28th Dec2022

The Digital Gaming Industry Is Becoming an Integral Part of the Economy at the Modern Stage

by James Smith

The origin of the gaming industry began in the 1970s immediately with the sale of the first computers designed for the mass consumer. A few decades later, the computer game industry has grown to such a scale that it has begun to outpace its closest competitors (the film industry and the music industry).

The peculiarity of the gaming market allows for the simultaneous existence of large companies producing high-budget blockbuster games (AAA-class games) and individuals creating their original games without any funding (indie games). In the modern world, the digital games industry is becoming an integral part of the economy. Find more details about this below.

The Digital Gaming Industry and the Impact of Its Components on the Economy

The digital games industry is considered a part of the economy-oriented market of software products for the organization of the game process or digital games. Its semantic content is determined by a digital game (on a computer, mobile device, game console, arcade game machines, etc.), which is both a specific product and an element of interactive entertainment.

The game industry is characterized by the different effects of its components on the economy. In particular, on the systems of production, distribution, exchange, and consumption. Therefore, features of the origin, emergence, and formation of the digital gaming industry, as well as the gradual strengthening of its influence, are important. Furthermore, the nature of the impact becomes narrowly specific to the economy if transmitted through the endemic sectors of the digital gaming industry.

E-sports

For example, e-sports impacts the economy through the following:

  • Bookmaking lines that offer a wide range of bets. Due to the coronavirus pandemic, almost all major sports competitions, except for e-sports, have stopped. Therefore, the main focus of bookmakers is on e-sports;
  • Sponsorship agreements in the e-sports industry;
  • E-sports competition. In particular, broadcasts on sports channels, e-sports mass media, prize funds;
  • Production of gaming computer equipment for e-sports tournaments and specialized sales of goods with symbols of e-sports teams and e-sports competitions.

Mobile, Console, and Tablet Gaming

Mobile, console, and tablet gaming and multiplayer gaming projects impact the economy through:

  • Economic browser games with the withdrawal of money;
  • Shops selling goods and virtual items;
  • Special gaming equipment. For example, telescoping smartphone controllers, gamepads, and PS5 console accessories;
  • Sale of branded products (bracelets, t-shirts, cups, etc.), implementation of theme parks, and large-scale video projects.

Online Slots

Online slots have also gained wide popularity over the last decade. According to Lucas Hurley, they attract players with good opportunities to win money, transparent conditions, and lucrative bonuses. CasinoHEX recommends checking these free spins bonuses for everyone fond of slot machines. Gambling opens up many economic opportunities. Online casinos provide thousands of people with jobs and career opportunities. People who start as dealers can grow into managers or similar leadership positions. Gambling establishments pay taxes. In addition, they fund charitable organizations and support many social initiatives to improve other people’s quality of life.

Multiplayer Game Projects and Cloud Gaming

Multiplayer game projects and cloud gaming affect the set of relationships that are formed in the system of production, distribution, exchange, and consumption through:

Advertising

  • Establishment of partnership relations;
  • Sale, lease, and use of data.

Streaming

Streaming impacts the economy through:

  • The streaming provider;
  • Establishment of partnership relations;
  • Advertising on streamer channels;
  • Donations (or money transfers users send to a streamer for the work).

Structure of the Digital Gaming Industry

The digital gaming industry includes the following:

  1. Production of equipment. The main condition for the existence of computer games is the availability of technical devices capable of creating controlled moving images;
  2. Development of software, platforms, and environments. Previously, computer games were created with the help of software code, but recently game engines have become more popular. They contain ready-made gameplay, mechanics, and elements. Their use significantly reduces the game development time;
  3. Game development. Having a ready game platform and special programs, developers create computer games based on their creative ideas;
  4. Publishing. Publishing companies are usually engaged in the sale of created computer games. The publisher’s task is to provide full material and technical support for the game development process;
  5. Marketing. The appearance of a new game must attract the attention of potential players. Various information channels (exhibitions, magazines, websites, television broadcasts, etc.) can be used for this;
  6. The consumer-gamer is simultaneously a source of income for the entire game industry, an appreciator of the creativity of developers, and a potential participant in other elements of the game industry.

What Trends Will Influence the Digital Gaming Industry Market Development in the Future?

Further growth of the digital gaming industry will depend on the following trends:

  • Increase in the number of smartphone and tablet users;
  • Further expansion of the Internet;
  • Increase in the number of professional online gamers;
  • Change in monetization model;
  • Distribution in social networks, search for a new audience;
  • Less use of the strategy of copying or developing analogs of successful games. Development of new unique concepts;
  • Increase in the time spent playing games;
  • Increase in advertising of game applications.

Conclusion

The gaming industry is not just an entertainment industry. It is a huge mechanism that affects the global economy, education, and culture. This wide toolkit is actively used by scientists, educators, psychologists, and even politicians. In a number of countries, games are officially recognized as part of the art and even act as e-sports disciplines. Therefore, the digital gaming industry is an integral part of the economy and life of a modern person today.

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