Here in the digital age, the tech sector is a beacon of opportunity and growth potential. It’s difficult to pinpoint any other major sector that consists of such a diverse business ecosystem – the sector extends from major Big Tech players like Apple and Amazon right the way through to independent mobile app developers.
While we could look to several different tech industries as being examples of 21st-century success, there’s none that represents this ideal more than the gaming industry. Gaming is a leading player in the battlefield for consumer time, attention and resources. Furthermore, it set a blueprint for innovation and evolution that many contemporary tech industries strive to follow.
Bigger than Movies and Music
Microsoft has been a mainstay in the tech sector since its early days, but even this global giant isn’t immune to the allure of gaming. The corporation’s gaming investments and acquisitions have included several blockbuster deals, such as its recent $7.5 billion acquisition of Bethesda’s parent company ZeniMax Media.
As CEO Satya Nadella stated following the official announcement, gaming is indeed “the most expansive category in the entertainment industry” and the tech sector. According to Newzoo, in 2019, gaming overtook both the global box office and music streaming markets as players spent over $145 billion in the console, PC and mobile verticals that year.
Given that global gaming revenues have already surpassed the $180 billion mark in 2021, we can safely expect to see it outperforming several other mainstream sectors by the end of 2022.
Gaming’s Consumer Appeal
With content streaming services ensuring that global consumers can get the latest TV shows and hit movies at their fingertips, why is gaming specifically winning out over these more traditional verticals?
To begin with, gaming in the 21st century is much more sophisticated than it was during the 1980s and 1990s. It’s an immersive and interactive medium; gamers play not just for the escapism and chance to spend time in fantastical environments, but also to connect and socialise with friends.
The diverse range of games that are now available also plays a major role in its ongoing success. From free poker online in popular genres like iGaming and battle royale through to games incorporating virtual reality, modern gamers could spend a lifetime playing and still not get through the industry’s entire offering.
Diversity in games is also reflected in the diversity of platforms and mediums in the industry. The days of being bound to a console or PC to play the latest AAA titles are long gone; the era of mobile gaming has liberated gamers enabling them to play high-quality gaming experiences on the go. Mobile is now the most popular and lucrative gaming vertical, accounting for 52% of annual revenues in 2021.
Since its inception, gaming has harnessed the power of innovation and made key development after key development. Now, gaming is a fundamental part of mainstream culture and business; we only have to look at the gamification of advertising and the integration of machine learning and big data to understand its true impact.