The global market for video games reached a valuation of around US$ 170.53 Billion in 2021 and is slated to accelerate at a CAGR of 13% to top US$ 650 Billion by 2032. Developments in technology and continued innovation in both hardware and software to improve the real-time rendering of graphics are likely to drive the growth of the market throughout the conjecture period.
Mobile video games have gained high traction, capturing nearly 50% market share of the video gaming industry, while the immense popularity of the PlayStation has bolstered the market demand for gaming consoles.
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PlayStation and mobile game popularity is growing, which will increase demand for video games
In the video game industry, sports video games, or more commonly known as e-sports, have paved the way for a new phenomena. The worldwide demand for video games has risen dramatically as a result of the quick advancements in computing power found in gaming consoles.
In addition, as computer graphics techniques advance, video games seem to provide players more immersive experiences. Because of these enormous advancements, experts contend that gaming technology is no longer a barrier to the market’s rapid expansion but rather an enabler of it.
An excellent gaming experience is boosted by improved mobile hardware
The use of smartphones and other devices is at an all-time high, making video gaming more accessible, simple, and affordable than ever. We now have instant access to video games because to widespread technical improvements. All users have a real-time experience thanks to advanced graphics.
The most well-liked smart device activity is now mobile gaming. Smartphone usage is expected to rise as a result of easier accessibility and lower prices. Sales of mobile video games in particular increased during the COVID-19 epidemic as people’s screen time increased as a result of instructions to stay at home.
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.
- In January 2022, Microsoft Corp. announced plans to acquire Activision Blizzard Inc., a leader in game development and interactive entertainment content publisher. This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console, and cloud and will provide building blocks for the metaverse.
- In February 2022, Nintendo Co. Ltd continues its development expansion with the acquisition of long-time partner SRD. The deal is the latest step in Nintendo’s plan to expand its internal development capabilities.
- In June 2021, Tencent announced the acquisition of 85% ownership of Supercell, the massively profitable Finnish firm behind the hit game Clash of Clans, for around US$ 8.6 Billion
- In March 2021, Microsoft finalized its US $7.5 Billion deal to acquire ZeniMax Media, the parent company of Doom and Fallout studio Bethesda Softworks. The finalization comes just a day after Microsoft secured regulatory approval from the EU for the acquisition, and it will now bolster the company’s first-party Xbox games studios up to a total of 23.
Key Companies Profiled
- Activision Blizzards Inc.
- Nintendo Co. Ltd.
- NVIDIA Corp.
- Sony Corp.
- Microsoft Corp.
- Electronic Arts Inc. (EA)
- Ubisoft Entertainment SA
- King Digital Entertainment Plc.
- Supercell Oy
- Take-Two Interactive
- Vivendi SE