Oh, those bygone days where it was just Nintendo versus Sega…
It is no secret anymore how enormous the gaming industry is. With no signs of slowing down on the horizon, industry competition is going to heat up. Let’s look at three trends that are expected to shake things up over the next few years.
Who Wants to be the Netflix of Gaming?
Netflix leads all video streaming markets with a $23 billion revenue. Gaming, on the other hand, is a $150 billion-plus market without a dominant streaming platform. The tech companies want to change that and cash in big time.
All the big players (Microsoft, Amazon, Google, Sony, Apple, Verizon, and Nvidia) are vying to stake their claim as the “Netflix of Gaming.” They plan on having a library of games, cloud streaming to multiple devices, and a monthly subscription. Gamers may not be too keen on this idea of having to “rent” video games, however. They typically want to own them because they will be used far more than a movie ever would be. Experimentation of what works and doesn’t work will be occurring over the next few years until one company emerges with the best quality gaming experience.
Gaming is Social
Online game Roblox recently announced that they have reached a milestone of 100 million monthly active users. Roblox is popular because all of its assets are built by community members and it’s a place that kids can hang out.
Most of the reasons that the social experience is so great in places like Roblox is that the games are user-generated, full of social interactions, and include peer-to-peer competition, which is what many players want.
There is a unique dynamic that is happening between the social media world and the gaming world. Social media giants like SnapChat and Facebook are building games on top of their social platforms, while the game companies are building social elements into their games. This dynamic will be interesting to follow over the next several years.
More than the sports that are offered, the entertainment side of Esports is what drives their fan base. Big tournaments with high stakes and high visibility bring out unique experiences that are quite a spectacle to behold.
Companies can make money in this space by successfully connecting all the different ecosystem players (advertisers, fans, teams, event organizers) with one another to create a great experience. Recently, a 16-year-old won $3 million at the Fortnite World Cup. These kinds of stories continue to drive competitive gamers to be masters of their craft and potentially participate in similar events. It is all about bringing people together, competing, and being a part of an experience that users will remember for the rest of their lives.