For years, gaming has quietly played a significant role in the entertainment industry, but like many other digital activities, the epidemic has contributed to its astronomical growth. According to Research, 50 million Americans started playing video games in 2020, an increase of 31% from the previous year. Comparatively, users increased by just 7% during the preceding two years.
Many secular trends in the gaming industry are likely to continue, according to Equity Analyst Brian Nowak, who specializes in the Internet sector. Players may play with, compete against, and connect with gamers from all over the world, creating a worldwide consumer market.
- The number of players and the amount of time spent gaming is growing.
- There are more possibilities to profit from rising usage due to the acceptance of microtransactions and other in-game monetization strategies.
Three significant developments may be worth following for investors:
Despite the negative stigma that is frequently attached to gamers, playing video games has developed into a technique for establishing, building, and maintaining social relationships
Gaming is popular across all ages and demographics, In fact, whether playing on a PC, gaming console, or mobile device, half of all U.S. citizens surveyed reported playing video games recently.
The distinction between socialization and entertainment is becoming hazy. While most gamers play primarily for amusement, nearly a third (30%) of those surveyed claim that social interaction is the game’s primary goal.
Younger gamers place a premium on the social aspects of gaming. More than a quarter of respondents under the age of 35 believe that social interaction through gaming is more beneficial than through social media itself.
Microtransactions, an important source of income for the industry, are a direct result of the social component of gaming.
Gamers make in-game purchases to show off their personalities and establish connections with other players, much like individuals buy clothes, automobiles, and jewelry to establish prestige in the real world.
In-game purchases can be made for new lives, power-ups, or ad-free game subscriptions in mobile games. For console games, players can buy expensive cars to show off to other players and weaponry to help them play better. In metaverse gaming, where players speculate on real estate in a virtual universe, this activity is brought to its logical conclusion.
Bottom line: These transactions encourage user interaction and may contribute to sustained revenue growth.
New Platforms & Games
This year has seen the launch of many new gaming consoles, giving developers the chance to create ground-breaking new games. Because of their new processor architecture, higher visual quality, and faster storage, these new consoles also enable game developers to re-release classic games with improved gameplay.
There is also a chance to adapt console games for mobile platforms. In reality, a large number of today’s top mobile apps are simply mobile versions of console games.
In the upcoming years, user spending may still be influenced by the marketing of these consoles and the games they come with, both new and old.
Of course, no industry is risk-free, especially one that benefited greatly from the pandemic’s unique environment of people being at home. But Nowak adds, “We expect the tremendous potential for the sector going forwards given the expanding social aspect of gaming, paired with video-game producers’ ability to monetize increased involvement. Also get the best gaming crypto coins for valuable time.