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The gaming industry today is worth a staggering $180bn worldwide and it’s only predicted to grow bigger. In fact, in five years’ time, it’s estimated that it will reach a value of $347bn. So, when it comes to investing in the gaming industry, there are plenty of ways to make your money work for you. Investing in countries that are experiencing high growth, like Poland who’s industry is predicted to grow by a steady 6.52% over the next four years, is a good strategy for slow but safe rewards. Finding out the reason for this growth is important too, in the instance of Poland the hugely popular series The Witcher will have contributed massively, as the brand became global. Looking into the reasons can help you to spot when the next boom might be coming.
Of course there’s also the high risk, high reward option of investing in a small company that’s growing, or investing in the giants who are already proving they know how to do it right. Whichever sort of investment you’d like to add to your portfolio, we’ve got some information on who’s running things in the gaming industry right now that you might just want to take a look at.
Smartphone Gaming
Although smartphone gaming is the newest major subsector within the gaming industry, it’s also the most profitable. It recorded almost $80bn in revenues last year and has achieved this mainly by being accessible and flexible. The accessibility of smartphone gaming is a huge string to its bow as the majority of people own a smartphone, meaning that the majority of people can partake in smartphone gaming without having to buy a console. They can simply use something that they already use every single day. If somebody habitually uses their mobile device anyway, then, as they continue to use smartphone games, a habit is formed alongside their mobile use. Wordle is an excellent example of this. People read the New York Times on their way to work and also do the regular morning Wordle.
This accessibility is further compounded by the proliferation of free to play games. If you’ve already got a phone and the game is free to play, then there are absolutely no barriers. Of course, free to play games can only make money through advertising and, whilst this is a valid business model, freemium games offer another opportunity to capitalise. The freemium model allows players to enjoy a totally free gaming experience, or if they would like, they can upgrade, enhance or expand the game by paying for certain extras. Coin Master is a great example of the freemium model and how it can be lucrative. Thanks to clever marketing and a simple to use interface, Coin Master is the highest grossing app in Poland, standing out against huge companies like TikTok and Google One.
The Online Casino Sector
Casino gaming is interesting because it falls across two different categories, one newer and one more established. This means that it has a number of facets which traditional gaming companies don’t have. It is a versatile sector that has the greatest minds from two industries behind it. It’s also incredibly diverse across countries; in Poland, the biggest casino site is lottery based, whilst in neighbour Belarus, a sports betting site wins. These differences would be difficult to predict without in-depth knowledge of the culture of each country, which is why it’s so important to research before investing.
The other way to invest is by looking into developments that will change the industry as a whole. For example, the invention of live casino gaming is being promoted by the Polish casino online Unibet among the others. This uses the streaming technology of gaming giants like Twitch to live stream a real croupier to the audience at home. Then, using pioneering user interfaces, the gamer can communicate instantaneously with that croupier, creating an experience that’s remarkably similar to real life. This technology has potential worldwide, so the stats for Poland and Belarus and even China might level out in the short term.
Console Gaming
The console subsector remains the giant of the gaming industry, contributing 30% of global gaming revenues. Understandably, there are some massive rivalries in such a profitable sector but without a doubt the most notable is between Sony and Microsoft. These two console companies both pitch to the same young male market, meaning that their marketing campaigns often closely follow one another and focus on console exclusivity. This simply means that some games are released for Microsoft Xbox and others for Sony PlayStation, causing their target consumer to either pledge their allegiance to one console and miss out on some releases, or opt for both. Some games developers have sidelined this rivalry and made huge gains thanks to it. For example, Counter Strike is the single most popular game amongst hard gamers in Poland and it owes this at least in part to its allegiance to neither brand over the other, as titles like FIFA that have picked a site lag behind in this country. Conversely, in the UK FIFA 22 leads the table, despite its allegiance to PlayStation.
Interestingly, whilst Nintendo lagged behind for years, it has now made huge strides in terms of revenue thanks to its decision to target a different target market. These are the people under 30 who consider themselves casual gamers.
This article is an interesting look at the current state of the gaming industry and the sectors that are the strongest. It’s great to see the industry growing and providing diverse entertainment options for gamers. I think it’s important that the industry continues to expand and create innovative opportunities for gamers.