There is more and more evidence to prove that Netflix is set to wade into the sea of video games, as early as 2022. How could that change the game?
- The online gaming industry is predicted to earn nearly $1194.8 million by the end of 2021.
- Around 2.7 billion people are estimated to turn into gamers by early 2022.
- The gaming industry revenue is forecasted to grow by 40 percent by 2022, according to Deloitte.
- According to reports, Netflix is looking to expand into the gaming industry as the company confirmed plans to do more interactive entertainment.
The gaming industry is emerging as the future of the virtual world. Even before Covid-19, digital games were on the rise. The global crisis catalyzed the entire process as it disturbed the available physical forms of entertainment. Did we also hear that Netflix is offering game bundles?
It is no secret that, for several reasons, the total number of gamers reached a new record in 2020. The global gaming space is predicted to have witnessed a growth of 40 percent in recent times that also had a knock-on effect on sales. For instance, Nintendo saw a 400 percent profit rise by the end of the first financial quarter in 2020 alone.
Latest reports suggest that 2.69 million gamers played video games by the end of 2020, and the number is all set to rise to 2.81 billion by the end of 2021.
With more than 110 million people affected and nearly 2.4 million casualties, the pandemic continues to hit daily life harder with each passing day, affecting economies globally, resulting in millions of job losses and lifestyle changes. Though several industries are reeling, the video game industry had exponential growth during the past 12 months. At one point, it even reported having outgrown its film counterpart.You will find more infographics at Statista
PubG, Pokemon Go, and Switch Continue to Entertain
The majority of the growth in the 2020s, $179.9 billion sales, was recorded in the mobile phone gaming space at $87.7 billion (24 percent up) after consoles came in with a 20 percent rise at $52.5 billion and PC recording another 11 percent growth at $39.5 billion, according to a MarketWatch analysis of data from International Data Corporation. Also, mark that the data does not account for the hardware sales for computers and phones.You will find more infographics at Statista
Tencent‘s PubG emerged as the most popular and biggest seller of title, bringing in a 65 percent increase in growth than the previous year at $2.6 million. Another game from Nintendo — Pokemon Go that was launched in 2016 continues to remain as popular as consistently as it remains the largest money-minting franchise of all time, earning more than $90 billion.
Microsoft, Sony, and Nintendo’s biggest console makers recorded sales that were higher than expected and estimated much larger revenues in anticipation of new lockdowns. 2020’s best-selling console goes to Nintendo Switch. However, the recent launches of the next-gen consoles – Xbox Series X and Sony PlayStation 5’s impact remains to be fully discovered because of supply issues in most parts of the world.You will find more infographics at Statista
Sony and Microsoft Struggle to Meet Ever-Rising Demand
With their launches of next-generation devices, both giants continue to struggle to meet the surging demand while the supply chain remains disrupted amid worldwide disturbances. Previously, Microsoft had disclosed that it had 115 million Teams, daily users, in October. While the Xbox Live online gaming service has over 100 million active users monthly and the mobile version has 60 million daily users. As of March 2021, the total number of PlayStation Plus users was 41.5 million, and Playstation Network’s subscribers stood at 114 million.
The spike in the number of active users reflects an increase in sales of in-game features. Experts observe that the rise in user base could increase mainly because of the lockdowns and the growing accessibility of smartphones. Most big game publishers are now spread across all platforms, including Activision Blizzard with 2020’s best-seller Call of Duty, Take Two-Rockstar with online cash cows, Epic Games of recent Fortnite fame, Red Dead Redemption 2, Grand Theft Auto V, Electronic Arts with sports titles like FIFA, Need for Speed, and Madden all seem to have recorded a spur in revenue from active users and sales.
The online gaming industry is predicted to earn nearly $1194.8 million by the end of 2021. The growing bandwidths that make online games so entertaining, immersive, and engaging have led to incredible growth worldwide — from $20 billion in 2010 to $160 billion in 2021. The number in itself is more than enough to speak for how the online gaming industry has taken over many other sources of entertainment like music, books, live concerts, events, and movies. Around 2.7 billion people are estimated to turn into gamers by early 2022.You will find more infographics at Statista
The streaming giant is determined to add a range of games to its existing catalog of movies and TV series. Netflix is reportedly looking at hiring a senior executive, an expert in the video gaming industry, to lead the same.
The subscription model is likely to be similar to that of Apple Arcade that gives unlimited access to its choice of available games. According to Accenture’s April study, Netflix’s calculated move is set to open a fresh and very lucrative revenue stream for the company, significantly when the global gaming space has exceeded $300 billion.
This alone is enough to throw a spanner in the existing works of Epic and Apple, who are currently battling in a San Francisco court. Only because if Netflix enters the video gaming world, then consumers would have a choice of playing games with the benefits of a no-ad policy.
With many shows with titles based on famous existing or work-in-progress games such as the Resident Evil, The Witcher (one of the streaming giant’s most-watched show), Castlevania, Netflix indeed is entirely aware of the potential this could open up for itself with gaming. It may not be so outlandish to imagine that the streaming giant would not want to present its original series through newer games or make a game that finally becomes a new show.
Legend of the Rising Gaming Industry: Real or Fantasy?
Interestingly, Newzoo predicts the number of global gamers is poised to surpass the three-billion mark in 2023. So, if this turns out to be accurate, it will mean a compound yearly growth rate of 5.6 percent between 2013 and 2015. Though, many seem to question still how long or how much this new-discovered growing popularity is set to impact the production of video games. It might be challenging to predict the future, but is it out of the realms of possibility to think that the mobile market may change because of the increase in gamers.
Think with Google shares that mobile usage surpassed television viewing for the first time In 2020, which only indicates how smartphones have become the best go-to leisure option. And this opens up not just the window but the door to an array of future possibilities. It is unquestionable now how smartphones have mesmerized the casual players who previously could not afford consoles and the games so that the future trends may be leaning towards a more mobile-oriented vision.