The Rise of The Gaming Development Industry

Introduction

For decades, videos games have been around and entertaining both children and adults. They have come a long way since the early days of video games and the very first editions of Nintendo and Atari. Pixelated screens and limited sound effects has now become a thing of the past, as video games are becoming more realistic than ever before. Video games are becoming more advanced as technology advances. Video game development has now become increasingly more complex, and the cost of developing a game to operate on one of the gaming platforms has continued to rise with this growing complexity. It used to be unimaginable to drain away millions of dollars into development costs, but games these days can cost dozens and even millions of dollars. The video game industry is tremendously large. In real sense, it is bigger than the music and film industries combined, and it is only getting bigger. Though it does not receive the same amount of attention as the film and music industries, there are more than two billion fans of the game globally. This equates to 26% of the global population.  It is the twenty-first century. According to the most recent survey, 83.96 percent of the total of world’s population owns smartphones, and seven out of ten young teens have access to personal computers or laptops. Many people have noticed an increase in the global population’s interest in video games. As per the Newzoo Market Report, the global gaming industry revenue increased to $137.9 billion in 2018, is expected to increase to $180.3 billion by 2021, and will increase to $198 billion by 2022. Mobile gaming generated the most revenue ($68 billion, or 45 percent), usually accompanied by console gaming ($47 billion, or 32 percent), and PC gaming ($35 billion, or 23 percent). In addition, according to a research study, mobile gaming market is expected to reach $95 billion by 2022, making up about half of total gaming revenue. Console gaming revenues are projected to be $61 billion, while PC gaming revenue is anticipated to be $39 billion.

Table of Contents

The Rise of The Gaming Development Industry. 1

Introduction. 1

What is Gaming Development?. 2

What Does a Game Developer Do?. 2

Rising Popularity of Gaming Industry. 3

The Growth of The Gaming Industry. 3

1. Asia and the Pacific. 4
2. The African Continent and Middle East. 4
3. Europe. 4
4. The Continent of Americas. 4

How Much Is the Game Industry Worth?. 4

What Factors Will Influence Video Game Development in the Future?. 5

The Bottom Line. 5

What is Gaming Development?

The craftsmanship of creating games is known as game development, and it incorporates the design, development, and release of a game. That might include creating a concept, designing it, developing it, experimenting it, and releasing it. When developing a game, it is critical to consider the gameplay mechanics, reward systems, player interaction, and level design. One of the most common computer activities is gaming. New technologies are constantly being developed to enable the development of more effective and much more impactful game play that can be operated in any standards-compliant internet browser. A big game development production company or a single person can create a game. It could be as small or as large as desired. It can be referred to as a “game” as long as it allows the player to engage with the content and manage the game’s characteristics. Game programming is the code that allows a video or computer game to be played. Programming has undergone a lot of changes with technology. Early in the history of video games, programmers were often in charge of taking care of development, as well as design. However, as hardware and software continued to improve and games have become more difficult and complicated, development teams grew significantly. Player expectations have risen as well, as well as more time is now ended up spending on focusing things likes high graphics and artificial intelligence to improve the user experience. New jobs have been created, and they are frequently more specialized, especially at larger gaming companies such as Ubisoft, Blizzard Entertainment, and Electronic Arts.

What Does a Game Developer Do?

Game developers, also known as video game developers, are in charge of creating and building computer games for PC, console, and mobile platforms. It is their responsibility to develop the base engine based on the design team’s concepts. They could also work on character design, world design, visual effects, and test automation. A games developer creates or programs games for a wide range of platforms, including console games, wireless applications, the internet, and mobile phones. They are involved in the game’s development at various stages. Most specialize in one or more fields, such as design, programming, visual effects, sound quality, editing, or production.

A game programmer, in essence, creates the code that allows a video game to be played. They collaborate closely with production companies and other departments (such as game design, art and visuals, audio, and so forth) to turn the project’s ambition into a fully functional, playable game. They could be in charge of everything from determining how fast a character runs and how high they jump to determining how many enemies appear and when, as well as how they react when attacked. It is important to keep in mind that there are several different types of software developers, so a developer may be highly specialized in one area vary according to the size of the production company and the scale of the task. For example, a sound developer who concentrates on associating specific sounds with events or activities, or an AI developer who determines how a non-player character will react toward the next move. A game developer’s typical job responsibilities may include:

• Putting the program’s ambition into code in order to produce a playable game
• Creating a unique base engine for the game
• Scripting features, events, and relations.
• Making up physics, for example gravity differences in a game set in space
• Creating and editing 3D graphic renders
• Modelling artificial intelligence in adversaries
• Adding sound effects, music, and voice-overs
• Putting features of the game and dynamics into action
• Developing the user interface
• Writing code that is specific to a keyboard, mouse, or game controller
• Making it possible for players to play or team up via local area network (LAN) or the internet
• Creating custom tools
• Code porting between platforms
• Algorithm implementation, memory requirements, and caching issues
• Detecting and correcting flaws
• Developing unique game concepts.
• Generating plot lines and scripting languages.
• Documenting every step of the game development process.
• Consultation with other game creators and relevant parties.
• Identifying additional visual and audio features.

Rising Popularity of Gaming Industry

For years, video games have progressively grown in popularity. And, as people seek new ways to socialize and entertain themselves even during global pandemic, the trend has only sped up. Gaming has grown to be a larger industry than film and sports combined. As per a report by market research firm SuperData, gaming revenue increased by 12% in 2020, to $139.9 billion from $120.1 billion in 2019.  It’s understandable that businesses want a piece of the action. The gaming industry already generated $155 billion in revenue in 2020. Analysts predict that just by 2025, the industry will be worth more than $260 billion. As a result, technology companies are attempting to enter this revenue stream. Google, Meta, formerly Facebook and Apple have all announced their intentions to enter the video game industry. Companies like Nintendo, Sony, and Microsoft continue to innovate in the game console space as the gaming industry changes over time. The market is gaining tech powerhouses such as Amazon, Apple, Facebook, and Google, all of whom have their own gaming products as well as offerings that extend gaming to the cloud.

The Growth of The Gaming Industry

Video game players have had more time at home to download and buy new games and consoles, among other things, because of their increased time at home. Last year, the video game industry significantly outperforms both movies and sports combined in terms of revenue. In fact, the gaming industry was valued at $162.32 billion in 2020 on a global scale. Based on the present rate of growth, it is expected to reach nearly $300 billion in the next five years. Each part of the world perfectly illustrates a different aspect of gaming’s success, each of which contributes to the gaming industry’s overall global growth.

1.      Asia and the Pacific

The Asia Pacific market generates the most revenue in the video games industry. As the Southeast Asian population is growing, so does the number of video game players. Mobile gaming, in particular, is growing as a result of free-to-play options. While esports is still a relatively new concept in Southeast Asia when compared to the traditional gameplay, it is rapidly becoming one of the most popular types of gaming. The amount of smartphone game players in Southeast Asia was expected to reach 250 million by 2021.

2.      The African Continent and Middle East

According to Forbes, the Middle East has emerged as a new leader in the video games industry, with regional total revenues expected to hit $6 billion this year. Similar manner to Asia Pacific, esports has become a very popular form of gaming in Africa and the Middle East. This is due in part to their younger generation and some of the world’s highest mobile application rates. The Middle East and Africa present a significant possibility for computer games because the combined region is home to one of the world’s most widely spoken languages: Arabic. With less than 1% of games localized into Arabic, there is a strong desire to expand the industry by developing and localizing games for the Africa and Middle East region.

3.      Europe

In 2020, gaming accounted for 3% of total revenue in Europe, with 51% of citizens participating. Over the last six years, revenue in all European countries directly implicated in game development, creation, or play has increased by 55%. The gaming industry is thriving throughout the region, with countries such as France, Germany, Italy, Spain, and the United Kingdom, among others, supporting gaming companies and developers who are constantly creating new games. The region is also home to some of the biggest names in gaming, including Tencent, Activision, Blizzard, Ubisoft, and Zynga. This growth in the number of games in Europe has resulted in people playing 8.6 hours per week on average.

4.      The Continent of Americas

The Americas, like every other region, had their greatest productive year of growth in the gaming industry. Particularly in North America, the industry is evolving as a result of technological advancements that improve computer games, such as augmented reality and virtual reality. Further to that, since the introduction of cloud gaming, the growth of online game players has nearly tripled by the middle of last year. During the lockdown, especially, more and more people turned to gaming, with three out of every four people playing video games. This contributed to the expansion of gaming in North America. South America has some of the fastest growing gaming markets, with users primarily playing online games, making up for a rise of global online gaming market. With the gaming industry’s explosive growth around the world, now would be the time for business owners to ensure that their games are widely available to everyone—regardless of what language they speak or what part of the world they live in.

How Much Is the Game Industry Worth?

The gaming market was accounted for USD 173.70 billion in 2021 and is expected to reach USD 314.40 billion by 2027, growing at a CAGR of 9.64% between 2022 and 2027. People are staying at home due to nationwide lockdowns imposed as a result of the COVID-19 pandemic, and some are turning to gaming platforms to kill time. Hundreds of thousands of new people who visit to website traffic are attracted by these platforms. Recently, computer gaming trends have seen a massive increase in both players and revenue. According to a Datareportal report, 4.88 billion people worldwide were using the internet in October 2021, accounting for nearly 62 percent of the total population of the world. According to the report, over 222 million new users have joined the internet in the last year. This has prompted the development of live game streaming as well as a number of accessible capturing and broadcasting tools. The amount of time spent viewing gameplay videos content has also increased dramatically. These games frequently cultivate creative content and competition, resulting in one-of-a-kind game mechanics moments that are purposefully shared and viewed by millions.

What Factors Will Influence Video Game Development in the Future?

The gaming industry has advanced rapidly over the last few decades. Video games are constantly evolving as a result of technological breakthroughs including such as 3D graphics, Virtual Reality, and Artificial Intelligence.  Gamers will soon realize more lifelike, fully immersive simulation models on screens and lenses as development teams start introducing new innovations, and they will be able to connect with others in new ways. People’s drive to create breathtaking experiences and increase their opportunities for social interaction and involvement will shape the future of video games.

The Bottom Line

The video game industry has always prided itself on its ability to innovate. Technological innovation, control mechanisms, and experiences are on the way. As the world spends more time on mobile devices, streaming services and mobile phone game playing will have become important revenue generators, and major tech companies might very well look to utilize their current structure to get involved. The changing demographics of video game players are perhaps the most intriguing transition in the video game industry. With more people playing games, demand for more interactive pleasure, and a desire for easier access to games, the video game industry’s future appears to be bright.