If you ever wish to invest, wouldn’t you desire to do so in something that is ever-growing and promises massive potential? The gaming sector is no longer treated as just a hobby that children indulge themselves in. It has grown to be a mainstream phenomenon worth billions of dollars. Therefore, it is clear that the gaming market can never be volatile because it is rarely affected by economic turmoils.
The gaming market has seen wondrous innovations in the form of Augmented Reality, Virtual Reality, and blockchain technology being the latest one. With these technologies amalgamated with games, entrepreneurs can invest in the gaming market with their eyes closed. If you are confused about whether you should go all in or leave the opportunity, you have made the right choice to read this blog. This blog will clarify why you should invest in a gaming business.
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Let’s look at some of the numbers related to the gaming industry.
In 2024, the video gaming market has crossed 282 US billion dollars. It is speculated that the market size will grow at a rate of 8.76 percent in the next 3 years, eventually crossing the 350 billion dollar mark in 2027. According to Statista, in-game advertising holds the maximum share with a market volume exceeding 100 billion US dollars in 2024.
Some of the regions in the world reflect the enormous growth of mobile gaming. For example, the Japanese gaming market has grown to be the biggest mobile gaming market. UAE and other parts of Asia are also showing signs of capitalizing on the gaming market. It is expected that the number of users indulging in video games will reach around 1.5 billion by the end of 2027.
The gaming market is thriving, and the reason is not very complex. We see such a paradigm shift in populations migrating towards gaming, and the possible reasons could be:
One of the major reasons why the gaming market peaked in recent years is due to the most games being developed and optimized for smartphones. And the penetration of mobiles in the world has been higher than ever. You will rarely find a person in this world devoid of a smartphone. Due to high accessibility, players jump to the new experiences games offer.
Moreover, after the demand for immersive experiences, developers clubbed immersive technologies like AR and VR into their games which helped the audience resonate with the games more than ever. During the Covid-19 pandemic, people were stuck in their homes and had nothing to do, and most people got addicted to gaming. Although the pandemic affected many sectors, it adversely affected the gaming sector, and games are poised to become the most profitable business of the future.
Several factors prove that investing in the gaming business is a smart choice. The market provides a high return on investment, revenue streams are multiple, and the market is resilient to economic downturns.
Certain games that come under the casual game niche, like Angry Birds, do not require a lot of resources or a big budget. However, they have the potential to return humongous amounts. One of the best examples is Helix Jump, developed by Voodoo, a renowned hyper-casual game development company. The game crossed millions of downloads and provided Voodoo prominence in the gaming market.
The gaming sector is not limited when it comes to earning. There are multiple sources of earning from developing games. The traditional way is selling copies of the game, but we have come a long way, and models like in-game advertisements, and in-game purchases benefit businessmen more than through the traditional methods.
The gaming market is too resilient, and the pandemic supports this claim. At the time when all the other businesses and markets went to a low, gaming was the only sector that managed to give profits to the investors.
Games have the second-largest audience base after social media. And games have found their way on social media as well, there are many games that function seamlessly on social media platforms. Also, you can integrate your social media accounts into most of your games. Hence, the wide reach makes gaming one of the best sectors to invest in.
Since the gaming market is full of potential, it has become very saturated. Lots and lots of companies and entrepreneurs are investing in this domain. With a saturated market, new ideas or titles are only entertained if they promise potential. A lack of creativity in the idea gets thrown down the drain. Listed below are challenges that you might face before investing in the gaming market.
The investment required in the initial phase might overwhelm you as it requires the recruitment of a good game development company. Moreover, a huge chunk gets utilized in the marketing of the product.
The gaming sector brings in new trends rapidly and staying relevant becomes a task with so many competitors in the field.
Certain game niches like online poker, and other card games do not obey the regulatory guidelines of some of the countries. Hence, locations are limited where you can deploy these games.
If the team working on your project is not skilled and experienced, there are high chance that your game might face bug errors or performance issues in the future. Often known as technical debt, it is one of the biggest challenges in game development.
If you had made up your mind about investing in the gaming sector but reading about the challenges has made you skeptical, BR Softech is here to the rescue. You need not worry about the challenges, as the team at BR Softech will handle all the hard work and provide you with the best results.
BR Softech has experience in crafting games across genres including AAA games, Web3 Games, board games, sports games, and hyper-casual web3 games.
We rely on state-of-the-art technologies that include blockchain and Web3 to create a decentralized gaming ecosystem having credible transaction methods. HTML5 for hyper-casual and cross-platform games. We also leverage AR/VR to create highly immersive gameplays in AAA games.
We provide custom solutions for your gaming idea tailored to the region, culture, target audience, and business goals. The game’s contents developed by us are research-based and comply with our client’s requirements.
For an unmatched growth potential, you can invest in the gaming business. Although there are a few challenges, if you select the right game development company, those challenges can easily be tackled. Also, given the risks, the reward is too high if you manage your business strategically.
BR Softech can help you navigate through this complex landscape through its 13+ years of experience in the game development industry. Contact us today to turn your vision into reality.
Ans. Investing in gaming is a good idea because the market provides high returns on investments. The risk factor is low and the rewards are high given you apply good strategies in development.
Ans. Different revenue sources in gaming can include in-app purchases, in-game assets, subscription models, and more.
Ans. High initial costs, intense competition, requirement of technical expertise, and adhering to regulatory compliances are a few challenges that one should consider before investing in gaming.
