The online gaming market has evolved at a rapid pace over the past decade and a half. From ‘game & watch’ games to highly popular open-world online games, video games have come a long way in terms of both – graphics and the overall gaming experience. Out of all the digital trends that have garnered considerable traction over the past few years, the online gaming sphere is at the forefront. The online gaming market is booming at an impressive pace due to an array of factors such as increasing penetration of affordable internet, access to online games, and large-scale development of unique and engaging multiplayer games.
Digital Sales Peaking amid COVID-19 Pandemic
The advent of novel technologies including virtual reality, cloud gaming, augmented reality, has played an imperative role in elevating the uptake of online games over the past few years and the trend is expected to continue over the forecast period. Another factor that is expected to boost the demand for online games is the rise of the competitive gaming industry. The online gaming market has paved the way for an array of online streaming platforms such as Twitch and YouTube among others. The onset of these streaming platforms has played a key role in pulling in large audiences and boosting sponsorship deals with online broadcasters and individual streamers.
While the shift toward online gaming gained considerable momentum over the past decade, the advent of the novel COVID-19 pandemic is expected to provide a substantial boost to the online gaming market. The gaming industry in the U.S. is tipped to generate more revenue than the movie industry in the upcoming years out of which, the online gaming market is projected to have a considerable contribution.
Cross-platform Gaming Coming to a Reality
The significant progress and evolution of online and digital gaming models is a major factor that is expected to drive the demand for online gaming. One of the leading factors that are expected to play a critical role in the development of the online gaming market is the advent of cross-platform gaming. Gamer developers and vendors are increasingly focusing on consolidating their position in the competitive market landscape by rolling out games that are compatible with a myriad of gaming platforms such as Xbox, mobiles, personal computers, and play station to name a few.
Several gaming companies have identified the need to develop online games for all platforms to expand their consumer base. The gradual shift toward cross-platform gaming is a leading trend that is expected to propel the growth of the online gaming market over the upcoming years.
Streaming Platforms Pull-in Large Audiences as Gaming Celebrities Gain Popularity
Over the past few years, as the online gaming market continues to expand at a staggering pace, with it, online streaming platforms have garnered considerable traction. As online gaming continues to become mainstream, the demand for gaming tutorials and play through videos has witnessed a notable surge. In the current scenario, several upcoming players, professional gamers, and gaming celebrities are increasingly using streaming platforms such as Twitch and YouTube due to which, large audiences are tuning in to watch their favorite streamers and games – a win-win situation for both; the streamer and the audience.
Online streaming trend is set to provide a massive boost to the growth of the global online gaming market over the next few years. While online gaming streaming platforms such as Twitch continue to gain popularity, content creators involved in the online gaming market are increasingly using YouTube to upload pre-gaming recorded content to draw audiences. As online gamers continue to find value in these platforms in terms of engagement and monetary benefits, online streaming platforms are set to gain considerable popularity over the upcoming years.
Videogame Sales Witness Staggering Growth amidst COVID-19 Crisis
The advent of the novel COVID-19 pandemic has deeply impacted the growth of several core industrial sectors. However, the online gaming market is one of the very few industries that is expected to benefit from the ongoing global crisis as more and more consumers are increasingly turning to online gaming while abiding with the lockdown and social distancing guidelines laid down by the government authorities.
Due to the extensive lockdowns, the number of online gamers has witnessed a drastic surge over the past few weeks and the trend is likely to continue until the pandemic subsides. Sales of online games are booming and breaking records amidst the COVID-19 crisis. For instance, in Japan, around 1.8 million copies of Nintendo’s latest addition to the Animal Crossing franchise were sold in March. In addition, the gaming title sold more copies during the lockdown period in comparison to the launch sales.
Analysts at Persistence Market Research are of the opinion that the spike in the sales of online games is primarily driven by the coronavirus outbreak. While the sales of online games continue to move in an upward trajectory, online gaming viewership has also witnessed a drastic growth over the past couple of months. Both these trends are expected to provide a boost to the global online gaming market during the COVID-19 crisis. Due to the recent turn of events, digital sales of online games are projected to scale new heights particularly in 2020 as retail sales continue to decline. The projected growth in digital sales is expected to keep the ball rolling for the online gaming market during the COVID-19 pandemic.
All in all, the online gaming market is expected to witness a short-term boost during the COVID-19 pandemic. The mobile gaming industry coupled with substantial uptake of online gambling games is likely to provide winds to the sails of the global online gaming market during the upcoming years. Game developers and vendors are expected to focus on enhancing the overall gaming experience, minimize the number of glitches & bugs, and make the games more accessible to the gaming community.
By Age Group of Player
Online Gaming Market: Key Players
Some of the key players of online gaming market include, Peak Games, Gree, Electronics Arts, Bwin. Party Digital Entertainment, King Digital Entertainment, Arkadium, Playdom, Fun Technologies, Riot Games, NCSOFT, GungHo Online, Giant Interactive, Zynga, Wargaming, Tencent, Microsoft, Sony Corp., Activision Blizzard, Ubisoft, Sega, Konami, Valve and Others.
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Regional analysis for Online Gaming Market includes
The advancements in different aspects such as graphics and experience in the gaming sector are positively influencing the online gaming market growth. Numerous factors including a surge in the affordable internet, enhanced accessibility of online games, and increase in the variety of the games are propelling the market ahead. Novel technologies such as augmented reality and virtual reality are elevating the adoption rate of these games. The augmenting competition in the gaming industry is expected to populate the market with a variety of options. The onset of different streaming platforms such as YouTube plays a key role in attracting the audience and boosting partnerships in the gaming landscape. The advent of cross-platform gaming has turned out to be highly beneficial for market players. The product such as ganing tutorials and play through videos have gained immense popularity, generating significant revenue in the market.
The COVID-19 pandemic is expected to benefit the market with an increasing home-based population. Many games such as Nintendo's added Animal crossing franchise is estimated to go through record-breaking sale in Japan during the COVID-19 crisis. The mobile gaming industry is forecasted to experience a substantial increase in sales.
Established players profiled in the global online gaming market include Microsoft, Arkadium, Sony Corp., Zynga, Ubisoft, Activision Blizzard, and Wargaming.