The gaming industry has had a striking impact on the global economy. With PlayStation 5s and Xbox Series Xs becoming increasingly common in every household, the eSports empire has seen a drastic rise in sales and production over the past few years. Not only that, but gaming has now shifted from being categorised as a hobby to an official profession. Gamers stream their progress on social media platforms such as YouTube and Twitch, and in result, do not only gain millions of followers but also earn millions of dollars.
A research study conducted by Deloitte in 2020 projected the eSports industry to have generated a whooping $1.5 billion in revenue, and reported creating opportunities for managers, players, and coaches in the industry. It has created employment opportunities for millions around the world, especially post the Covid-19 pandemic, where virtual tournaments, and eSports betting experienced an all-time high viewership. Sports brands have begun forming partnerships with gaming franchises to introduce their new products to the younger generation. For example, Nike partnered with FiFA 2023 to endorse their latest collection.
Gaming comes with software, hardware, and accessory requirements which has too had a significant impact on the economy. As a matter of fact, in 2020, MarketWatch reported hardware sales for gaming in the US reached $4 billion, software sales reached $38.4 billion, and accessory sales reached $2.1 billion. Moreover, popular games like Grand Theft Auto, Call of Duty, Minecraft, and Fortnite have generated billions of dollars in revenue, having sold as many as 110 million copies around the globe. Games have also introduced in-game purchases, one such example is Fortnite that generated a revenue surpassing $9 billion in 2018 alone. Safe to say, these numbers are out of the park for an industry that is often misinterpreted for being “of no use”.
A rise in the number of gamers around the world has certainly induced developers to advance their technology to the best possible versions of themselves. Be it graphics, mobility, accessibility, or providing users with immersive experiences, companies strive to be the best in the market. In fact, luxury technology brands such as Apple have entered the gaming industry as well, with the recent launch of Apple’s VisionPro- virtual reality goggles designed for luxury gaming, priced at $3500 a pair. Spending in this sector is only expected to increase, as suggested in a study by the World Economic Forum, which has declared that video games are “expected to grab a 10.9% share by 2026”, which is a 4.8% increase from 2017. Along with that, as per a PwC report, the industry is anticipated to be worth $321 billion dollars in just 3 years, which is nothing but a signal for a future spent gaming.
Conclusively, reports and financial studies anticipate positive growth in this industry with higher revenue generations, more job creations, and economic opportunities for streaming platforms. It has become a powerhouse in the global economy and will undoubtedly shape the future of entertainment, technology, and economic development.
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