Even from a casual perspective, it’s easy to see that the video game industry is worth a lot of money these days. You just need to look how much it costs to buy the average AAA release or Xbox increasing Game Pass prices again to see that. But how much is it worth in total?
Well, according to an analysis from management consulting firm Bain & Company (as reported by Financial Express), the global revenue of the video game industry will be over $300 billion globally in the next few years. More specifically, it’ll exceed $307 billion by the year 2027.
If the prediction is correct, this will represent a 9% increase on compound annual growth rate, or CAGR. For a bit of perspective, the industry in total was worth around $199 billion as of 2022, Bain & company says.
All the video game industry buzzwords
It’s no secret that gaming is currently in the midst of a “surge in deal activity,” especially with the likes of Microsoft’s acquisition of Activision Blizzard for a jaw-melting $69 billion. It’s possible, according to the report, that there may be an increase in similar deals, which means “success will hinge on good franchise management, fan engagement, and the ability to attract and retain top talent.”
The analysis also says that much of this growth comes from younger games, adding that the industry is:
Being driven by the heavy engagement of younger gamers, particularly those aged 13 to 17, who spend about 40% more time in video game environments than on other forms of media, including social media, music, and TV.
Customer service is also an increasingly important factor. The nature of gaming, as many of us have come to know it, is changing at a rapid pace, with players “expecting seamless transitions between gameplay, [socializing], and commerce in both physical and virtual worlds.”
As a result, video game companies are adapting to new trends and the shifting of the market in order to increase profits, which includes creating “highly [personalized] journeys for consumers, moving seamlessly across devices and platforms.”
I’ll be the first to admit that I don’t really understand how global economics works. However, many of us will not be surprised to see the video game industry be worth over $300 billion within the next few years. Equally, people aren’t blindsided by the fact that the way we consume games is changing. It’s just a question of whether this is a good thing in the long-run. I suppose it depends on who’s financially benefitting from all this, and I think we all know the answer to that (hint: it’s not you or me).
Published: Jul 16, 2024 09:43 am