Video games have been everywhere for decades, entertaining kids and adults alike. They have changed a lot since the early days of computer games and the first versions of Nintendo and Atari. The days of pixel screens and limited sound are a distant recall as video games are becoming more and more popular than ever. As technology continues to evolve, so does the video game industry.
The creation of a video game has become even more complicated. Cost of making a game that will run on one of the biggest consoles has gone up by this huge complexity. However, it was never thought to add millions to development costs, but games today can cost tens and even hundreds of millions. This has pushed the development of the game in the Hollywood movie scene in terms of production and marketing costs.
The video game industry is huge. It’s bigger than the movie and music industry combined, and it’s only growing. While not receiving as much attention as the movie and music industry, there are over two billion gamers in the world. That is 26% of the world’s population.
Not surprisingly, companies want a piece of the pie. Analysts predict that by 2022, the sports industry will generate $ 196 billion. As it stands, technology companies want to be involved in this revenue stream. Tech colossuses like Google (GOOGL), Facebook (FB), and Apple (AAPL), have all completed plans to enter the video game business.
Streaming and the Involvement of Tech Companies
Unusual gaming companies, such as Facebook, Apple, and Google, are entering the industry. The tech industry is looking for ways to make video game streaming as common as streaming a song on Spotify or a movie on Netflix.
Microsoft (MSFT), already in the gaming industry through its well-known Xbox console, has launched Project xCloud. A video game streaming service that allows users to stream Microsoft Xbox games on PCs or other devices. The project was launched for use in early 2020.
In 2016, Facebook began building a gaming platform with Unity Technologies. Creating a framework for game development for people to make video games. Google has launched its own app, Stadia, which is Google’s cloud gaming service, which allows users to play the highest quality video games. Obtainable via Google Browser, phones, tablets, and desktop PCs.
The primary goal of all these companies is to allow players to broadcast video games without the requirement for a computer or video game console. As the world moves forward in life focused on mobile. As the trend continues, buying video games, in the form of cartridges or discs, is beginning to pop out the window.
Subscription streaming services are the future. They will be useful for video game companies, such as Ubisoft and Electronic Arts, as the cost of production, shipping, and storage will all disappear. Registration services also allow for monetization to take place throughout the year. Traditionally, games were purchased for holidays and other major events.
Technical Innovations – Video Game Industry
The real truth is here. Oculus VR, a subsidiary of Facebook, is working hard to improve the quality of the actual headsets it has already released. It was bought by Facebook in 2014 for $2 billion. Oculus Questline is an in-product offering with Facebook, which sells for $ 399. Facebook expects the updated models to announce the release in 2020.
Video games have already gone through many other forms of entertainment to the point of immersion, and the real reality will add another layer. There will also be additional tests with controls. Such as adding voice, touch screens, and touch to game equipment where the consoles add parameters to add to the input.
Apple is also targeting the release of a real-time headset in 2021 or 2022.
Market Demographics Are Expanding
Another trend in the video game industry is to expand the market to where people are going. People play games before and after in life, and the mixing of gender is near. Top athletes competing in Sports leagues have received enough recognition to apply for a visa for qualified athletes when entering the U.S. Games. They have a great complaint, and it is still growing.
Video games are so popular that some players stream their playing video games at home and make hundreds of thousands of dollars in doing so. This is another area of revenue for the video market.
Vintage Video Games – Video Game Industry
As the world becomes more nostalgic. We see the resurgence and re-creation of popular films and shows from decades ago, the same thing happens with video games. Vintage video games from the earliest days of the industry are in high demand. They have become very popular. Not only with older players who have seen these games but also with a new generation of players.
Many companies have taken benefit of this opportunity and are offering renewed forms of comfort. Nintendo (NTDOF), more than any other company, has successfully implemented this interest in retro video games. With the release of the Nintendo Classic Mini and Nintendo switch, two consoles that let you play classic Nintendo video games. This has been a strong source of funding for companies that existed at the beginning of the sector.
The Bottom Line
The video game business has always been about invention. New technologies, new controls, and new experiences are predictable. As the world moves more and more time spent on their mobile phones, gushing services, and playing mobile games will become an important source of revenue. However, major technology companies will look to use their current framework to get involved.
Perhaps the most exciting change in the video game industry is the growing number of gamers. With so many people playing games, creating the need for immersive entertainment, and looking for easy ways to access games. The future of the video game industry looks bright.