For those who their teachers once told, “Playing video games will never get you anywhere!” the current prosperity of the industry is very satisfying. All aspects of gaming now offer a realistic chance of remuneration, whether you’re creating the tech or streaming games for fans to watch.
There remains a constant flow of big-budget titles being released by the large studios, games which are sure to be hits before they’ve even been reviewed. But there’s also an increasing number of independents producing titles, which can only be a good thing for gamers.
While it’s great to get the newest installment of a favorite series – Elder Scrolls VI anyone? – there is now an abundance of fresh games from independent developers. This helps inject a degree of originality into the market, introducing new concepts and ideas that challenge the big studios.
And it’s not just the games themselves; apps that connect gamers are also big business. In 2012 a small startup aimed to create a platform specifically for gamers to hang out. Almost a decade later and with almost $480 million funding, that small startup is one of the biggest names in the industry: Discord.
Not all venture capitalists see the same opportunities with gaming firms and can be reluctant to get involved. There’s undoubtedly a high degree of volatility, but with the right level of funding, there’s more than enough room for plenty more startups to flourish. Experts predict that the industry will be worth more than $200 billion by 2023. This level of revenue, and the gaming market’s effect on USD and EUR trading, will ensure that startups attract even more interest from potential investors.
But what are the trends that are helping gaming startups to rise to the top? Here’s a look at some of the most successful routes and what gamers could expect to see from new startups arriving on the scene.
Maturing Audiences
Gaming has historically been aimed at a young market, and that demographic is still one of the strongest. However, the first generation of gamers have now grown up – and they’ve got no intention of stepping away from something that they love.
This means that for almost the first time, developers are having to consider a broader audience base. It’s no longer enough just to bang out a title that appeals to young men; there are gamers of both sexes and of increasing ages who want to see titles that are relevant to them.
Of course, COD, FIFA et al will have an enduring appeal, immaterial of age but older gamers can be discerning. And with more money to spend than younger players, a developer would be foolish to ignore the potential revenue.
Having played all of their lives, gaming is intrinsic to the identity of older players and not something they’re about to turn their back on. Using multiple platforms and being open to alternatives such as eGaming, they offer the potential for wider growth.
Expect to see more hybrid games, fusing multiple genres to create unique experiences. And with gaming parents now raising their own children, there’s an even greater appetite to introduce play at an early age.
Games as a Platform
How games are played has changed rapidly in recent years, changing from being a solo endeavor enjoyed at home to becoming something that can be shared with others in real-time worldwide. Connectivity has altered the world of gaming irrevocably, influencing what is expected from future releases.
It’s now no longer sufficient for a startup to release a standalone game that can be enjoyed as a complete package. The most successful enterprises are recognizing that “games as a platform” is the step that needs to be taken.
Some time ago, “games as a service” became an essential move, a development that required additional content for players to access. This meant releasing new updates and providing in-app purchases, all of which helped games to raise the necessary revenue.
While games as a service remains a significant part of the market, looking forward means offering even more. Updates are only released infrequently, and for players impatient for more, it’s just not enough. Enter “games as a platform”.
“Games as a platform” includes live ops where different challenges, activities, and other content is made available on a persistent basis, sometimes even daily. An events calendar is created by the developers at the start, unseen by players, which is used to plan the content in advance. This is a very different approach to developers creating further updates in response to demand.
However, “games as a platform” is more than just live ops. Extra content which is unrelated to the progress of the game could be one option, such as a live hosted activity. Card collections, live concerts – the possibilities are endless but an integral part of attracting and retaining players in the future.
Esports
We leave the final word to esports, potentially the largest area of growth within the gaming industry.
With more than 15% year-on-year growth predicted, esports is expected to eclipse every other sports viewership in the US, except the NFL. Netflix has already acknowledged that esports is their biggest competitor instead of other film or TV channels.
With esports very much still in its infancy, gamers can expect to see many more players coming into the market. New startups will seek to include it from the outset, making it an integral part of their platform, rather than just tagging it on the end as an afterthought.
