Gaming Industry Remains a Smart Investment

Dubai – :

Despite global economic setbacks in 2020 due to COVID-19, the gaming industry has seen significant revenue and profit growth. However, in a surprising move, the industry may be moving into uncharted territory with plans to include on-demand game rentals and subscription services using cloud systems.

 The current crisis has complicated many lives, but the crisis certainly has its beneficiaries. There are plenty of companies increasing revenue from the current situation such as pharmaceutical companies, manufacturers of medical equipment and materials, food delivery services, streaming services, and, of course, gaming companies.

These companies have helped us to survive during the national lockdowns as we were able to order food from our favorite restaurants, watch new films in online theaters without the need to go to cinemas, take advantage of free time to play more video games.

Positive Market Response

Venturous investors successfully took advantage of the crisis supporting the aforementioned business sectors. The NASDAQ-100 stock market index of high-tech companies has grown by 35% from the beginning of the year.

Innovators like Elon Musk, who became the second richest man in the world after Tesla hit a $500 billion market capitalization, definitely benefited. Meanwhile, Alibaba and Amazon reported record-breaking sales volumes on their online platforms. Even oil majors managed to compensate for their losses because prices have almost returned to their February 2020 values.

The situation in the global market is normalizing step by step. Pharmaceutical giants such as Pfizer, AstraZeneca, and Johnson & Johnson have reported the development and testing of highly effective vaccines. Therefore, we can hope to breathe without masks by spring or summer 2021.

Perhaps the most intriguing beneficiary of the COVID-19 situation is the gaming industry. As people started to spend more time at home, even the busiest amongst us have 30 minutes or more to kill zombies or play FIFA or Madden on their consoles, computers, or phones.

This article covers the current situation in the gaming industry and the prospects for the leading sector.

An Unexpected Future Direction of the Gaming Industry

For a long time, gaming analysts said that the future would be dominated by AR and VR — augmented and virtual realities. Maybe there is truth to it. Nevertheless, something completely different is trending currently — cloud gaming services.

Google, Nvidia, Microsoft, Sony, and many other companies already have working projects allowing you to launch state of art games even on old devices. You can rent a game with a per-minute charge or buy a subscription from a service, which is a revenue stream that proved effective on Apple and Netflix.

However, you may ask, “Won’t companies suffer from these services?” There is such a possibility. Therefore, IT giants do not actively promote gaming services, despite the fast development of the sector since 2013.

Taking into account the development rates of digital technologies, it is logical to assume that cloud gaming services can drastically reduce the sales volume of consoles for one thing, but streaming services, game development, and console manufacturing are controlled by the same companies who can select what sectors to promote.

Consequently, the gaming market may expand beyond this initial stage of development. Consumers have shown considerable interest in paying only a few dollars for a monthly subscription rather than a hefty sum for a console and its games.

Nvidia and AMD may become great supporters of such liberalization of the cloud gaming services because these companies are the industry leaders of graphics processors.

Major Sectors

In 2019, the video game market surpassed $191 billion in its volume with the actively growing mobile games sector. The share of mobile games reached 54% in comparison to 34% in 2015 when the sector was on the same level as PC games.