Presently, the video gaming industry is one of the biggest platforms of entertainment. It has grown to a dynamic industry that claims to be a great competitor of the movie industry, which is another biggest entertainment forum. However, it has been revealed that more people are getting into gaming with every passing day and with the evolution of games to newer trends that have been the cause of new virtual athletes and ESports players. Since many games have been playing virtually, thus it is estimated that ESports might be the parts of the Olympics by 2025. Moreover, many PC games have been transformed into video games which are becoming very popular. Let’s take the example of the remake of the PC game “Call of Duty: Modern Warfare;” when the game released in 2019, its revenue was $600 million within 3 days.
Besides, the gaming industry is fascinating for many investors to invest more and more in industry. In addition, in 2019, the global gaming market was estimated as $151.55 billion which was predicted to grow to $256.97 billion over 2025. However, according to Forbes Magazine, the expected revenue of this industry by 2020 is $160 Billion which would be upsurge to $300 billion by 2025 and more than 2.5 billion people would play games all across the globe.
Notwithstanding, the investors who are deciding to expand their portfolio by investing in the gaming industry, it is crucial for them to get to know about the gaming ecosystem, how this industry has designed its environment, and who are the main contributors.
Factors Involved in Growing Game Ecosystem
Although below are some factors that are involved while structuring, monetizing, and launching a game which makes the whole game ecosystem in the evolving market.
Game developers are a team of designers, creators, and manufacturers of the game who design a particular game by following specific strategies. This team is actually the creator of the games.
However, the game producers are the ones who, once the game has designed and structured, advertise the game and promote it in the market.
These are different forums that permit these producers to present the game downloading purpose and release it in a specific area.
Once, the game has released in the market, the game is monetized in several methods:
- Monthly subscription
- Pre-loaded gaming collaborations
- Virtual earning
- In-app purchases
- Charging per app installation
- Game retailing
However, every technique is used which is relied upon the game. Thus, some techniques are projected to be popular and make a revenue of approximately $1 billion annually, and the biggest technique amongst them is the subscription-based game.
How Different Countries Have Built Game Ecosystem?
The emerging gaming industry is growing according to the income and developing interests of each person which boosts the modification of the global market. Furthermore, the market portrays high possible development with the growth of consumption of consoles, smartphones, and drives in the future.
Globally, North America, Asia Pacific, and Europe are the top ESports markets that hold the biggest revenues all across. North America set to hit $300 million of profit in the year 2019, Asia Pacific has been found to contain about 57 percent of worldwide ESports, however, 51 percent was contained by Europe in 2017 which was expected to reach $138 million 2019.
The Largest Share Market in the Gaming Industry
The Asia Pacific has been predicted to hold the world’s largest market share in the gaming industry where several Asian countries would grow with high aptitude in the market and these countries would comprise Japan, South Korea, and China.
The Japanese share market has more than 70 million gamers. As per a Japanese organization, Computer Entertainment Supplier’s Association (CESA) the worth of the gaming market in Japan is anticipated to reach more than $14 billion by 2024 which was approximately 13 billion in 2017. On the flip side, the video game consoles have also embraced a conspicuous share in the Japanese gaming market, in which Nintendo Switch comprises 11.35 million consoles in which PlayStation 4 with 7.59 million and new 3D with 5.85 million included.
Talking about South Korea, this state is also amongst the most notable countries of online gaming. According to the Korea Creative Content Agency, the scope of the gaming industry in Korea is predictable to extend to more than 14 billion in 2021 which was 6.7 billion by 2010. Moreover, the emerging perception of smartphones and app stores with the collaboration of hardware and software developers has also been a great source of the rising gaming industry in the country.
However, moving towards Chinese firms that are ready to avail the opportunities carried by Global Digitalization as a result of growth in the digital ecosystem. Thus, at the end of 2019, the Beijing government announced its plan of becoming the international capital of online video games by 2025. Over and above, several innovative technologies, such as 5G, are also a great reason which drives the mobile-based virtual reality gaming market in China.
Hence, most of the world’s prominent gaming industries are looking forward to involve their nearby regions and developing their position in South Korea. The gaming market is enormously split as the demand for online video games and growing the concept of mobile apps all over the region which indulges in a tremendous competition in the market, for instance, Microsoft, Sony Corporation, Nintendo, and many other firms which strive to release more innovative and next-generation gaming consoles to provide substantial rivalry in the market.
To sum up, the gaming industry is one of the most recent industries currently and it is still anticipated to develop dramatically within a few coming years. However, the investors are progressively planning to involve in this industry to get benefited from the developed gaming ecosystem and experience a huge advantage from it.