Over the years, we have watched the video game industry grow to obscene proportions. Some games have been evolving into multimedia entities; Fortnite, to be exact, finds success not just in gameplay but the virtual events that draw in big-name artists. While publishers themselves continue to cook up new, exciting IPs, it’s the community that helps them thrive! This isn’t a new phenomenon, but 2020 gave people a reason to pick up the controller for the first time.
According to the NDP Group, known to track video game sales, the Nintendo Switch hit over 1.35 million units sold in the US in November. This includes both the regular Switch and the Nintendo Switch Lite. For 24 consecutive months, Nintendo maintains its record as the best-selling video game consoles. That is due, in large part, to the new gamers.
The console industry is close to generating $45 billion in revenue, reported market research firm Newzoo. Over 792 million players are diving deep into titles old and new.
Next-Gen consoles are responsible, too
New console releases always draw in sweeping profits. Still, the gaming train has been running at full speed before the PS5, and Series X arrived. Many gamers are still in a scramble to purchase a new machine. It’s a frustrating fight against shady retail practices and bots. This is business as usual. However, Newzoo predicts the market will exceed $200 billion at the end of 2023 because of next-gen hardware.
This will only get better once Microsoft, Nintendo, and Sony create a solid gaming eco-system. The console is very much a part of that. Microsoft is hard at work on this, so $200 billion may seem a low estimate.
Cloud Video Games are on the way
One tactic we will see paving the way for industry profits is Cloud Gaming. On Monday, December 14th, Ubisoft announced its gaming subscription service would add Google Stadia support. Publishers are looking into subscriptions to feed gamers content. In Spring 2021, Xbox Cloud gaming is set to arrive on PC and iOS thanks to the Xbox Game Pass Ultimate. It already exists for Android users. So, we can see the pieces all falling into place, although not with a singular shared goal. No longer will gaming be a strictly ‘at home’ activity. That’s a transformative move that guarantees longevity for gaming.
A big shout out to new gamers!
Video games are falling into the hands of people who may not have considered gaming before. In the face of COVID-19 related lockdown methods, the escape from reality became paramount for many. It’s no surprise that Steam and other internet services started breaking records. These numbers are unprecedented, and it’s all thanks to the community that exists in online gaming. It’s also fair to say immersive, single-player experiences are powerful enough to reel anyone in.
Escapism is my main reason for turning to video games. With accessible titles for all ages, from Animal Crossing to Pokemon, it’s easier now more than ever to get involved. This uptick in gaming may pause as people return to work, but there’s no denying that many will not end their new habits.