A recent report has projected an annual growth rate of 6% for the game industry. It also predicted that the industry will reach $250 billion in valuation by 2028. The report explained that the growth will be driven by the vast range of options in platforms and mediums for players.
Sources: IDC; Euromonitor; PwC; Video Game Insights; TD Cowen; Bain & Company analysis The video game industry is on an upward trajectory
The video game industry is shooting up the levels. This is because it has performed better than other media types and has gotten more attention recently. In 2023, the game industry’s revenue was up to $196 billion. This exceeded the combined revenue generated by streaming platforms and box office sales.
The reach of video games is not limited to PC and consoles only. It has expanded from mobile games, cloud platforms and now virtual reality experiences. There are diverse choices available to a player ranging from VR games to general mobile games.
According to the research, game audiences will continue to increase as the players are spending more time on video games compared to any other kind of content or media.
Source: Video Game Consumption Survey by Bain & Company
The study shows that younger people, from 2-18 years old, are playing 80% of the games. However, it may vary across different age groups as well. 52% of people of any age are also playing video games on a daily basis.
The game industry is taking a shift to more immersive games
During the pandemic, gaming platforms were used as mediums for social interaction by youngsters to meet their friends. This is the reason why 30% time of younger players is spent in video game environments now.
Recently, games like Minecraft and Roblox have started a new trend. The trend allows the players to co-create their game experience. About 79% of gamers like to play games with user-generated content.
Daniel Hong, an executive at Bain and Company said:
“Players say they want more immersive games and more interoperability across devices and platforms. They’re also spending more time in game environments, socializing, shopping, and consuming other media,”
In the future generative AI will allow the players to enhance their gaming experience. In a recent podcast Roblox’s chief scientist even shared the possibility of game creation by the use of voice only.
Gamers have also started streaming and have become popular names in the industry, with millions of followers and earnings. These streamers bring more engagement to the games by promoting and playing live on their channels. The game industry is not just about gaming anymore. It is the modern way to generate video content, shop, socialize, and much more. Gamers tend to spend more when they engage in other activities in a gaming environment.