In the age of digitalization, the online gaming industry is growing at an exponential rate. As one would expect, this has created a plethora of innovative revenue streams for gaming developers to monetize their designs. In next few years we will see even more impressive growth for the game industry, according to new research from industry analysts the global games market is expected to grow nearly 5% annually from $137.9 billion in 2018 to more than $180.1 billion in 2020. To put things in to perspective, a recent report claims that by the end of 2018, more than 2.3 billion enthusiasts will have spent an estimated $137 billion on games.
Within a ten-year period, the sector has gone from being the smallest gaming segment to the largest. In fact, it is estimated that by the year 2020 the mobile gaming sector will be worth close to $100 billion in annual revenues and will be expected to remain serious revenue generator. Other fields such as digital console game sales, VR games, AR games, console games, and eSports are expected to show a stable growth. Interestingly, the vast majority of financially successful mobile games are actually free to download. One such example is the hugely popular free slots games although free slot apps are free to download, it generates monthly revenues, just from users purchasing the game’s in-house currency. This goes to show that innovative gaming developers have recognized that significant financial rewards are there for the taking, even when users are not initially charged to download the app.
The term esports seem new but the concept isn’t. Esports is the part of gaming that’s competitive, where various genres of games are played competitively against other players, on different platforms. According to Forbes, eSports revenues are expected to surpass $900 million by the end of 2018, illustrating an impressive increase from the $655 million the industry generated the year previous. In the next five years, eSports will generate 1 per cent income of the entire gaming industry. The vast majority of the aforementioned financial growth consists of advertising, sponsorships and media rights.
Blockchain Based Gaming
A reasonably new addition to the industry is that of blockchain based gaming. In terms of monetization, blockchain based gaming has the leisure to install a similar model to that of mobile gaming, users are not charged a fee to play but they do have the option of purchasing additional in-game products. However, the key difference is that instead of using conventional payment methods users pay with cryptocurrencies.
Investments Reach Record Level
The steady growth in the gaming industry has allowed the investments to increase over the next two years and it will continue to do so. The total amount of investments made in the past year’s game initiatives exceeded 2 billion dollars.
It appears that the online gaming industry has a bright future. However, with the age of digitalization now transitioning over the world of blockchain technology, we could soon see a more equal playing field for developers and end user.