The gaming industry is enjoying an all-time high. Ads, in-app purchases (IAPs), and subscriptions have turned the tides for gaming giants, bringing in soaring profits. But what brought this mind boggling growth? Here are 5 factors that have propelled the growth of the gaming industry:
As an emerging technology, cloud gaming is a potential cash cow for the gaming industry. It allows players to stream high-end games on a variety of devices, including mobiles and laptops. The only requirement is a good internet connection. It costs way less than regular console upgrades and additional hardware. In fact, due to its increasing popularity, cloud gaming is expected to grow over 15.3% in the coming years.
The global market of Augmented Reality gaming is being propelled by advanced technology and the interest of gamers. Unlike virtual reality, which uses intense video graphics to provide gamers with an immersive gaming environment, AR uses the real-time environment of users and enhances it with digital overlays in the game.
One of the most famous examples of AR games is Pokémon Go that earned a whopping 207 million within the first month of its launch. Since then AR gaming has become a trend that has been fueling the gaming industry.
“When pigs fly” used to be a common answer when gaming experts were asked if the cross-platform play was possible. But games like Fortnite, Minecraft, and Rocket League have proven that cross-platform gaming can be profitable for everyone involved. Many mobile games allow iOS and Android gamers to play together without any device-based constraints.
The integration of gaming and blockchain technology has increased the revenue potential of both industries. The blackjack websites have even started accepting crypto currency payments. But blockchain takes games a step further.
While traditional games have a closed system, the core logic and data of blockchain-based games can be analyzed and reused. The game assets are decentralized and are distributed among the players. If need be, these players can sell these assets as collectibles outside the game.
Thus, the value spent on the game can be recovered. This prospect has enticed a number of players as seen in the success of Ethereum game Crypto Kitties. More such projects are in the pipeline.
Hyper-casual gaming may seem like a revival of 70’s arcade fad but in recent years, they have become as popular as ever. These lightweight “tap to play” games are simple and addictive yet infinitely repayable.
Although they are small and draw nearly insignificant revenue from IAPs, these games have scaled due to their ads-based earnings. In fact, Goldman Sach recently invested $200 million in Voodoo, the hyper-casual giant. With the current stats, the momentum of such games is not slowing in the upcoming years.
Technological advancements have given rise to a number of innovative ways through which both players and developers are set to earn more out of the gameplay. Considering these factors, there is no doubt that this industry is set to become a booming entertainment business.