Over the years, the gaming industry has had a continuous growth trajectory and accelerated since the COVID-19 situation. With more people leaning towards indoor entertainment options and taking up gaming more seriously, the global gaming industry is expected to experience a CAGR of 12% in the next four years.
Game development innovations like virtual reality and a higher level of internet penetration have made gaming more enjoyable and convenient. Further developments in technologies like blockchain eased asset exchanges within games.
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Market Share For Console Games, Mobile Games, And PC Games.
The gaming market itself is getting more competitive. The demand for online games and mobile games has increased rapidly across the US, the UK, China, Italy, and more.
Key game development companies like Sony, Microsoft, and Nintendo are keen on developing advanced gaming innovations, next-gen consoles, and more to keep their audience hooked on their games.
But it is the mobile gaming market that leads above all, contributing to about 50% of the global games market. The overall value of the mobile gaming industry was estimated to be over $70.3 billion in the year 2018. The same report from Newzoo gives the market share of:
- Video game console to be around 25% with a valuation of $34.6 billion and
- Boxed/ downloadable PC games to be at 21% with a valuation of $28.6 billion.
- Browser PC games at 3% with a valuation of $4.3 billion
The rest of the gaming market is saturated with a large percentage of mobile-accessible games with their market share summarised below:
- Smartphone games – 41% with a valuation of $56.4 billion
- Tablet games – 29% with a valuation of $13.9 billion.
NewZoo reports that by 2023 the gaming market will exceed $200 billion, and the current estimate of 2.7 billion gamers would have grown at an incredible rate.
Most gamers tend to think of gaming as a way to find relaxation from their routine life. The introduction of exciting new features and higher engagement levels has also driven more people to get into casual gaming.
As mobile gaming presents a more convenient and cheaper way of entry, it continues to experience the highest level of followings and user engagement. That is the reason that more companies want to hire game developers.
Meanwhile, console gaming, despite its comparatively slow year-on-year growth, is raking up loyal customers and establishing a consumer base. Some challenges like physical distribution, cross-company collaboration, and certification will help the console gaming industry grow even faster if dealt with more efficiently.
How COVID-19 Impacted Gaming Trends
COVID-19 has caused a boom in the game development industry, especially in multiplayer games. As physical communication and socialization dropped following the lockdown measures to curb the pandemic, many people have found gaming an excellent way to connect with other gamers.
Several remote collaboration platforms like Zoom and virtual meeting apps have also launched gamification features to drive user engagement.
Habbo combines gaming and interactive modes to conduct more engaging video conferences and parties that people like immensely.
The surge in gaming interest has also transformed the entertainment industry as gamers like to experience better visuals and audio when playing their games. The growth of gaming differs from that of the music or film industries. While people do tend to enjoy all of these services from their home, music shows, and the theatre experience still present as a way for socialization; however it starts to be replaced by a virtual experience gaming provides.
Gaming can combine the essence of movie experiences with attractive graphics and music that give a better engagement.
Technology Trends For Gaming Industry
Do you remember the time traffic signs had to be put up following the Pokemon Go app’s viral popularity? Pokemon Go grabbed the world’s attention with its groundbreaking AR technology that provided a whole new level of gaming experience to players. More gaming app development projects with AR-enabled features such as Location-based AR and Marker-based AR are expected to open doors to huge marketing and sales opportunities.
AR is increasingly deployed in the retail industry by programmers as part of gamification. Other sectors like education, entertainment, tourism, and real estate also use AR features to help users visualize concepts and images in a real-world setting.
Internet of Sense and Thought Control
Another promising upcoming trend in the gaming industry is the tech that ought to bring science fiction into reality. Thought Control and the Internet of Senses are evolving technologies that allow users to control apps and machines via brain waves.
Some existing applications using this technology include EEG headsets. EEG headsets pick up brainwaves to interact with a machine system and virtual reality applications that provide an immersive experience to the user. For example, EMOTIV’s devices with Mental Control algorithms can be assigned to control virtual or real objects just by the thought.
Cloud gaming is emerging as a priority trend allowing players to experience powerful gaming without any hardware dependencies. The primary reason console gaming has a lesser user population is the expensive hardware involved. To provide the same gaming experience that a console can give over the Internet, there should be high network bandwidth and processing power.
These mobile game development limitations are slowly disappearing with the launch of 5G networks and powerful cloud gaming platforms like Google Stadia, Playstation Now, and PlayKey. Gamers are not restricted by the computing power or memory limitations on their devices anymore.
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The VR space is continuously evolving, with many VR hardware becoming cheaper by the day, allowing more users to experience a fantasy with realistic sensations. Some popular VR games like Beat Saber, Far Point, Budget Cuts, Half-Life Alyz, and Minecraft VR are steadily growing their user bases.
Video Game Streaming
Video game streaming is growing as a supportive industry, with several casual and professional gamers taking up personal blogging and real-time streams to engage with the community. Platforms like Twitch and Periscope have enabled a whole new online networking genre reliant on the gaming community and video game developers. The conversations and content generated like reviews, streaming multiplayer battles, game videos, and more on these platforms are also influencing user behavior.
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Face And Voice Recognition
Speech technology and face recognition systems are used as a way to authenticate gaming controls. Games like Mass Effect 3, Oculus Rift, Never Mind, and more have implemented speech-controlled actions that have been welcomed warmly by gamers across the world.
Facial recognition is also used to create personalized avatars and reflect the gamer’s expressions when playing a multiplayer scenario.