According to the latest report from GlobalData, the video game industry could be worth $300 billion by 2025. This impressive growth can be largely attributed to the ever-increasing popularity of mobile gaming as well as the newest trends in the industry such as cloud gaming.
In 2018, video games generated a staggering $131 billion. What many people may not know is that mobile gaming accounts for the largest revenue share, beating both PC and console gaming. This trend doesn’t seem to be going anywhere, with industry experts anticipating that mobile gaming will continue to outpace PC and console. But cloud and VR gaming could also see immense growth moving forward.
While many gamers still buy their favorite titles for the PC and console, the industry as a whole is on the verge of a massive transformation. Right now, the industry is largely product-oriented, but many signs are pointing toward a brighter future for an as-a-service model. This coincides with the advancements in new technologies such as cloud, 5G, and virtual reality.
Inevitably, these technologies will change the way people play and pay for their games. New business models are expected to support in-game micropayments. More games will also use the free-to-play model, thanks in large part to the incredible success of some titles like League of Legends and Fortnite.
Despite these emerging trends, many people still couldn’t let go of their beloved PC gaming rigs. According to FreeGamePick, there’s really no reason to abandon your PC as of the moment, so you could still play your favorite racing games for PC and MMORPGs. This is because streaming games still face a huge obstacle. Network limitations may negatively influence a player’s gaming experience. This proves particularly problematic in places that would take a long time to gain access to 5G technology.
While 5G is expected to be the solution to this problem, devices and telecommunications infrastructure that supports this technology isn’t expected to roll out until 2024. And even then, experts say that market penetration wouldn’t be significant until 2024.
Many game developers and tech companies still have high hopes for mobile and cloud gaming. As cloud technologies continue to mature, it’s exciting to see which companies will emerge as the industry leaders. PlayStation Now is one of the first to offer a game streaming service, and while it still doesn’t show the true potential of cloud gaming, this platform has increased the play time of each user. Google and Apple refuse to lag behind, recently launching Stadia and Apple Arcade, respectively.
Going forward, it’s interesting to see how PC and console games can keep up with their mobile and cloud-based counterparts. With streaming services presenting the opportunity of playing graphics-intensive games without expensive gaming hardware, a huge number of gamers would undoubtedly give them a try. Game developers for PC and consoles are looking to create even higher-quality games in an attempt to retain their user base. But it’s difficult to tell whether this would be enough to remain competitive, especially without abandoning the product-oriented business model.