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Trends in the Gaming Industry in 2024: Developments and Investments

The gaming industry is growing at a fast pace attracting more and more developers and investors. New technologies and the increase of the number of gamers contribute to the growth of the industry. The COVID-19 pandemic accelerated the adoption of subscription models for gamers. We are witnessing an increase of interest in home entertainments, the demand for new games, and a growing number of affluent investors attracted to the gaming industry.   

The future of the gaming industry

The desire for interactive content in the games has also been growing, which contributes to the development of the gaming industry too. Software developers offer games that can be improved and extended via the Internet. In 2024, the number of gamers is expected to continue growing and more companies are going to apply sustainable business models.

Subscription model for gamers

Models built on subscription are changing the gaming industry substantially. Recent examples include Xbox Game Pass from Microsoft and Google Stadia. These products offer consumers access to multiple games for a fixed price. This allows users to explore new games without paying any extra money. The developers, in their turn, have a stable income. New games attract many users, which allows accumulating profits and investing them into further growth. Modern technologies allow the developers to analyze the preferences and the behavioral patterns in the gamers.

Users benefit from wide access to games and regular updates. New models make games cheaper, which enlarges the gamers’ audience. The subscription strategy also helps maintain constant interest in the platform and ‘ties’ the client to it. Experts believe that the subscription model is going to be applied by a larger number of game developers in the nearest months. This means that investments in this area can be lucrative.  

The subscription model is becoming widespread thanks to the following factors:

  • Enlargement of the business and domination of corporations;
  • A growing number of new applications;
  • Demand for role plays on behalf of the clients;
  • Priority of a stable income for game developers and investors.

Investments in augmented and virtual reality

Augmented reality (AR) and virtual reality (VR) are actively developing in the gaming industry. These technologies allow immersing in the virtual world while increasing interactivity and realism of the experience. Analysts believe that AR and VR are going to play a key role in the future of the gaming industry. Many large companies and affluent private investors are already putting money in AR and VR technologies. For instance, Facebook has invested in Oculus VR and Sony has purchased SoftKinetic, a company specializing in manufacturing VR helmets. The investments are aimed at developing new products that are going to change the understanding of the gaming process. If you are interested in entering this business area too, our experts will be delighted to help you open an account with a British payment system.

AR

The number of AR and VR gaming applications is growing fast. The developers are testing new uses of the technologies that would allow creating brighter emotional experiences and deeper feelings in gamers. AR and VR-based games are sure to grow in number in the future. This fact will bring new opportunities to gamers, game developers, and investors. It is expected that business incubators and HNWIs are going to increase investments in the AR and VR technologies and the gaming industry in general. The AR and VR markets are expected to grow to US$ 72.8 billion by the end of the year.  

Mergers and takeovers

Several mergers and takeovers took place in the gaming industry in 2023. For example, Microsoft Corporation bought Activision Blizzard for US$ 68.7 billion. The takeover strengthened the position of Microsoft in the gaming market segment. Now 368 million active users have access to a large game portfolio. The merger also has made Microsoft’s competitors including Sony and Tencent change their business strategies. The companies are putting more effort into development of their gaming services.

Integration of corporations leads to increased competition for users’ attention in the gaming market. This fact pushes various innovations and adoption of new strategies.

Large-scale mergers and takeovers have a lasting impact on the market changing not only its structure but also the approaches to monetization, game development, and marketing. These tendencies open new prospects for growth and development in the business sector. Questions also arise about the domination of large players and the consequences for innovative approaches.

The main reasons for mergers and takeovers in the gaming industry include the following ones:

  • Interest on the part of corporations and affluent individuals who are ready to invest into the development of the industry;
  • Need for larger investments;
  • Fast growth of the number of services and applications;
  • Emergence of new approaches to monetization.

Growth of mobile gaming

Mobile gaming is growing in popularity. Profits are expected to grow in this sector too in 2024. According to experts’ forecasts, the global income from mobile gaming applications is going to reach US$ 189.5 billion by the end of the year, which is 10% more than the year before. The dynamics is attributable to the improvement of smartphone technologies. Modern devices are capable of supporting games with advanced graphics and sound effects. Increased performance and quality of the screens makes mobile entertainment more appealing to the target audience.

Mobile gaming

The growing functionality of smartphones also makes developers come up with new gaming solutions. Integration of AR and VR technologies into mobile devices open new horizons for gaming applications. The innovations improve the customers’ experience and allow the developers and investors’ profits to reach 15% per year. At the same time, competition in the sector is also growing.

The main reasons for fast developments in the mobile gaming sector include the following ones:

  • An increase of the overall number of smartphones in the world;
  • Support of advanced mobile applications;
  •  Integration of AR and VR technologies;
  • Expansion to developing countries.

Prospects of the gaming industry in India

The Indian online game market demonstrates a record-breaking pace of growth and offers attractive opportunities for foreign investors. In 2023, the market reached US$ 3.1 billion in India. According to forecasts, it may reach US$ 6 billion by 2028. The dynamics is attributable to the growth of the number of smartphones in the country, improvement of the local Internet services, and a growing number of young people in India. The development of national gaming content is also a contributing factor.

Lumikai Foundation has invested more than US$ 50 million in Indian gaming startups. This fact certainly contributes to the growth of the local gaming industry. The investments allow the startups to develop innovative gaming products and attract large numbers of users. However, a foreign investor has to take into account potential challenges associated with the Indian regulatory environment and cultural specifics of the market.

Notwithstanding some potential risks, the Indian market remains attractive for foreign investors in online gaming applications. Investments into the Indian gaming industry can bring substantial profits if everything is done correctly. A foreign entrepreneur has to think strategically when choosing investment projects and take into account the present tendencies and the preferences of the end users. In the long term, the Asian gaming market is going to become more profitable and we suggest that you should open a corporate bank account in this part of the world.

Conclusion

In 2024, the gaming industry is growing fast especially in the sectors of mobile gaming applications and AR/ VR technologies. The developers spend a lot of effort on creating new mobile applications and improving the users’ experience. Experts recommend following market dynamics in light of major mergers and takeovers. Understanding the trends will let you develop business strategies that can ensure long-term success and innovations. The gaming market is expected to grow rapidly in the near future.

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