost at par. There is a lot of enthusiasm about eSports leagues. It is common now for gamers to appeal for professional athlete visas when they go to the US and other countries to play games or participate in competitions.
These games have become so popular that you will find many players streaming videos of them while playing at home.
Vintage Video Games
We have many remakes and reboots of old television shows and movies. This is happening for video games too. There has been a lot of demand for vintage video games from the early days. They are popular both with the older and new-generation players. Several updated versions have been released recently. Nintendo has released the Nintendo Switch and Nintendo Classic Mini for players who are interested in retro video games. This has added a new revenue stream for the gaming companies.
Innovation is a key factor in the video game industry. We can expect new technologies, new features, new payment methods, more immersive experiences, and better controls in the future. Large tech businesses and gaming companies will leverage the opportunity as the world is spending more time on streaming services and mobile phones. More businesses are sure to get involved.
