Video Games Market Revenue Scales With Augmenting Online Participation During COVID-19 Lockdown Period, Says PMR
Date : Apr 22, 2020 Author : PMR Editorial Staff
The continued lockdown in the COVID-19 pandemic is influencing consumer behavior and purchase patterns.
The continued lockdown in the COVID-19 pandemic is influencing consumer behavior and purchase patterns. With weeks under lockdown, the internet has emerged as a key component in keeping the people engaged. The number of internet users has significantly surged with the high adoption rate of smart phones and affordable internet prices. Self-quarantine led by the COVID-19 pandemic has emerged as a highly beneficial period for the industry operating online. The video games sector is witnessing a new high in terms of consumer registration and revenue. In light of the corona virus crisis, the physical video games stores have shut down, but the online video games industry is flourishing like never before.
The home locked population is diverting towards the online gaming market to utilize their free time. The game registrations have substantially surged and the download rate is continuously accelerating. Assessing the underlying opportunities during the COVID-19 pandemic, the online games companies are focused to enhance the compatibility of their online games with different models of smart devices and software. The availability of these games for every age group further surges the participation rate, generating high revenue in the market.
Cloud Platforms Gain Prominence
Demand for cloud gaming is also augmenting during the COVID-19 pandemic owing to the high penetration of the internet amongst the consumers. The cloud game provides are releasing new versions of their games. These cloud service providers are reviving their subscription models to attract consumers from every economic strata. Cloud platform enables the players to compete with a wide-community of users, enhancing the interest in the consumers. Apart from the hard-core players, the active participation of casual players during the COVID-19 pandemic has substantially increased the rate of adoption and downloads for different games.
Virtual Reality Games Generate Major Revenue
PMR highlights that family entertainment centers will raise major revenue in the market during the corona virus crisis. This lockdown situation has surfaced as the family bonding time which directly reflects on the online games dedicatedly made for entire families. The vastness of this industry that includes a variety of games and VR gaming zone acts as a major growth lever in the market. 3D technology and virtual reality (VR) gaming are gaining rapid traction in the market, especially among the new users.
The manufacturers of online games are involved in developing a gaming solution that offers augmented reality along with the virtual reality, thereby amplifying the consumer experience. VR games are gaining rapid traction in the market as a video game experience without the hassles of cables and devices. The massive remotely working population has emerged as a major consumer segment for the VR games. Alongside, the same segment is inflating the revenue in the market generated by VR games played on personal computers (PC). Participation of multiple players in a family also accounts for demand for pc based VR games.
Closed Markets Hamper Growth
With a rise in the demand for pc/mac games and VR games, the demand for their peripherals is increasing proportionally. The online gaming time has substantially hiked for the hardcore and enthusiast-level of players. However, the new players are facing difficulties in joining these games owing to the lack of VR accessories such as VR headsets. In general situation, a boost in the growth of pc games will directly influence the market for Pc mac gaming peripherals. But the closed physical stores during the COVID-19 pandemic are driving the market dynamics in a different direction. The unavailability of new accessories is hampering the growth of the video games market.
Demand For Gaming Peripherals Soars
The overall impact of the COVID-19 pandemic on the video games market is expected to be very positive. Internationally popular games such as Psych and Houseparty are known to draw major audiences during the quarantine period. PMR report highlights use of peripherals and accessories such as video and audio support to amplify during lockdown. To gain from this situation, new players such as Paytm have entered the video games market with more than 100 popular games. With an exponential rise in gaming culture, other associated markets such as content assessment services and cyber security markets are witnessing a surge in revenue prospects.
High reliance of gaming companies on China for gaming peripherals is arising challenges in the market. With sealed borders, the video games market is experiencing major disruptions in the supply chain of the accessories. Such developments are estimated to delay the launch of next-generation video game consoles, creating a major challenge in the market. The current situation of the pandemic is expected to have a long-term impact in the market with the majority of the new players projected to continue playing these online games in their free time even after the COVID-19 crisis subsides.