Online games have long been a big part of the entrainment industry. However, many don’t realize how big the game market is and how much it dominates the rest of the industry. This has been the case for some time now, but it’s even more noticeable now when the pandemic has created the conditions for the gaming industry to grow.
This seems to be a trend that will continue even in the years to come since for a younger demographic has grown up with online games and they will continue to play them as they start earning a disposable income of their own.
State of things
The gaming industry is currently a 179-billion-dollar business. There has been a surge in profits in 2020 that some estimate is as high as 20 percent. Some of the best gambling games have moved most of their players online since that’s where the younger players are and it’s a way to go avoid Covid-related restrictions.
However, the gaming industry is much bigger than gambling. It also includes online games that have nothing to do with traditional casinos and that’s the part of the industry that’s growing the fastest.
The video game industry has been booming for the last couple of years. That’s because there’s a variety of games to be played and a variety of platforms that offer high-quality entertainment. Video game consoles and top-of-the-line PCs are also more available now than they ever were before.
However, the biggest boost didn’t come from the consoles but mobile gaming. Phones are much less expensive and widely used than consoles and the quality of mobile games has improved significantly in the last couple of years.
Chinese markets are now open to the gaming industry. The government has allowed Chinese citizens to purchase consoles and that has provided the industry with huge new markets. Since more Chinese citizens have disposable income and interest in western culture than ever before, the market will continue to grow in the years to come.
China also plays a big role in the mobile and tablet gaming market. It’s expected that in the following year, the gaming market will have a growth of about 24 percent. That will bring the Chinese portion of the market to about $87 billion.
New console release
Whenever a new console is released there’s an increase in sales for both the new console and the now outdated ones that quickly become in reach for more players. This is what’s happening now when the two major gaming companies have announced that they are introducing a new console.
Sony has announced a Sony Play Station 5 and Microsoft has announced a new Xbox. This lead to an increase in sales by about 25 percent. The sale of actual hardware rose about 35 percent at this point, but this will continue to grow as more games that are made for new consoles only, come out.
How Big Is the Market?
In a new study released by NPD, 79 percent of responders said that they’ve played a video game in the past six months. The average length of play per week was about 14 hours. That’s an increase since an average gamer played for 12 hours a week last year.
This was partly due to the pandemic, but partly because due to the changing interest of the gaming demographic. Chances are that these trends will continue and that gaming will grow as the most important part of the entertainment industry.
When compared with other forms of entertainment, music is the least lucrative part of the industry. It has grossed $20 billion the previous year and that’s pretty low when compared to other industries that are considered a part of the entertainment business. Overall Box office profits on the other hand have grossed $42.5 billion.
The gaming industry is much larger than all of these combined. As a whole, the gaming industry has earned more than $170. The biggest part of that is mobile gaming that has 45 percent of the market, PC games are responsible for 32 percent, and consoles are 23 percent.
There’s another part of the entertainment industry that will play a big role in the years to come and that may seem small right now. That’s Virtual Reality as a new medium for gameplay and gambling. The technology isn’t new but it’s improving and it has recently reached new highest and therefore more games utilize it.
As time goes by the gadgets and the technology that’s needed to use VR will become more accessible and less expensive. Soon it will take on a bigger part of the entertainment market as the gaming portion grows as a whole.
To Sum Up
Online gaming is a multibillion-dollar industry. It’s now the biggest part of the entertainment industry. The gaming market brings in a few times more in revenue than box office and music revenue put together. At this point that’s about 170 billion in revenue and most of that comes from the mobile gaming market in particular.
The market will continue to grow in the years to come since conditions are right for it. There are new consoles and coming out, there are growing Asian markets, and young players have more disposable income to spend on games. All of this combined leads to a boom in the industry.