The video gaming industry is about to make big splashes in the world. In fact, it already is, but based on projections, the industry could be generating $300 billion by 2025. With games like Overwatch, Call of Duty and Fortnite, the video gaming industry is definitely here to stay.
The recent years growth in popularity of these games has put the video gaming industry way up the world GDP charts. Interestingly, people's proclivities to be entertained are vastly giving ground from alcohol and smoking to more indoorsy types of activities, such as watching video on demand, streaming services, and of course playing video games.
Actually, more than 2.5 million people around the world are estimated to play video games and to entertain them, there is a constant need for new games. Only in America, there are more than 2,500 video game companies, employing more than 200,000 people. And this is only in the U.S.
But truth be said, video games need not be the only type of product that we are enjoying and there are quite a few alternatives, such as the casino gaming industry. When you juxtapose the numbers from both industries, you would immediately think to yourself, well – video games have some catching up to do. But why is that?
Video games are headed for a very good future, and there is the raw statistical data to back this up but the question is if we even need to look at statistics to understand something is quickly growing in the video gaming industry. The number of gamers is steadily growing and we can even talk about a generation of young people that identify themselves as gamers. Back in the 1990s, playing a lot of video games over socializing would earn you monikers such as “nerd” or “loser”, but today being a “gamer” is respected.
With $300 billion on the line, everyone in the video gaming sector is delighted with the progress that has been made. Gamers feed the gaming industry. Are video games a bubble, though? This hardly seems to be the case. If anything – the full potential is hardly explored yet.
Today, about 50% of all game developers are developing games for PC/Mac. This comes as no surprise as PC gaming has been getting all the love and attention, but this is only going to change in the future when mobile games are expected to make the bulk of the revenue. Did you know, for example, that mobile games generated $63.2 billion worth of revenue in 2018 when the market was worth $134.9 billion?
That's an impressive percentage of the whole and definitely worth examining in greater detail, plain and simple.
Yet, video gaming is not the sole source of entertainment in the 21st century. Gaming overall is growing rapidly. For instance, the global casino and gambling industry holds a value estimated to over $500 billion, which is quite a substantial amount. But how come gambling for money would generate more revenue than video gaming and is this trend about to change?
Well, to start with, there are all sorts of different money gaming activities, and many different gambling markets. Originally, focused around such hubs as Las Vegas, Nevada and since the 21st century – Macau, and possibly Japan by 2024, when 3 new Integrated casino resorts launches. Today, sports betting has become the fastest growing gaming sector and most industry insiders believe we have only seen the beginning, especially when it comes to regions like Asia and Africa. The growth of the sports betting industry in Africa has in large been made possible due to sports betting companies working hand in hand with developers of new payment applications and mobile technology to meet the needs of the african gambler. Not to mention the improved internet accessibility.
In Australia, Sports Betting is also on the rise but pokies remain to be the Aussies favorite game, played by more than 2.9 million people. Canada is another interesting market when it comes to gambling with more than 76% of the adult population (30 million), estimated to be involved in some type of gambling. This is very interesting as Canada overall is considered a “new” gambling market, just starting to develop.
These are only a few of the many positive trends behind the current growth of the gaming industry in new markets. These developments would would imply that the casino and betting sector will continue to dominate the gaming industry for years to come, especially when working together with other industries to meet the special needs of each market.
All things considered, people have taken fondly to gambling and the industry seems to be continuously expanding, adding more options on what to game on, not only when it comes to sports. Also, the measures designed to protect customers are in fact much more complex and successful than many realize. This is a good sign for the industry, because stricter regulation usually leads to shrinking, but not in the case of casinos and sports betting.
The best brands in the world, such as Caesars Entertainment Corporation, Paddy Power Betfair Plc, William Hill Plc, and many others, have made sure that their products are compliant with existing regulation, expanding into Asia and North America, while holding down their bastions in places like Europe.
While there is a reasonable argument to say that casino games are clearly the more popular segment, video games hold quite the sway. One of the biggest drivers of casino revenue is the VIP vertical where most people tend to spend millions of dollars year in and out.
Just in Macau, the VIP segment has reached over $5 billion, which is an outstanding amount. And this is just one of the segments in one of the venues around the world. VIP players are cosseted and preferred customers among many gambling properties.
On the flipside, we have video games, where developers make their products very accessible at no more than $60 per individual title. The big question right now is whether video games can actually overtake the casino industry as the most spent on vertical.
Well, probably not in the near future as there are many more reasons behind the success of the casino industry. One being the very popular casino resorts where they manage to make it about everything else, but the gambling. There are dozens of amenities, meeting spaces, bars, restaurants, clubs and concert venues all across the casino premises.
Therefore, the big revenue that such gambling brands drive are contingent on the overall offer rather than an individual segment of the entire experience, which is quite understandable. As to video games? Video games are going to be completely outstanding all things considered and they are going to keep growing hand in hand with the growing generation of young gamers but so will the casino industry.