The video games industry is still growing – but why?

The video games industry is still growing – but why?


Aug 25, 2023

Blog Information Technology The video games industry is still growing – but why?

To say video games are popular is an understatement. There are estimated to be around 3 billion gamers in the world. The video gaming industry is among the fastest-growing segments in the entertainment business, and BCC Research anticipates the market to reach a whopping $473.7 billion by 2027. No small numbers here.

Evidently, the video gaming industry is of enormous proportions. But staggeringly, it’s a trend that’s set to continue. There are several reasons video gaming is becoming increasingly popular – today, we’re diving into them.

Increasingly creative games designs

In 60 years, video games have evolved from interactions with simple geometric shapes to full blown cinematic experiences. Nowadays, games blur the lines between reality and fantasy. Graphics are becoming increasingly high-resolution, and as technology improves, so will visuals. Soon, loading screens will become a thing of the past, and transitions shorter and more fluid.

Over the next few years, video gaming hardware will experience major updates, allowing for more creative game design, more immersive graphics, and an enhanced overall experience. As technology improves, gamers will continue to invest in new games and consoles – and new gamers will also enter the mixer.

Video Games: Global Markets

The report dives into the market outlook for video games, providing five-year forecasting and a technology evaluation.

Video games used to educate

Gamification is taking place across countless industries, but the education sector is at the forefront. It makes sense – games are a natural way for students to fail, learn from failure, and try again until they succeed. Increasingly, video games are being used by teachers to deliver core lessons such as math and reading. New skills like computer programming are also being taught through video games.

Some key examples include MinecraftEdu, a version of the beloved Minecraft that teaches students mathematical concepts including perimeter, area, and probabilities, as well as foreign languages. SimCityEDU is another learning and assessment tool for middle school students, covering English, math, and other subjects in the Common Core State and Next Generation Science standards.

And of course… The metaverse

The metaverse is the other enormous force securing the ongoing growth of video games. The metaverse refers to technologies that enable people to be part of a connected digital world. A combination of the Greek word meta - meaning beyond - and the word universe, it is an extension of the real world. Real people use online games and apps to engage and interact with others in this 3D "world" where they present themselves as avatars. People can create items, sell or buy them, invest and reward others.

According to recent studies, more than 52% of US gamers believe that the metaverse can revolutionize the gaming industry. Some of the best Metaverse games that are worth playing are Axie infinity, Decentraland, Sandbox, Illuvium, Chain of Alliance, My Neighbor Alice, Krystopia, and Farmers World. But much of the technology to create a truly immersive, seamless, and lifelike metaverse is still a long way off. It may be years until the metaverse reveals its true impact on video gaming – but until then, we eagerly await this day.

Could anything get in the way of the industry’s expansion?

The video gaming industry appears almost unstoppable, but there are factors that could clamp the breaks on growth. Piracy, for example, is a chronic issue for video gaming companies. Piracy could likely cause severe financial damage to game developers, leading to decreased game variety and quality and, consequently, deteriorating platform sales.

Both Nintendo and Sony have combated this issue by creating a new model that prevents software modifications and by filing an injunction against a hardware system that is thought to help customers play pirated copies.

Although enjoyed among game fans, hacking and cheat codes can seriously damage the growth of the industry. Gamers are less likely to conduct microtransactions and purchases of downloadable content in video games if they have access to cheat codes that unlock new avenues and game features. This could result in lost revenues from paying customers or increased costs in developing technological response, either of which could negatively impact the market.

Discover more about the video gaming industry

The video gaming industry, although relatively new, has grown rapidly in the last few decades. Video games are not only considered to be a booming entertainment business but are expected to transform the way in which people interact. That’s why there’s never been a more vital time to get to grips with the nuances of the market – which is where BCC Research’s recent report comes in.

Consider becoming a member and gain access to the full catalog of reports in your chosen category. Get in touch today to find out more.

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    Olivia Lowden

    Written By Olivia Lowden

    Olivia Lowden is a Junior Copywriter at BCC Research, writing content on everything from sustainability to fintech. Before beginning at BCC Research, she received a First-Class Master’s Degree in Creative Writing from the University of East Anglia.

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