The gaming industry continues to record phenomenal growth. What are the current trends and what do we expect in the future?
Gaming and betting industries have recorded tremendous growth in the recent past. The two industries are being shaped by emerging trends. Gaming has seen the emergence of new games that continue to excite the market. Likewise, betting has seen increased usage of technology, helping improve efficiency and boosting user’s experience. Ecopayz, Paypal, cryptocurrencies are some of the payment options that have been adopted by bookmakers including those that offer best bookmakers in canada as part of providing incentives to the betting fraternity. Two industries are set to continue experiencing growth in similar trajectories, but gaming will be heavily influenced by technological advancement than betting.
The gaming industry is one of the sectors that saw huge growth during the COVID-19 lockdowns. With restrictions in place and limited entertainment options, adults and children alike turned to the game as a pastime activity. This development saw the industry record the highest revenues ever. The industry was valued at 162 billion dollars. Analysts indicate that this was just the beginning, the momentum that the industry set will be kept for years to come. It is expected that the industry will be valued at 300 billion dollars by 2026. That’s doubling in just six years. In this article, Kate Richardson (You can view her profile here), an online sports betting expert explores the current trends in gaming. She looks at drivers of growth and also what to expect in the future.
Where it all started
Ten years ago, few knew about gaming, it was almost a non-existent area where only the bold-hearted ventured, not knowing what the future holds. Technological development gave way to smartphones and operating systems that supported gaming infrastructure and the industry has never looked back. It has undergone massive developments to the extent it is becoming the largest by capitalization and revenues that are streamed annually. We can’t mention gaming without giving Android and Google Play Store the credit that they deserve.
Google was very instrumental in the development of the gaming sector as it gave developers a chance to put their creativity out there. This meant that even those who had no financial backup were able to open accounts on Google play and post their apps. These gaming apps were then downloaded using android operating systems. The mobile market was thriving so the games became pretty popular. We all remember the Angry Birds, Subway Surfer, Temple Run, Flappy birds among other short games that hit the market then.
That’s the journey we have traveled, moving from a period where people relied on gaming consoles to full adoption of gaming applications. One significant reason for this shift is that smartphones are readily available. These smartphones are equipped with the best HD graphics game where a variety of games can be played without any issue. With this new trends have continued to emerge giving users a great experience and top-notch entertainment.
So what gaming trends are we to watch out for now and in the future?
These trends include:
- VR/AR dominating the scene
- Alternative gaming distribution models
- New ways of retaining gamers
- Adoption of streaming
- Remote e-gaming fast replacing arena events
Virtual and Augmented Reality is becoming the mainstream
There has been an increase in the number of developers joining the Virtual and Augmented Reality- VR and AR mobile app development. Talk of Pokemon Go, this is one game that has received a huge following, it has recorded more than a billion downloads. The game is solely based on AR/VR gaming.
Alternative gaming distribution models on the rise
Distribution models have changed; gamers are not just relying on app stores to access their favorite games. Gaming applications are also available for download right from their websites. Google and Apple stores tendencies to penalize and remove applications that were using third-party revenue models have led to this shift.
Adoption of new distribution models is providing gamers with alternatives ways through which they can experience gaming. This development has seen a great rise in alternative platforms; Amazon, Samsung, 1Mobile marketplaces are just a few examples of third-party application stores that gamers can access their favorite games.
Game developers improve on ways they use to retain gamers.
Lifetime Value (LV) has become the mainstream measurement metric that gaming developers use to measure the performance of their games. LTV is a means through which the duration a gamer keeps the game in their device is expressed. It can be any duration and the longer it is, the better for a developer as it is an indication of the revenue and profit margin earned by the game development firms.
Game developers have greatly improved the ways which they use to attract and also retain gamers for a relatively long period. Constant updates, upgrades, and issues of new versions have proved to be effective methods through which developers can increase the Lifetime Value of the gamers.
Streaming now according to gamers is a chance to monetize their games
Courtesy of high speed and stable internet connections, streaming has become a new gaming monetization method. Game streaming platforms such as Facebook Gaming, Twitch, YouTube Gaming, Hitbox among others are now more popular than they were five or so years ago. This has provided gamers with alternative means to monetize their games. Before most gamers were mostly into gaming for purely entertainment purposes but now with the streaming platforms they can easily stream and earn through ads, subscriptions, and even donations.
Remote Electronic gaming championships
Before COVID, we had e-gaming tournaments organized in arenas, but this has now shifted to homes. Unlike other sporting activities, e-gaming has recorded an increased number of tournaments. However, e-gaming has come with its disadvantages, despite the increased number of tournaments, organizers are not getting a similar amount of revenue, there has been a drastic reduction in fees charged. A seat was going for $100 but with new development, the fee is now ten times less, but this has been compensated by the number of people attending these events, it has increased.
The gaming industry will continue to see more changes in the future; technology change will be the main driver. Consumer trends are also expected to change as we move into the future; this will dictate the types of games to be developed as well as the experiences that will be delivered to the gamers.