How digital adoption is ensuring the future of the gaming industry
In 2021, the global gaming industry generated revenues that exceeded $180 billion – not bad for a market that, for the most part, has only been mainstream for around three decades. A massive driver in the global success of gaming has been its commitment to digital adoption. Indeed, it was the increasing digitisation back in the 2000s that kickstarted just what console and PC gaming could achieve.
Technology has played the biggest role in modernising gaming for a 21st-century audience. The iGaming sector, for example, is characterised by its vast range of innovative digital experiences and has made traditional casino incumbents much more appealing to modern gamers than brick and mortar venues are able to do.
Meanwhile, over half of the gaming revenues generated last year came from the mobile market – a segment that is utterly dependent on digitisation and connective technologies.
Having played such a pivotal role in developing the gaming market to the monolith that it is in 2022, what more can digitisation do for the industry? The answer is quite a lot. In this article, we’ll be taking a look at how digital adoption is securing the future of the gaming industry via innovations like cloud gaming and its increased expansion into developing markets.
Cloud Gaming
Cloud innovation and adoption is dramatically changing the way video games and mobile gaming apps are both developed and played.
Unlike gaming consoles or classic PC gaming, cloud gaming shifts game content execution from the local device to massive cloud servers. This means that players can stream games as compressed video frames, much like streaming a TV series on Amazon Prime or Netflix. It’s a process that takes fractions of a second to complete, delivering a gaming experience that looks, sounds and plays just like a game that’s been downloaded onto a PC or console would.
On the business side of gaming, cloud technology is rapidly accelerating time to market, meaning that indie developers and global publishing studios alike can create and publish games in record times.
We’ve already seen major steps taken towards widespread integration for cloud gaming. Entertainment giants like Amazon and Google have released GAAS (gaming as a service) platforms – Luna and Stadia, respectively – while Microsoft has been busy transitioning Xbox offerings to both its Xbox Cloud Gaming services and the more recent Xbox Series X service.
In 2022, we may even see more gaming being offered up alongside TV and movie content on the Netflix platform. According to Polygon, the production company is considering releasing a “bundle of games” that, like its TV content, would be available via a subscription.
Immersive Gaming via Enhanced Realities
Virtual Reality has been patiently waiting on the sidelines for several years now. Although significant breakthroughs have been made in this niche sector of the gaming market, expensive hardware costs and a limited array of universally-popular games have been barriers to widespread integration.
However, with new wearables about to hit the market, which will add brand new dimensions of immersive and realistic gameplay, we can expect to see player engagement drive significantly in the months and years following.
Augmented Reality, meanwhile, has become something of a staple in mobile gaming. 2016’s Pokémon Go kickstarted the trend for mobile gaming apps that blended elements of the real world with virtual game environments.
Unlike VR, augmented tech requires no costly hardware, just a simple smartphone, making this particular gaming sector much more accessible to a wider variety of gamers.
It’s also a rapidly growing market for mobile and console gaming. According to statistics, augmented reality gaming could be worth as much as $385 billion on a global scale before the end of 2023.
Ensuring Expansion Across Developing Markets
Digital innovation is also helping to expand the gaming industry across developing markets.
India has recently become the fifth largest region for gaming, mostly due to its adoption of mobile gaming. According to Statista, the Indian gaming market was valued at over 90 billion INR in 2020 and is expected to reach 143 billion INR in 2022.
The increasing deployment of advanced technology, from gaming software to expanded internet connectivity, is contributing to an industry that will provide an economic boon to the region as much as an entertainment one.
We’ve already seen top gaming companies like Ubisoft and Rockstar Games establish premises across India, indicating that the region could establish itself as an epicentre for games development and innovation.
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