Why is the Gaming Industry set to be an Investor’s Dream in 2021?

The gaming industry has grown exponentially in the past 5-10 years and continues to do so. Due to the pandemic, the growth has improved even more since the beginning of 2020. When other businesses shut down, the gaming industry acknowledged a lot of new users all of sudden. 

This industry comprises game developers, designers, investors, marketers, and gamers of all ages working together to develop the latest games,  concepts, and offers. Sitting at home for months when people got bored, these online games played a crucial role in their entertainment. It acted as a medium for people to spend time with their friends and families virtually. 

With the increase in gamers during the pandemic, the gaming companies also acknowledged the surge. Be it a smartphone or desktop software; both gaming platforms engage a large number of people.

The Abundance Of Gaming Industry

The gaming industry’s value has crossed over $300 million, which is more than the combined markets for movies and music. This surge is primarily driven by a growing emphasis on virtual interaction during the COVID-19 havoc.

The gaming industry increased by half a billion players in the last three years, and the total number of players accounts for 2.7 billion people at a global level. The reports anticipate that more than 400 million new gamers are expected by the end of 2023. 

The profiles of these new joiners are drastically different than they used to be. 60% of the new gamers are women, 30% are below 25 years of age, and one-third are non-white. Whereas, previously, the statistics showed that out of total gamers, 61% were male, 79% over 25 years old and 76% identified as white. 

As the gaming community continues to thrive, the social aspect is becoming increasingly important in determining the overall experiences of gamers. 84% of respondents state that online video games help them connect with other people with similar interests. At the same time, three-quarters of them recognize that more of their social interactions now take place on gaming platforms. 

According to studies, most gamers spend an average of 15 hours per week playing, 8 hours/week watching game videos or participating in game streams, and 6 hours/week indulging in-game forums.

These social interactions are one of the major takeaways behind online video gaming’s growth. About three in four gamers have said that they expect virtual interactions to become a crucial part of the gaming experience shortly.

Owing to its tremendous size, the online gaming industry is playing a significant role in evolving the culture and entertainment globally and expanding its span in movie franchises, arena-based competitions, toys, and more.

As we watch this industry evolve, more and more companies are coming forward with comprehensive gaming platforms where players can communicate, meet, watch live-streamed concerts or listen to music.

These findings are part of a three-part series looking at the changing faces of gaming, from the industry’s overall growth to its challenges and opportunities approaching.

There are several reasons for the global online games industry getting bigger over time. The revenue is almost parallel to the entire entertainment industry combined. In 2019 the global video games market was estimated to be valued at +$152 billion, and during COVID-19 times, as mentioned in the above passages, it was tremendously abundant. And all these make the gaming industry investors dream places to invest in and earn profit.

Reasons Behind the Success of Gaming Industry

The Internet’s expanding its scope globally, and smartphones are becoming the prime tool for playing online video games. You may be surprised to know that smartphone online gaming accounts for approximately half of the online video games market revenue globally.

In 2019, 49% of the global population were mobile internet users, and the estimation for the year 2025 is 61%. Hence, smartphone penetration can be directly proportional to the online video games market.

Another prime factor is the easily available video games on the app stores such as Apple’s App Store and Google’s Play store. Before this, video games distribution was limited to physical sales and rarely available on the Internet. But since the advent of mobile Internet and smartphones and app stores, video games are just a few taps away on your mobile phone.

Conclusion

We all know that social distancing is vital in today’s time, but staying home for longer can make one feel isolated. This is where online video games stepped in and have proven a valuable way to socialize with friends and family when you’re at home all the time.

Due to the pandemic, there has been an influx of online gamers, making the industry appealing to investors looking to cash in on-demand, eventually making a profit.