How 2022 Will Impact the Future of Gaming Industry
In the past two years, the gaming industry has witnessed unprecedented growth. Part of this development has been driven by innovative technologies, increased smartphone users, and the most recent Covid-19 pandemic.
The lockdowns and restrictions that characterized the pandemic provided the perfect opportunity for many people to turn to virtual gaming as a form of entertainment. For instance, players who frequented land-based casinos before the pandemic had to switch to online versions, like online casino Singapore, to enjoy their favorite games.
The pandemic also accelerated gaming trends in the industry. For instance, many gaming companies have now implemented VR and augmented technology in their games. Similarly, casino game developers have introduced games such as Sexybaccarat that make the thrill of playing in a land-based casino a reality for online players.
And as we look towards the future, here are more key developments likely to impact the gaming industry in 2022 and beyond.
Table of Contents
1. Gaming as a Source of Social Connection
Gaming has become increasingly popular in the past few years, especially among young people. Part of this is due to positive change experienced around the stigma surrounding gaming.
Besides, during the pandemic, more young people engaged in video gameplay not only for entertainment purposes but also as an avenue for social connection.
Today, for most young gamers, online gaming provides the perfect platform for social interaction. In a recent survey conducted by Morgan Stanley, more than a quarter of the under 35 surveyed gamers admitted that gaming is a better social connection avenue than social media platforms.
2. Mixed Monetization Strategy
In addition to retail sales, gaming companies are looking for more ways to grow their revenue. This is why we are seeing new monetization trends in the industry.
For instance, many games offer rewards such as vouchers, gadgets, and coupons to their customers to increase revenue.
Additionally, many players in the industry have embraced cryptocurrency and NFT games, all in a bid to attract more customers.
Other game monetization trends we expect to see being used in the gaming industry in 2022 include:
- In-App ads
- Meta layers
- Paid games
- In-App purchases
3. The Dominance of Mobile Gaming
Due to the increased adoption of smartphones, mobile gaming will continue to dominate the industry in 2022.
According to a Newzoo report, mobile gaming has continued to outperform console and PC as the biggest gaming platform since 2017. Moreover, in 2020, almost half of all gaming revenue was from mobile.
Mobile games such as Honor of Kings, Apex Legends, PUBG: Battlegrounds, and Call of Duty Mobile have become massive hits, and this trend is expected to continue even in the future.
4. Subscription Gaming
One of the business models in the gaming industry expected to grow in 2022 and beyond is subscription gaming.
Most gaming companies prefer this model because it provides predictable revenue. Subscription gaming also enables gaming businesses to reward their customers with their favorite products.
For the past few years, Microsoft has been the dominant player in subscription gaming. However, this is changing as players such as Nintendo and Sony have beefed up their subscription perks.
5. High Competition
As the gaming industry grows, new entrants are joining the market. The result is high competition and innovativeness in technology and business models.
Further, advancements in gaming technology will continue bringing down barriers to entry, leading to more new players in the industry.
In 2022 and beyond, we can expect to see more competition in the blockchain gaming scene. Investors should also get ready to see extensive advertising and branding spending from players who want to cement their position in the industry. Some forms of advertising that are bound to gain more prominence in the next few years include social media marketing, outreach programs and influencer marketing.
In closing, the gaming industry looks promising. Players in the industry can expect to continue experiencing mobile gaming dominance, subscription gaming growth, and intense competition and advertising. Gaming is also evolving and becoming more than just a source of entertainment as industry players also increase efforts to diversify their sources of revenue.
