Thursday, July 21, 2016

Week 2 EOC: Boston Consulting Group - Video Games

The gaming industry as a whole is now soaring since the slow times of 2009. The options of games are everywhere, and people are playing. Market research firm, Newzoo is expecting the gaming industry to reach 100 billion in 2016. Newzoo reports, "Forty-seven percent of that $99.6 billion will come from Asia, as you can see in the chart below. China is seeing exceptional growth. Mobile in that country will be up 41 percent from 2015 to reach $10 billion. Newzoo notes 58 percent of total gaming growth in the worldwide market in 2016 will come from the Asia-Pacific region"(Minotti). Mobile clearly has only seemed to have gotten stronger with the release of Pokemon Go as well. Another reason for growth is the transparency companies are giving their customers. Players can now have more input than ever while games are being made. “Live-streaming from the office is hard to do, but it’s really powerful. Think about Vlambeer – they stream all their development online. They’ve got something like 12,000 subscribers who are paying a monthly fee to access that stream – that’s a huge amount of revenue on its own, but then they’re also interacting closely with their audience in real-time,” – says Todd Harris of Hi-Rez studios (Labrien). So the gaming industry is finding new ways to both generate revenue, and improve their gaming to increase sales. The gaming industry seems to be only getting larger and larger, and I don't see it slowing down anytime soon. 

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