2024 Gaming Industry: Trends and Investments

More and more developers and investors from across the globe are attracted by the opportunities of the gaming industry. It is growing at a fast pace thanks to two factors: an increasing number of gamers and new technologies that are being implemented. The pandemic years have contributed to the industry as the subscription models became more widespread than before. People want new games and show more interest in home entertainment, which explains the influx of major investors to the gaming sphere. In fact, it is becoming a promising investment opportunity not to miss!

There is one more thing that stimulates the development in the sector: there is a growing demand for interactive content. In response to that, game developers offer games that users can improve and extend, which adds a lot to their appeal. 2024 is expected to be a year of active gaming industry growth, with more companies relying on sustainable business models.

Subscription Models

Subscription-based models (Google Stadia or Microsoft Xbox Game Pass) are considerably changing the gaming landscape as gamers can access a package of games at a stable fee. As a result, they can see whether they like some new games without paying extra money. This model turned out to be profitable for developers, too, as they have a reliable source of income. There are a lot of users coming to try new games, which helps to raise funds and invest them in further company growth. Present-day technologies can help developers analyze gamers’ typical behavior and preferences. 

Users really appreciate unlimited access to different games and updates on a regular basis. The audience of gamers is becoming considerably wider as the games are offered in a package at a more affordable price. The subscription also makes sure that the gamer is constantly focused on the platform. Experts say that many companies may switch to the subscription model in the coming months, which means that investments in this industry would be a wise step.

Here are the main factors that contribute to the subscription model's popularity:

• Game developers and investors opt for a stable source of income.

• Customers want role plays on their behalf.

• The number of new applications is on a constant increase.

• Businesses are being enlarged, with the corporations dominating the landscape.

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Augmented and Virtual Reality As An Investment Sphere

AR and VR are important components of the gaming industry, and they are rapidly developing. As you immerse into the virtual realm, your experience becomes more real and interactive, which cannot but attract people. According to experts, these technologies are going to be key components of the gaming industry in the near future, which is the main reason why we see an influx of investors interested in this field. Sony’s acquisition of SoftKinetic (a VR helmet manufacturer) and Facebook’s investment in Oculus VR are just two examples that illustrate the trend. Far-sighted investors strive to organize the development of new products that are expected to change the whole gaming landscape.

We are now witnessing the appearance of more and more gaming applications based on AR and VR technologies. Developers are attempting to give users deep feelings and a memorable emotional experience. The number of AR/VR games is bound to increase, which means that investors, developers, and users will have more opportunities, and the amount of investments in the sphere is going to increase. 

Mergers and Takeovers

2023 was the year when a few important mergers and takeovers took place. To illustrate, Activision Blizzard was acquired by Microsoft Corporation, which strengthened the latter’s position in the gaming sector. As a result, access to a considerable game portfolio was granted to 368 million users. 

Microsoft’s strong competitors, Tencent and Sony, had to modify their business strategies following the merger. The companies’ efforts aimed at gaming services development have increased substantially.

As the corporations unite their efforts, the competition for the users’ attention in the market becomes ever-increasing. This stimulates the creation of new strategies and the implementation of various innovations.

Major takeovers and mergers have a considerable influence on the industry landscape and change not only the market structure but also the marketing approaches, game development, and ways of monetization. These are challenges that bring about new growth and development opportunities to the market. 

Here are the main reasons why we see mergers and takeovers:

• Companies adopt new ways of monetization.

• The number of apps and services is growing exponentially.

• The industry needs more serious investments.

• Corporations and HNWIs are interested in the industry and want to invest in it.

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Popularity of Mobile Games

Mobile games are becoming a more and more popular means of entertainment, which means that profits are expected to increase considerably in 2024. Experts predict a 10-percent growth in income from mobile games compared to the previous year due to improved smartphone technologies. The devices that are now in use are suitable for games with advanced sound effects and graphics. As the screen quality and performance are getting better, mobile games acquire more appeal for the users.

Enhanced smartphone functionality and AR/VR integration in the devices also means that developers can offer new gaming solutions to users. As a result, gamers get better customer experience, and the profits from the industry yield investors 15% a year. However, we should also note that the competition is becoming fiercer.

Here are the main factors behind fast mobile game industry growth:

• Entry into the market of developing countries

• AR/VR technologies integration

• Support of state-of-the-industry mobile apps

• A growing number of smartphones across the globe.

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Conclusion

2024 is the year when the gaming industry is expected to grow at an impressive speed, especially if Augmented and Virtual Reality technologies are at play. Mobile apps are also seen as a promising sector where the increase will be tangible. Developers are doing the best they can to enhance user experience and create new mobile apps with more interesting opportunities. Experts recommend looking at large-scale mergers and takeovers as they reliably indicate market trends. If you know where the market is going, you can elaborate successful business strategies to help your company grow. And if you are an investor, we strongly recommend taking a good look at the gaming industry.