Are Video Games Taking Over?
A Modern Necessity
As many know, the exponential surge of video game users has been phenomenal in the last decade. If video games have been there for decades, then why the recent increase? It's pretty simple, to be honest. With the progression of technology and online gaming, the ability to connect with people all over the world from your bedroom can be achieved with the click of a few buttons. Video games, a luxury of the past, have become a necessity of the present.
What makes these computerized games so addicting, anyways? That's an easy question to answer. Video games enable users to do what they are incapable of doing in real life. You want to build your dream house in a matter of seconds? Minecraft can do that. You want to learn how to fly a plane? Flight simulator can do that. The point is the possibilities are endless.
The video game industry is larger than the movie and music industry combined, having over 2.5 billion users worldwide. The global gaming market is set to reach $256.97 billion by 2025. When people think about gaming, they usually visualize a PC or a console, but mobile gaming has become very prevalent in recent years. Utilizing a normal good and equipping it with games has increased users to record-breaking numbers.
Industries like this are completely dependent on the user base. With video games becoming easier to access, we are seeing rapid growth in users across the world. Investors are recognizing that gaming isn't for a select group of people anymore, in reality, it's for everyone. This industry used to be controlled by a few elite companies, but now everyone wants a piece of the action, especially tech companies.
Amazon recently announced its new cloud gaming service called Luna. Luna will offer a subscription-based game access to its users. Amazon's launch will compete with the already well established Microsoft and Google gaming platforms.
Streaming is a major component of the industry. The platforms that stream these games are heavily dominated by big tech as well.
The professional scene is growing as well. E-sport athlete's earnings are comparable to those of traditional athletes. In 2019 alone, professional gamer, Ninja(Tyler Blevins), earned about $17 million. Who would've thought that gamers can make this much? Their source of revenue is through three main channels: streaming, brand deals, and donations. Once you have a certain amount of followers, streaming platforms are likely to offer you contracts, binding you to their platform. Brand deals are reliant on the number of followers you have as well. Many companies are willing to sponsor the gamer if he/she is willing to advertise a product to their followers. Donations are incurred during streaming when viewers donate money to their favorite streamers.
Just like traditional sports, E-sports is driven by being the best player in the game. Global tournaments are held to compete for cash prizes and glory. Millions of people watch these tournaments online or even in person. For example, the 2019 Fortnite World Championship was held at the Arthur Ashe Stadium in New York. Enthusiasts traveled from all over the world to experience the event.
The large user base suggests a promising future for this industry. E-sports already has more viewers than traditional sports, and with the constant increase in users, who knows what can happen. The gaming industry has evolved in the last decade and is continually adapting to keep up with the times. I predict, in ten years, households will be viewing gaming tournaments during dinner instead of football.