- Already considerable, the global video game market is projected to reach hundreds of billions of dollars, driven by an increasing number of gamers worldwide.
- Competition spans across consoles, PCs, mobile devices, VR, and cloud gaming platforms.
- To better improve their competitive power, companies are devoting resources to advancements in graphics, processing power, and gaming engines innovation.
OUR TAKE
The future of video games is characterised by innovation, inclusivity, and convergence with other forms of entertainment.
As technology continues to advance, gaming experiences will become more immersive, accessible, and interconnected, shaping the industry’s trajectory in the years to come.
–Miurio Huang, BTW reporter
It’s acknowledged that the video game industry is highly competitive, characterised by rapid innovation, significant financial investments, and fierce rivalry among both established companies and new entrants.
High market value and growth
The income of video games is already considerable, with the global video game market projected to reach hundreds of billions of dollars, driven by an increasing number of gamers worldwide.
Meanwhile the industry enjoys a strong annual growth rate, supported by technological advancements and expanding internet access. On the basis of estimated gaming revenue of gaming companies worldwide, Tencent, Sony, Microsoft, Apple, NetEase have all reached 10 billion dollars and above, and the statistic is still surging.
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Diverse Segments
Competition spans across consoles, PCs, mobile devices, VR, and cloud gaming platforms. Consoles such as Sony PlayStation, Microsoft Xbox, Nintendo Switch. And Cloud Gaming Platforms includes Google Stadia, NVIDIA GeForce, Xbox Cloud Gaming which was formerly known as Project xCloud, there are other competitions between Apple IOS and Android smartphones and tablets. These platforms cater to different gaming preferences and offer a diverse range of gaming experiences, contributing to the overall competitiveness of the industry. Developers compete in various genres in action, adventure, sports, role-playing, and casual games, each attracting a dedicated audience.
For example, Ray tracing technology allows for more realistic lighting, shadows, and reflections in games, enhancing visual fidelity and immersion. NVIDIA’s RTX series graphics cards and games like Cyberpunk 2077 and Control make use of this new technology. And VR technology immerses players in virtual worlds, providing a more immersive and interactive gaming experience. VR is applied into popular games like Oculus Rift, HTC Vive, Beat Saber, Half-Life: Alyx.
Innovation and technology
To better improve the competitive power, different companies devote in continuous advancements in graphics, processing power, and gaming engines drive innovation. Utilising emerging technologies such as VR, AR, and AI to introduce new opportunities and challenges, pushing the boundaries of gaming experiences.
Consumer expectations
Gamers demand high-quality graphics, immersive gameplay, and smooth performance. Games that exceed consumer expectations can gain a competitive edge in the market, creating pressure for developers. Consistently delivering high-quality games builds a positive brand reputation for developers and publishers. Reputation influences consumer trust and loyalty, impacting long-term success in the industry. Sustaining player interest through regular updates, downloadable content (DLC), and support services is also vital for player retention and monetisation. Players are more likely to invest in additional content or microtransactions if they are satisfied with the base game experience. In a crowded market, meeting consumer expectations can differentiate a game from its competitors. Unique features, innovative gameplay mechanics, and outstanding storytelling can attract attention and stand out among similar titles.
Frequent innovation makes the whole industry into a virtuous circle, while the industry competition is also increasing.
