A few industries today can boast a growth rate that exceeds 30% year over year, particularly with the worldwide effects of the pandemic which has stalled many other fields. However, one industry that’s seen incredible growth over the past 20 years and continues to do so is gaming – which currently has a total value of nearly 200 billion USD.
But, when you take a step back and realize that there are 3.2 billion gamers worldwide, 2.2 billion of which actively play through their mobile devices, it’s no surprise that this industry has such high revenues. This impressive technology sector is the intersection of world-class technology and consumer advertising. The industry also offers an extraordinary level of community engagement.
What is the source of the growing interest in gaming? What is the story behind its growth and how did it become so popular? In this article, we’ll be delving into the history of the gaming industry, outlining past progress points and pointing towards current and future developments that keep this innovative industry afloat.
Let’s get right into it!
The background of the gaming industry
Gaming began in the 1960s when arcade games became popular. Gaming was not a mainstream activity back then. Users had to travel physically to the arcade to enjoy gaming.
With the release of personal computers and the advent of the 70s, online gaming was becoming more mainstream. Since then, gaming has moved with the times and adapted to the new technology.
Gaming has evolved to include more complex software, improved graphics and online gaming platforms that have reached the vast majority of people on the planet. Gaming is more than a system. Now it can be enjoyed from any location.
Although major consoles such as the Nintendo Switch, Xbox and Playstation are still dominant, mobile gaming has become increasingly popular. The fact that gaming accounts for 43% in smartphone use is a testament to the depth of gaming’s influence on this medium.
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— Ignite Tournaments (@igniteyourgames) March 21, 2022
If anything has caused a rapid expansion to the gaming industry, it’s the arrival of the internet and the integration of these multiplayer services. Online gaming is a major part of many of the most popular games every year. More than 3 billion players around the world log on each day to play against other people.
To accommodate for this, platforms like Microsoft’s Xbox Live Marketplace have allowed users to completely turn their gaming experiences online. Instead of having to travel to purchase a game new, users can buy the same title online and download it directly to their devices.
Gamers from all walks of the world are turning to gaming as a means to enjoy their favorite entertainment.
A career in gaming?
Although gaming can be seen as a form of entertainment, eSports tournaments have emerged from modern adaptations. The market for in-game tournaments, where the top players face off against one another, has grown to a $1 billion business. This figure was reached in 2021.
The market is expected to grow, as reports predict the market will reach 1.62 million dollars in 2024. Many people travel from around the globe to compete in their favorite games. There are large pools of money that can reach several hundred thousand dollars at once. Sponsorships and advertising also generate a lot of capital.
This industry, just like sports events has generated so much buzz that many people tune in to see these tournaments. In 2021 427 millions people watched an eSports tournament, either a single match, or going in-person to view their favourite teams. Much like the industry’s total value, the number of viewers each year is equally growing, with games like Dota, League of Legends, Call of Duty, and Fortnite always bringing in huge audiences.
Twitch, which allows you to watch other players play online via Twitch’s application, has seen a rise in popularity. Twitch is a remarkable platform that has seen incredible growth over the years. In 2016, it was worth 0.1 million USD and in 2019, it’s valued at 1.5 billion USD.
Gaming is evolving, and eSports have made it into a higher level of entertainment. With gaming now bleed into watching, ESports, just like other sports, has evolved into a hub for discussion and community.
Play2Earn
Although gaming is constantly evolving, the latest developments in this area include its integration with blockchain technologies. Play2Earn is a new genre in gaming that allows users to play favorite games while earning money.
Unlike tournament gamers, you don’t have to be the best of the best to earn money through these systems. Instead, simply by completing objectives, quests, finishing games, or unlocking achievements, you’ll be able to generate in-game currency. Players can cash out the in-game currencies they earn through the connection to the blockchain via in-game cryptocurrency integrations.
NFTs can also be used in games to integrate into them. Non-fungible tokens also come in the form different characters, skill sets and moves. By obtaining these NFTs in-game, they’re able to use them to get an advantage over their competition. These NFTs can be sold, traded, borrowed, or bought within the game to earn an income.
Play2Earn is a new tournament that furthers the connection between blockchain gaming. Ignite Tournaments is an eSports provider that allows gamers from all over the world to connect with their tournament environment and earn cryptocurrency and NFTs.
Krystal Yan, CEO of Ignite Tournaments commented on the rising popularity of P2E events.
“Historically, the value stream in gaming has always been unidirectional, with gamers creating value that rewarded only the game publisher, who largely extracted value from users without providing any real rewards. P2E will change the way we think about gaming. Gaming can now receive rewards for their participation in the ecosystem. The publisher does not extract the value. Rather, it is created and shared.”
— Krystal Yang, CEO/Co-Founder
With this most recent connection between the blockchain and gaming industries, we’ve seen just how far gaming can push the limits. This will drive more gamers to turn to gaming as the possibility of earning money to play is becoming more prevalent.
Gaming is for everyone
Perhaps one of the most impactful reasons for gaming’s success as an industry is due to the sheer scope it provides. Gaming doesn’t just include one game genre or one way of playing it; it covers almost everything. You only need to take a look at the top 20 most popular games in 2021 to discover a wide range of gaming genres.
A wide range of styles rises to the top, from first-person shooters to building games, to narrative-driven experiences to online multiplayer. Beyond this, each year 1000s of independent games are published that introduce new art styles, ideas and formats to the gaming market.
Quite literally, no matter who you are, you’ll be able to find a gaming experience that you currently like. One person might be drawn to quick-paced shoot-em up games while another may prefer story-driven games on their iPhone. Realistically, there is no right or wrong way to game. Both count as authentic gaming experiences.
Whoever you are, you’ll be able to find a game that accommodates what you’re looking for – be it wonder, magic, escapism, or something new. When you look at the generalizations of American society and divide it by gender, 45% identify as women and 55% are men. The close split between these numbers further demonstrates that gaming – and the appeal of gaming – isn’t tied to any inherent attributes.
The same can be said for geographically: Gamers are found everywhere, in Asia and Europe as well as Latin America and Sub-Saharan Africa.
No matter what you’re looking for, the gaming industry and its incredible scope will have something that can accommodate you.
Final Thoughts
The days of gaming as a hobby based on developers in their basements are long gone. This billion-dollar market has grown to be an enormous success story. The industry has become something very interesting, with new types of gaming and infinite possibilities.
Gaming is a rapidly growing industry that has made it a steady career for those who are good at it. Online tournaments offer players the opportunity to win big and people can even make money online.
With the international scope, diverse audience, and regular developments, gaming is far more than just a pastime – it has become a worldwide sensation.