Real Estate Investing

Why There’s So Much Interest in the Gaming Industry

Up until 10-15 years ago, gaming was mainly associated with teenagers and geeks, but nowadays, that’s really not the case anymore. An increasing number of adults, even those who are married with children, are also getting hooked on gaming – and that’s a worldwide phenomenon. Not to mention, the sum of money spent on gaming per user is also on the rise. Quite surprising, isn’t it? If you ask me, the hype around gaming isn’t going to subside anytime soon – a good reason to consider investing in this field. With that said, why is there so much interest in gaming these days, actually? Here are some of my thoughts.

My name is Ofir Bar, a veteran investor with experience in varied markets all around the world. I am constantly looking for new markets to get into and diversify my portfolio, but I admit gaming didn’t interest me at first. Only after I had heard about the massive surge in the number of active gamers today (3 million, 150% more than in 2015), I realized I may be missing something. As a result, I dived into the reasons this industry is gaining momentum at such a pace, and now I will share my insights with you.

Lady gamer
Source: Shutterstock

Male monopoly no more

The most straightforward reason for the immense hype around gaming is engagement. As technology progresses, games are becoming more and more authentic and tangible, therefore it’s easier for people to get attached to them. Better graphics, artificial intelligence, and more options for self-expression inside the virtual world are making the difference. Now that we are on the verge of blockchain technology and metaverse gaming (engaging users even further), the interest in this market is not likely to be set back.   

Gaming, up until a decade or so, was mainly associated with the male sex, as a way for them to satisfy their hunter instincts from the comfort of their homes. That’s why there are so many games that are violent – or exploration-focused (or violent – AND exploration-focused. Why choose?). However, the male monopoly over gaming is nowadays losing its dominance. The ratio between male and female gamers is constantly shrinking, and it won’t be long till it’s 1:1 in the US and Asia. 

Mobile games have been with us for decades, way before smartphones emerged on the market. However, they started out as children’s pastimes, nothing more. Smartphones gradually changed that: Mobile games have become the no.1 ‘child silencer’ – but it didn’t stop there. Just hop on a bus or train, and behold: Fully-grown adults are passing their commuting times playing games on their phones, and even spending money on them! Good luck trying to grab their attention to ask a question. It’s absolutely crazy.

Blockchain technology
Source: Shutterstock

It’s true that the gaming industry has been gaining constant hype for quite a lot of years, but to get to the point it is now, it needed a major booster. This booster was manifested by the you-know-who: COVID. We were stuck in our houses for so long. Too long for social beings who crave human interactions. However, we had no choice. That’s why so many of us turned to gaming as compensation. Even after restrictions had been drawn back and life had gone back to normal, those who found comfort in gaming during lockdowns kept on playing. The habit stayed. 

Hybrid work made it easier for people to maintain their gaming routines. Saving commuting time on the roads, you see, doesn’t always make people more efficient. When you’re alone at home, it’s fairly easy to click the ‘Stream’ icon on your desktop and play for ‘just a half-an-hour’. You know how it goes.

Source: Shutterstock

Hop in before overdue

Truth be told, the gaming industry’s success is highly dependent on quickly-changing trends and the personal taste of users – which can take different directions quickly. For this reason, a gaming company that wishes to succeed these days must always be up-to-date with shifting trends. That said, the battle for purchasing gaming companies is raging. The big sharks are trying as hard as they can to get hold of promising smaller gaming companies: 

The gaming giant ‘Take Two’ recently offered 11 billion dollars to purchase ‘Zinga’, the successful mobile gaming brand. I believe they’ll find it hard to resist this deal. ‘Microsoft’, which has little to do with gaming, is making an effort to set a foothold in gaming by offering ‘Activision- Blizzard’ an astonishing 80 billion USD (!). If you ask me, they are definitely onto something.   

As I see it, something BIG is going on. Gaming, which has been considered for so long a pastime for boredom or unsocial people is, in my opinion, set to become as natural to people as going for a walk in the park. That’s why I think you should consider hopping on this train before it gets too crowded. 

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