The video game industry is booming, with its net worth estimated to be around $170 billion globally. The incredible thing about that statistic is that number is not expected to decline anytime soon. This has led to numerous advancements in the field of gaming from new methods of interacting with games to entirely new ways of accessing games themselves.
Here are 10 elements driving growth in the gaming industry:
Changing business and distribution models
The implementation of games digitally and new content distribution platforms lowers the need for physical sales which creates a demand for increased hardware demands and faster internet speeds including the rise of 5G means that gaming applications can be accessed from anywhere, again lowering the reliance on physical game discs.
Explosive mobile growth
Mobile gaming has experienced a lot of popularity in the past few years due to advancements in mobile technology. This includes better hardware that supports high graphical capabilities as well as online streaming. This makes it possible to even stream 4K games on mobile and more and more AAA titles are being released on mobile.
Deeper measurement of LTV
Lifetime Value is the average expected profit margin a developer can expect to earn for the duration a user plays the game. Due to the interconnected nature of gaming platforms; browsing, playing and purchasing games allow developers to create a detailed segmentation of gamers, their behavior and the value that they create.
Always-on revenue models
As gamers now have the ability to download or stream games from anywhere, on any device, the amount of time spent in engaging with games will also increase. The modulation of new gaming content will increase as well. Studios will look to implement DLC led strategies which will allow them to gain insights from the traditional app gaming development approach to extend game development cycles.
Growth of streaming
One of the methods of overcoming the barriers of game streaming and increasing the growth in game streaming overall is to create an experience for the consumer that features more live gaming events and the ability to share deeper and more meaningful gaming experiences on social media. This has created incredible opportunities for streaming and gaming content to be consumed across different platforms like PC, consoles and app IPs.
Rise of social
Social media has contributed greatly in lowering the gap between social experiences and gaming, especially in the case of mobile games. Gamers want to share and experience live gaming events while creating meaningful social gaming experiences with each other. This has led more games to feature social media platforms as a means of sharing game content to increase popularity as well as through matchmaking or connecting accounts to social media platforms.
New audience engagement
Online streaming and other technological advancements have led to the creation of new opportunities to better engage with core audiences and acquire new ones. This has also led to increased player engagement through sponsorship, media rights, merchandising, licensing and online streaming.
LTV based marketing
Lifetime Value and maximizing player engagement with effective and efficient first-party targeting for new content, updates and live ops through closed-loop attribution and measurement will soon become standards as developers push for maximum growth.
Game developers are utilizing data from gamers to determine how to create increased engagement, the average number of sessions, session length and average revenue per user. This helps them identify the elements that are unpopular, which levels cause players most difficulty and what features are most preferred. This allows them to target these areas to increase player engagement and therefore increase their revenue.
Sophisticated revenue streams and marketing strategies
With increased importance on accessibility, user experience and high performance, gamers now have the ability to play games anywhere from any device. Using the internet to stream games as long as it has an internet connection allows developers to leverage the best computing and storage resources to provide the best visual and most powerful gaming experience. This will cause a major change and shift from barriers of console and PC lifecycles.