Presented by Treasure Data
Four trends are about to transform the next generation of gaming. Join this free VB Live event to learn how previous trends have shaped the current state of the industry, and the major new changes that are about to create brand-new revenue opportunities for game developers and marketers alike.
Every decade has seen a leap forward in video game technology, the audience it attracts, and the opportunities they offer — sometimes several leaps forward, each bigger than the last. But a total transformation is coming, as some big industry trends emerge and converge. Audience reach and demographics are changing even more dramatically as the rise and continuing maturity of 5G and AR are bringing brand new possibilities, and it all impacts mobile in profound, innovative ways.
Here’s a look at each of these trends, which together are poised to create an explosion of revenue opportunities for both game developers and marketers alike.
The development of 5G + mobile gaming
This is the promise of 5G wireless technology: once the entire infrastructure is up and running, you’ll never need a wire or cable to stream again — everything goes mobile, and at high speed, with low latency. It’s the “last mile” solution, which delivers total connectivity directly to the customer from the network, without having to put a hole in your wall.
What does that mean for gamers? Well, the near-elimination of latency, which has always limited the ability of mobile games to offer a completely flawless experience. Going from 4G to 5G means that you’re going from about 10 milliseconds of latency to less than 1 millisecond — and that is an extraordinary boost, particularly for competitive gaming.
Developers of games like PUBG Mobile and Fortnite Mobile are the first to hit cellular, but the advent of 5G means one of the biggest barriers to the mobile market will be wiped away. Right now, that’s predicted to happen in 2021. A dramatically improved mobile gaming experience means that the explosive growth of the mobile market over the past ten years will turn out to have been small potatoes.
AR and VR technologies reaching their potential
The advent of powerful 5G networks is going to go a long way toward helping augmented reality (AR) and virtual reality (VR) gaming gain the penetration that’s required to really change the gaming landscape. Because while we’ve been promised the ultimate immersive gaming experience for some time, and some inroads have been made by content creators and developers, as well as eager early adopters, we’ve still got a ways to go.
5G offers high-speed, ultra-low latency and high bandwidth which could make the experience of AR and VR technology finally feel seamless in a way that finally taps into that nexus of consumer need, consumer desire, and quality product.
AR and VR implementation is also improving as innovations in hardware and software continue to be developed, from compute power to form factor, haptic technology to improved machine learningm and deep learning models that power those immersive realities.
That’s part of what’s behind the tremendous growth in worldwide spending on AR/VR products and services — and that trend is expected to continue through 2022, when it’s expected to achieve a five-year compound annual growth rate of 69.6%.
The game (audience) has changed
While many white men seem to still consider themselves the core and only legitimate group of games today, the world has swiftly passed them by. Today, the video game industry has diversified, with games aimed at every demographic, and the number of women playing games shooting up to 48 percent, compared to 50 percent of men. And while women have been historically reluctant to call themselves “gamers,” that percentage is rising as well.
But even non-gamers are getting into the act, with the improvements in AR and VR giving retail brick and mortar stores, and developers, big opportunities with gamification apps. They’re designed to draw shoppers back inside by offering rewards to shoppers who interact with the company’s game-like content and contests.
Gaming has also become a real-live spectator sport, bringing together video streaming services plus social media and competitive games like Fortnite, and finding an audience of unexpectedly avid watchers across the globe. With advertising, sponsorship, and media rights to competitive matches, global esports revenue is booming, and will hit $1.1 billion this year, up 27% since last year.
Whereas the player base has been growing at a 10% average annual rate since 2015, the spectator base has been nearly doubling! In 2017, esports had a total revenue of $655 million. In 2021, that number will be closer to $1.6 billion, while the total audience is expected to grow 15% to 454 million.
To learn more about the big changes coming to the gaming landscape, how to face the industry of tomorrow, and how to leverage change to increase revenue, don’t miss this VB Live event.
Don’t miss out!
What this webinar will cover:
- A historical look at gaming revenue and the impact of mobile networks
- Analysis of gaming demographic shifts, and what could happen when “peak millennial hits peak gamer”
- Inside data on esports, streaming audience growth, and what we can learn from “stick and ball” revenue models
- Predictions on the next generation of gaming experiences, and when these trends will converge and disrupt the industry
- Erik Archer Smith, Marketing Director, Data at Treasure Data
- Dean Takahashi, Lead Writer, GamesBeat