Business is about to get more profitable in the online game industry, as video game developers and publishers seek to grow their revenue to a $1 billion-a-year business by 2020.
The market is about $1.2 billion, according to research firm EEDAR, and the number is expected to grow to more than $3 billion by 2019, according the research firm’s latest estimate.
While the growth is welcome news for the industry, some are concerned about the impact it could have on the health of the gaming industry.
“I have no doubt that if we continue on this path, the health and well-being of the industry will be at risk,” said Kevin Boonstra, a senior partner at venture capital firm Founders Fund.
“There’s a huge opportunity here, but it’s going to be really challenging to see it work,” said Steve Loomis, a managing director at the game developer and publisher Ubisoft.
Loomis also pointed out that many video game platforms are now on the verge of being sold off.
“It’s going be a long and slow process, but there’s a good chance we’ll see it happen in the next couple of years,” he said.
“It could take a couple of decades, but the industry is going to have to make a lot more adjustments to survive.”
What are the main risks?
Boonstra and Loomas are concerned that video game sales could be driven by consumers’ willingness to buy more games.
“The biggest risk is people saying ‘let’s buy more,’ and they’re not necessarily getting it,” Loomiscs said.
“If you don’t have enough money, you’ll go buy games.
But if you’re in the middle of a recession, you’re not going to buy a lot of games, unless it’s a blockbuster.”
In that sense, it’s almost like buying a used car for the purpose of making a quick buck,” he added.”
We can’t just say, ‘Let’s just stop playing games.’
That’s not going do the industry any good.
“But even if consumers don’t want to buy games, they are already playing them, Boonres said.
Video games have become the fastest growing video game genre, with sales expected to top $1 trillion by 2020, according EEDar.
Boonras points to a study published in December by the Interactive Entertainment Association, a trade group for video game publishers, that said more than 30 percent of adults in the United States and Canada had played a video game during a two-week period.
The growth in gaming is due in part to the growing popularity of virtual reality, which makes playing games even more immersive.
A recent study by the research group Pew Research found that nearly half of Americans who own smartphones use virtual reality to interact with games, and more than a third of all consumers said they have played video games at least a few times during the past year.”
How to maximize your profits?”
But at the same time, it will take a lot to get people to embrace virtual reality.”
How to maximize your profits?
Boomers have become more engaged in gaming, as the gaming population ages.
“Millennials are a very diverse group of people,” said Loomisa.
“They’re more social, they’re more creative and they are increasingly interested in gaming.
I think that’s going help the industry grow.””
The game industry has always been the most profitable in America, but if you don’st make games and don’t grow, the industry won’t grow,” said David Rutter, a professor at the University of Texas at Austin.
“The growth of the video games industry has been driven by video game players.
They’re the one generation that have seen their entire family go online.”
Rutter also pointed to the video gaming industry’s growing popularity as a sign of success.
“You know, if you want to know what’s driving the future of the entertainment industry, you need to look at the gaming and entertainment industries,” he explained.
“There’s no other industry like it.”
How are video game companies going to survive in a world where consumers are willing to spend more money?
While the industry faces some challenges, it has a long way to go to reach profitability.
According to the research, the biggest risk for the video-game industry is that it will face “a major consumer backlash.”
“If you’re a parent of a child who has a PlayStation, Xbox or PC, the first thing you want them to know is that they’re playing video games,” said Rutter.
“And if they don’t, they can be very upset about it.”
But Boon, Loomiso and Lomis are hopeful that the industry can avoid that backlash.
“In a world of infinite choice,