Different Ways the Gaming Industry Will Improve in Subsequent Years
There has been a drastic and impressive change in the gaming industry over the last two decades, which is poised to get even better in the next decade
12:34 21 April 2020
The rate at which technology keeps evolving and its impact in previous years shows how much the gaming industry is set to evolve.
In this article, we will explain the different ways in which gaming will improve in subsequent years, which could impact the potential risk-reward of many investors.
The Digital Revolution
Over the decades, we have observed the shift in electronic technology from mechanical and analog to digital, which we all use today. The adoption of the digital system began over half a century ago and is still being adopted into the world today with constant modifications. We moved from the era of CDs and DVDs to downloading or streaming favorite songs and movies.
This revolution has affected every part of our lives and it won’t stop any time soon, as the world keeps evolving with a new technological approach. Developers of video games have also implemented digital distribution, which helps them to cut down costs on manufacturing, shipping, and storage and also middlemen retailers. These middlemen retailers are also catching up with the digital revolution by diversifying their revenue streams and selling other things such as electronics, collectibles, and gift cards in exchange for digital currency.
The gaming industry constantly attracts new players and according to Newzoo, there are over 2.3 billion active gamers in the world as of 2018. In 2019, Statista showed that 40% of gamers in the US were aged between 18 and 35. This shows how both young and old are embracing the gaming industry, with no decline in the last decade, which suggests that there will be more new players in the coming years. This increase in the number of new players would also mean more work for companies working in the gaming industry and more improvements to accommodate everyone.
Gaming would be much more regulated in the coming years, as most regulators and lawmakers already target some top tech companies on how they handle user data and moderate their platforms. With the increasing concern on online gambling, more critics are pushing for regulation in the gaming industry, especially in the online sector.
Expanding Market Demographics
Zion Market Research predicted in 2018 that the global video-game streaming market would grow by 27.2% a year between 2018 and 2026. With this growth, about USD6,944 billion of revenue must have been generated. The expansion of this market is set to increase drastically in the next decade, as the number of players keeps increasing. This growth isn’t declining anytime soon with the constant technological advancements that give room to more creative ideas and new gaming features.
The Bottom Line
Since the first game was launched, there has been constant innovation, and as technology evolves, the gaming industry will continue to expand with new innovations and players.