November 9, 2022 (Investorideas.com Newswire) The gaming market is experiencing high revenues and impressive growth globally, with a combination of factors influencing the upsurge. From video games and esports to gambling, people are turning to online recreation for fun, the chance to win money, and opportunities to socialize.
But what are the key trends driving the rise in the popularity of gaming, and will the sector's growth continue?
Worldwide, the value of the gaming industry has been estimated at $198.4 billion, with a projected average annual revenue growth rate of nearly 9% to 2027. Even free-to-play games, such as Fortnite, are seeing revenue growth through in-play purchases.
The Covid-19 pandemic has helped to drive growth, with worldwide lockdowns preventing people from seeking entertainment outside their home and causing them to find new ways to socialize.
With the overall rise in the popularity of gaming, the major players in the market, such as Sony, Microsoft, and Nintendo, are incentivized to keep producing innovative content and advanced gaming consoles.
Other trends driving growth in online gaming include mobile technology, cloud gaming services and 5G, which is particularly influencing the mobile-based virtual reality (VR) gaming market. Beyond VR, mixed reality and augmented reality technologies also offer a more immersive experience.
One key trend influencing the lucrative nature of online gaming is the rise in esports. Gaming has now become a true spectator sport, with leagues and championships in which professional-level gamers compete for cash prizes. League of Legends and Dota 2 are the most popular of these leagues, with the contests streamed online.
As a result of the growing popularity of esports, teams and developers are attracting corporate sponsorship and media rights deals. In addition, esports now boast their own national federations, while, to highlight esports' popularity and legitimacy, it was piloted at the 2022 Commonwealth Games.
One important boost esports has received has come from traditional sports teams and bodies. For example, the Premier League (PL) and Electronic Arts (EA) have partnered on the ePL, a competitive gaming tournament involving EA's FIFA game, with gamers representing the soccer teams. Likewise, Major League Soccer (MLS) in the US has the eMLS tournament, while there is a global FIFAe World Cup contest. Tie-ups between traditional sports and esports offer unlimited possibilities to grow audiences and boost revenues.
While gaming often refers to video games, the definition also covers gambling games, such as those played at online casinos. The global online gambling and betting market was worth $61.5 billion in 2021, and this figure is projected to increase to $114.4 billion by 2028. Again, the online gaming industry saw a boost during the pandemic lockdowns, when people sought at-home recreation.
Playing at home allows people to log on and access the gaming content in a way and at a time that is convenient. There are also multiple options to play, such as using different devices and cryptocurrencies. In addition, technology has advanced to offer live casino games with real dealers, slots with enticing graphics, and different types of games. Online casinos also run regular promotions that encourage, for example, people to try this addictive Pachinko game.
Overall, online gaming is becoming increasingly lucrative across video games and casinos, and all indications suggest that revenues and growth will only increase over the coming years.
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