We are going through an unparalleled moment in the history of the gaming business. Following an unprecedented period of growth in 2020, analysts expected that the market would be unable to continue growing at the same level in 2021.
The market was predicted to enter a period of decline as a consequence of supply constraints and AAA titles being postponed due to the pandemic. In fact, some analysts projected a little drop in sales, but consumer spending on gaming has shown to be resilient to the COVID-19 pandemic’s longer-term effects, and the gaming industry produced gross profits of more than $180 billion in 2021, up 1.4 percent from 2020.
Market analysts predicted that the sector would be unable to match the figures recorded in 2020. However, the market has shown that it can expand again, demonstrating that gaming is no longer the seasonal, hit-driven industry it once was. New gaming content doesn’t have to imply new games or new gear; a new season pass or a new platform may increase revenue just as well.
Microsoft and Sony’s recent acquisitions of Activision and Bungie, two companies with some of the most popular subscription-based games in the world, are an excellent example of this increased focus on subscription-based games and season passes.
The pandemic, on the other hand, also had a significant influence on audiences on streaming platforms during the last two years, not only video game sales. Twitch’s average concurrent viewership climbed considerably between 2020 and 2021, and TikTok is said to be testing a new desktop streaming platform to compete with Twitch.
Although future development is not expected to be as substantial, research company Newzoo predicts that gaming revenues will reach an amazing $219 billion by 2024, establishing the gaming business as one of the primary sectors within the entertainment industry, exceeding even the film and music industries.
Gaming trends on the rise
The gaming business is rapidly developing. However, hardware supply chain concerns persist, making consoles and PC gear inaccessible in some regions. Gamers have been badly harmed, but gaming companies are attempting to strike a compromise between exclusivity in smaller regions and catering to last-gen technology, which significantly slows development progress.
Not only has technology been impacted, but so has the whole nature of gaming. Xbox Game Pass, branded the “Netflix of gaming,” changes how people access video games. The increased popularity of gaming broadcasting has given rise to a new trend known as “game watching,” with Twitch viewership reaching a whopping 2.9 million concurrent viewers by 2022.
The iGaming industry is also going through major improvements, and what was once seen as a shady business is now attracting millions of players all over the world. The introduction of new technologies such as streaming and virtual reality, as well as the enhancement of security features and the regulation of iGaming markets has enabled players to appreciate unique experiences, including real-time gaming and in-play betting.
In addition, the advent of blockchain gaming, cryptocurrencies, and non-fungible tokens is expected to have a significant impact in 2022, as slow sales of popular AAA titles force developers and publishers to seek new sources of revenue and monetization. Even major gaming companies like Square Enix have declared their support for the use of blockchain technologies in gaming.
Mobile gaming to set new records
According to the latest market research statistics from Newzoo, the mobile gaming industry is on course to reach $100 billion in revenue this year.
Mobile gaming already accounted for over 50 percent of all game spending globally, and this new data predicts that it will continue to dominate the market. According to Newzoo, the mobile gaming category, which includes both smartphone and tablet gaming, is expected to expand by 5 percent this year to $103.5 billion.
The research did indicate that mobile gaming’s market share of worldwide revenue is likely to decrease from 52 percent to 51 percent, as growth on mobile has moderated after the early pandemic’s spike in spending and engagement, while console and PC gaming has begun to expand again.According to the estimate, the United States will exceed China in gaming earnings for the first time in 2022, owing to the Chinese government’s increased oversight and regulations. The US is expected to account for $50.5 billion, while China will account for $50.2 billion. Combined, the two markets account for almost 50 percent of all global expenditure.