We tried to follow the trends affecting video game development to understand if it’s worth investing into this industry. In this article, we explore the most recent trends in the gaming business, including the development of hardware, the explosive growth of online content consumption, new trends in game production, and the future of gaming. Let’s start our informative voyage through the gaming world.
Understanding Gaming Trends
In 2027, all revenue segments are expected to increase significantly. According to Statista, the segment “Download Games” comes out on top with 25.4 billion US dollars. In contrast, the category “Physically Sold Video Games” decreases to 11.43 billion USD. The difference is 13.97 billion dollars.
New trends are emerging in the gaming industry, showing constant change. In the upcoming years, the following trends will have an impact on the video game industry, devices, and content consumption:
1. Mobile gaming is still expanding. The gaming industry’s most remarkable trend, mobile gaming popularity, will continue in the next years. This is due to the rising use of smartphones and tablets and the expansion of the selection of top-notch mobile games.
Despite already being the largest video game market, the mobile games market has tremendous growth potential in the future. Pokémon Go iteration, titles like Harry Potter: Wizards Unite, and Nintendo’s expanding support for mobile games will influence the market growth. Additionally, the mobile versions of the well-known online games Fortnite and PUBG significantly affect the market expansion.
In 2023, the mobile games industry is anticipated to generate US$173.60 billion in revenue. Revenue is expected to expand at a compound annual growth rate (CAGR) of 6.42% from 2023 to 2027, with a forecasted market size of US$222.70 billion. By 2027, there will likely be 2.3 billion consumers of mobile games worldwide.
2. The rise of cloud gaming. With cloud gaming, players may play games without downloading or installing them on their hardware. As a result, games may now be played on a more extensive variety of gadgets, such as smartphones, tablets, and smart TVs. Although cloud gaming is still in its infancy, it is supposed to grow in popularity over the next few years.
According to Statista, in 2023, the cloud gaming industry is anticipated to generate US$4.34 billion in revenue. By 2027, a market volume of US$18.71 billion is predicted, with revenue forecast to expand at a 44.09% annual rate (CAGR 2023-2027).
One of the most common ways spectators watch their favorite players broadcast gaming videos is on live-streaming video platforms like Twitch. Twitch had ten million distinct broadcasting channels in the third quarter of 2022, significantly surpassing YouTube Gaming Live, its closest rival, which had 443 thousand different streaming channels.
3. Growth of esports. Competitive video gaming, or esports, is gaining popularity worldwide. Millions of people now routinely watch esports competitions, and prize pools regularly top $1 million. In the upcoming years, esports will continue to expand as more and more gamers show an interest in both watching and participating in competitive video games.
When we speak about “eSports” we refer to local or global video game competitions that pit professional and amateur players against one another. The estimated value of the worldwide eSports market in 2022 was a little over 1.38 billion USD. Additionally, Statista predicted that by 2025, the global market income for eSports might reach 1.87 billion US dollars. With China alone accounting for over one-fifth of the market, Asia and North America hold the top two eSports revenue markets.
Gaming Devices and Trends: Shaping the Gaming Forecast
Since the days of basic consoles and pixelated graphics, gaming gadgets have advanced significantly. They now include a variety of platforms, each of which offers a different gaming experience.
Gaming Device Evolution: Console Gaming
The PlayStation, Xbox, and Nintendo Switch continue to be the gaming market’s mainstays. They offer excellent graphics, engaging gameplay, and a sizable selection of games. The latest next-generation system launches have pushed the limits of game realism.
Microsoft’s Xbox Series X, and Sony’s PlayStation 6 are next-generation platforms that promise significant improvements in graphics, performance, and gaming experiences. These consoles can produce images that are close to photorealistic thanks to speedier load times, ray tracing technology, and support for 4K and even 8K resolution games. Gamers may anticipate more realistic character animations, detailed settings, and fluid gameplay. Undoubtedly, these new systems will increase the bar for home gaming.
PC Gaming Innovations
For PC gaming systems, high-refresh-rate monitors with refresh rates of 120Hz, 144Hz, or even 240Hz have become standard. With smoother animations and less motion blur, these screens give gamers an advantage in fast-paced games like first-person shooters.
Thanks to artificial intelligence (AI), PC gaming is also transforming. NPCs (non-player characters) with AI capabilities can change in response to player actions, giving in-game interactions a more dynamic and unexpected sense. AI is also utilized to create realistic gaming environments and improve adversary behavior, making for more exciting and challenging gameplay.
A lot of PC games currently support cross-platform play, allowing players from various platforms to play together. This development encourages inclusivity and increases the player base for multiplayer video games.
Virtual Reality Games
With VR and AR gear becoming more and more affordable, the world of immersive gaming is fast expanding. While augmented reality places digital components on top of the actual world, virtual reality immerses gamers in totally digital settings. Thanks in part to gadgets like the Oculus Quest and the Microsoft HoloLens, HTC Vive these technologies have been rapidly gaining ground. Gaming in VR and AR offers a distinctive and alluring experience that conventional gaming consoles are unable to match. These headsets are changing how we see and interact with games, enabling us to enhance real-world environments with AR gameplay and explore fantasy realms in VR.
Mobile Gaming on the Rise
Mobile gaming’s ease has attracted a sizable and varied player base. The incredible development of smartphones and tablets is a trend we cannot ignore. From casual games to those with complex graphics, smartphones and tablets provide access to a vast ecosystem of games. Mobile gaming’s ease has attracted quite a vast and varied player base.
These formerly modest devices have evolved into powerhouses that can easily handle the most demanding games. The exponential rise in computing power drives this shift, upgraded graphics, and increased RAM. Because of this, game designers are increasingly making more intricate and sophisticated mobile games that compete with classic console and PC games. Mobile gaming has evolved from simple, casual games to excellent gaming experiences.
Video Game Industry Ad Revenue
The diverse video game ad revenue ecosystem helps users, developers, and advertisers alike. In-game marketing, sponsored content, and product placements are now standard in the gaming industry. By enabling the production of free-to-play games, this revenue not only aids in funding game development but also increases the accessibility of gaming to a broader audience.
Game production is heavily reliant on ad money. It enables developers to produce top-notch games without relying primarily on upfront payments or in-app purchases. The emergence of free or inexpensive games that appeal to a broad circle of players starts from this. Developers can spend more on game design, graphics, and content as ad revenue rises, creating more entertaining and compelling games.
Free-to-play games with advertising have made gaming more accessible. Players can get the first-class games without having to pay a subscription fee. Instead, consumers can take full advantage of the experience without engaging with adverts or making in-game purchases.
Ad revenue advantages are obvious, but it also has drawbacks. Key considerations include balancing ad placement to prevent game disruption and guaranteeing that ads are pertinent and unobtrusive. The ability to generate income while maintaining the quality of the player experience is a tricky balance that game developers must master.
Video Game Content Viewership: A New Era in the Gaming Forecast
There has been a significant change in how people consume video game material. Gaming enthusiasts may now share, watch, and interact with content in new ways. We should thank for this the development of live-streaming platforms and short-form video content.
Streaming Platforms and Viewership
Live streaming services like Twitch and YouTube Gaming have completely changed how players interact with their viewers. These systems offer a real-time window into a gamer’s life, allowing spectators to watch them play, speak with them, and even impact gameplay choices. In addition to strengthening the sense of community among gamers, live streaming has grown in popularity, providing new platforms for content producers to demonstrate their talents and personalities.
Short-form video-sharing services like TikTok and YouTube Shorts also impact the game industry. Gamers use these platforms to produce brief but compelling gaming material suitable for viewers with limited attention spans. Short-form videos give a bite-sized gaming experience that appeals to a broad audience by displaying spectacular moments and offering fast tutorials.
Esports and Competitive Gaming
The popularity of esports, or competitive video gaming, has skyrocketed. Millions worldwide now watch esports competitions, and the biggest events pack stadiums and draw substantial online audiences. Esports have become a legitimate spectator sport because of their competitive character, competent players, and high-stakes competitions.
The gaming industry will be significantly impacted by these changes in viewing video game material. Whether they like in-depth live streams, brief and snappy movies, or the excitement of esports competitions, viewers now have a wide variety of content.
The Economic Landscape of the Gaming Forecast Industry
The gaming industry has become a giant industry worth investing in, as it shaping entertainment, technology, business, and culture and becoming a multibillion-dollar global market. It spans various platforms, from mobile gaming to high-end consoles and PC gaming, attracting diverse audiences. Factors like advancements in technology and the growing popularity of esports have contributed to this remarkable growth.
Market Projections and Revenue in the Gaming Forecast
The number of video gamers steadily increases yearly, improving the market’s prospects even more. It has significantly expanded due to population growth, changing opinions of gaming, expanding demographics, improved accessibility, social contact, connectivity, and changing societal norms. These elements have helped video games become a widely accepted form of entertainment, which has increased the number of players worldwide. As of 2023, there will be 3.22 billion gamers worldwide, according to Newzoo. By 2024, however, it is anticipated that there will be 3.32 billion gamers worldwide.
The growth of the 5G network has significantly increased the number of gamers as well. To provide top-tier 5G cloud gaming experiences, AT&T and NVIDIA Corp. announced their partnership in January 2022. With this initiative’s help, users can access over 100 free-to-play games and games they own on reputable PC game retailers like the Epic Games Store, Steam, Ubisoft Connect, Origin, GOG, etc. Gamers can explore a virtual world thanks to the realistic, cutting-edge graphics built on NVIDIA RTX technology and AI capabilities.
Investment and Funding Trends: Gaming Forecast Analysis
The gaming industry is experiencing a surge in investments across various segments. Game production studios, esports, gaming technology companies, and streaming services are all attracting significant financing. The current trends reflect a strong belief in the industry’s potential for continued growth. The emergence of cloud gaming, virtual reality, and augmented reality is anticipated to draw major funding. Esports, which has already received significant investment, will keep growing.
Social and Cultural Dynamics in the Gaming Forecast
The gaming business is a cultural trend that contributes to interactions and society. The cultural impact of gaming is in everything from fashion to music to art. It serves as a platform for identity-building, self-expression, and narrative. The effect of gaming on culture will only grow as in-game events, virtual concerts, and partnerships between game creators and artists become more common.
Gaming Communities and Social Interaction: Gaming Forecast Perspective
Online gaming communities will keep growing and establishing relationships between people worldwide. With more live events, conventions, and gatherings, these networks will extend outside the online environment. Games will incorporate social interaction even more, fostering opportunities for friendship and teamwork.
Video Game Industry Forecast for the Next Year
Finally, let’s take a quick look at what the video game industry has for the coming year. Despite the difficulty of making a 100% confident prediction, the following patterns are likely to persist:
Continued Growth: The video game business will probably expand due to new game releases, technological developments, and growing audiences.
Esports Ascendancy: With more tournaments, bigger prize pools, and more spectators, esports will only continue to grow in popularity.
Technology Evolution: As virtual reality, augmented reality, and cloud gaming make substantial advancements, expect further innovation in gaming technology.
Content Creation: The rise of content creation, including streaming and short-form videos, will continue to reshape how gamers engage with their favorite titles.
Kevuru Games Expertise in Gaming Forecast
Kevuru Games, a gaming company with 11 years of experience in the market. Our mission is to provide game publishers with full-cycle game development production and give our clients player-centric advice as to in-game investments. With these years of experience and a deep understanding of the gaming ecosystem, we know how to make the game immersive and promote it to the market.
All in all, we offer a full range of mobile game development services, including:
Concept art and design;
Quality assurance and testing;
Game monetization consultations;
We regularly refine our strategies and ensure that your game stays ahead of the competition and generates significant revenue.
Whether your video game falls into the action, puzzle, simulation, or RPG genre, whether it’s a mobile game, mobile app, or multiplayer game, we help you develop the proper market strategy. As different game genres require different approaches. The gaming industry is constantly evolving, as are the development trends. At Kevuru Games, we monitor the trends in the industry and adjust our strategies accordingly.