Gaming Industry Go This
09/06/2019
DRACULA: ORIGIN - How Will the Gaming Industry Go This 2019?

With the ongoing digitalization, online games continue to record growth at an exponential rate. A report by Fragrr promises that 2019 will be a significant year for the gaming industry.

The gaming marketplace has been flourishing and expanding over the years. Morgan Stanley predicts that in 2019, the gaming industry will hit $138 billion. This leads to the question: how will the gaming marketplace realize its potential in 2019?

Developments in the Gaming Industry

Commonly referred to as the holy grail of gaming, cloud gaming will form the pivotal investment for most games. Previously, gaming was done offline and within one’s home; now, gamers can play online and connect with other players across the world.

There is an ongoing debate about how cloud gaming is going to be mainstream. It is seen to bring about unforeseen partnerships. Therefore, you can expect competition from tech companies such as Google and Microsoft.

The above companies already own or run massive data centers which run enterprise applications. Cloud gaming offers the gaming marketplace an opportunity that supersedes interactive entertainment.

Amazon, for starters, is aiming for the cloud gaming service market and is at a better position due to Twitch-Amazon’s live streaming video platform. Amazon is distinctively positioned and currently has more than a 50% share of the market due to active user acquisition and cloud computing.

However, Amazon’s previous efforts to engage in interactive entertainment have produced not so good results. Despite increasing the company’s expenditure, Amazon did not record any tangible results. Therefore, based on previous experience, Amazon will probably choose to become a third-party in the provision of infrastructure to other companies such as Sony and Nintendo.

For instance, Microsoft generates substantial revenues initiating from cloud-based services. Therefore, if the company doubles down to gaming, then it will broaden its adoption by its customers and get a more significant share of the market.

Cloud gaming will also bring about competition, with each player seeking to achieve a unique objective. For instance, Tencent suffered significant losses when the Chinese government slowed down in their decision to approve mobile games.

Despite the government's attempt to improve, Tencent still preferred to be cautious by reducing their involvement in the gaming marketplace and focusing on other business segments which yield steady revenue with little or no government intervention.

On the other hand, Google has been slowly trying to find its way to the cloud gaming market. Google has cloud operations which generates $10 billion in revenue each year. The company recently hired a new CEO, who is likely to expand the company’s cloud vertical product in non-technological categories.

Subscriptions will fuel sales in 2019 as other companies adopt this strategy for profit. With gaming emerging as the mainstream source of entertainment, the industry should expect more scrutiny with a focus on children.

Final Verdict

2019 will thus witness a continued investment in the gaming marketplace in terms of content acquisition and infrastructure. We should expect unanticipated partnerships. For example, Google and Tencent are working together, giving the former an entry point to the market which has been unreachable for some time.

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