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The video gaming industry is one of the most lucrative industries in modern times. The first concept of video games was introduced in the 1940s. Though those productions were not technically qualified to be called “video games” but the idea of video gaming was concocted during that period. In its infant stages, it was an arcade-style game called Tic-Tac-Toe, which was invented by Josef Kates and Nimatron. It was an electromagnetic gaming device developed by Edward Condon. In truth, those games and gaming devices could hardly be associated with anything we know as video gaming or digital gaming today. Nevertheless, those early inventions were indeed revolutionary and we cannot dispute they have set the stage for the future of video gaming.
Since the early creations, the gaming industry has embarked on a journey of progressive modifications and in a period of fewer than 80 years, the gaming industry has evolved from Nim-playing gaming devices to what we see today, deploying across a whole myriad of platforms, from mobile consoles to handphones and highly configured desktop computers.
It is worth mentioning that the personal computers might not have advanced as quickly if it weren’t for the evolvement of video games. Video Gaming has been a tremendous impetus in the rapid advancements of graphic cards in personal computers due to higher and higher demands for graphic-intensive resources. And as the games got even more advanced, 3-D graphics cards, faster CUPs, and dedicated co-processors evolved.
Economics & Revenues of Video Gaming
Video gaming is no longer a hobby like it was some 30 years ago. There was a time the video gaming industry creates more revenues than the film and media entertainment industry. Given its intense popularity on a global scale, the video gaming industry has grown by leaps and bounds over the last 20 years.
Currently, the video gaming industry’s revenue stands at about 70 billion dollars and is expected to tip 130 billion by 2020. It is one of the most profitable industries in terms of margin per cost. If we delve deeper into those stats then we would find that the United States and China have produced more revenues than the rest of the world combined. When it comes to the crown, China has surpassed the United States both in terms of player population and total revenues.
China accounts for 32.5 billion dollars in revenue or 41% of the entire revenue of the international gaming industry while the United States accounts for 25.8 billion or 32%. The other notable giants in this list are France, Germany, the United Kingdom, Russia, and Canada.
As time evolved video gaming has become more and more advanced. This is pure economics. When there is a demand, big corporations are all in to invest as there is money to be made. From being played on magnetic screens to the advanced control consoles. Now, most of the video games are console-based.
Only a handful of companies have predominant monopolies on game consoles and their products are selling like hot cakes globally. Let’s check out the leading manufacturers for game consoles and the most popular in terms of player dominance.
When it comes to the most popular, Sony Playstation leads the pack with an estimated 20 million players.
The second spot is secured by the Nintendo switch. The switch has roughly 12 million players.
Xbox one is also one of the leaders with fast-growing video gaming consoles. Statistically, it has about 10 million users.
This is another new Nintendo product that occupies the top position. It is Nintendo’s latest invention in the field of video gaming and it boasts 7 million users.
Since Android and IOS dominates the mobile industry, playing video games on mobile became a norm, actually, it is spreading like wildfire. It makes sense, doesn’t it? Who doesn’t carry a mobile phone nowadays? Currently, there are 75 million mobile gaming users on the planet. And alone 73% percent of this population comes from the United States!
The mobile-based video gaming has expanded exponentially and after seeing the potential growth, all the leading manufacturers decided to invest and launch their best games across all mobile platforms, leaving no rocks unturned.
Games like PUBG, Fortnite, Candy Crush, Angry Birds, and COD have taken mobile gaming by storm. They are the most downloaded and played games on mobile devices than all of the rest of the games combined. It is not hard to imagine all this is a fact as we witness people everywhere, from kids to adults playing games on their mobiles, whether they are on a bus, in a café, in the office (whoops!), literally anywhere!
Video Gaming tournaments
Since video gaming became a sensation, companies and marketing companies start to incorporate every avenue to boost revenue and authority in the business arena. We are seeing chains of international video gaming competitions, conventions and tournaments being held as highly telecasted events.
Many video gaming companies have introduced such tournaments to boost their sales as well as it serves as a powerful advertisement instrument. These tournaments attract top players across the globe to converge, and they would compete to win handsome prizes. Only gamers can understand the adrenaline rush at these competitions as we witness the best players compete against one another.
This year some of the biggest tournaments were Dota 2 Tournaments, Worldwide Fortnite tournament, Call of Duty tournament, NBA 2k20, and Tekken 7. These tournaments are often huge success and churn in millions in revenue. To attract even more masses, great incentives were extended where we have seen prices in the region of 30 million dollars!
Future of Video Gaming Industry
With that much influence and profits on the table, the video gaming industry will continue to prosper and grow even faster than ever, with ever more advanced gaming devices developed and present to the world. We are certain that the industry will continue to boom.