Although the world is living in turbulent times with all the pandemics, inflation, and other global problems hitting us, businesses have huge opportunities to serve more people and make more money, as always. Here is the question – what businesses are we talking about?
People who are entrepreneurs or just investors always navigate with the factor of what’s important at the specific period and how popular it can be among future customers. For this article, we chose a field that has captivated millions of people worldwide – the gaming industry – which grows fast and gains significant amounts of revenue.
While someone more skeptical may be concerned with the future of the industry, seeing the heights is has already reached and perhaps, not seeing room for more growth, they would be missing the bigger picture. Millions of talented engineers and developers continue making incredible achievements on the tech front, despite the heights we are already standing at.
When analyzing the advancements of the last decades, there is an impression that all these achievements have been working in favor of gaming. The more technology creates amazing opportunities, the more the gaming industry benefits from it. When coming to the investment part, this is not just a game, this is a big game, and it offers extensive levels of revenue.
With that said, here are 4 solid reasons why you should invest in the gaming industry if you want to make some money.
People Play, and Not Just for Fun
Take a moment and think about this. From the business perspective, the best reason that can attract investors is the fact that people are attached to the product they put on the market. The number of people who actively spend time on mobile or video games reaches and even surpasses a billion.
But here is something more serious: people don’t play just for fun. For some gamers, it is a life path and a serious career. There are lots of competitions out there,in which professional gamblers compete for prizes. Beginner gamblers, on the other hand, play for money, and you know that this is a good, I mean, a really good reason. On top of the usual gaming opportunities, there are online casinos, where gamers indulge in the classic blackjack game for sizeable crypto rewards.
Another big portion of the gaming industry belongs to electronic sports. While there are some debates about whether it should be called sports or not, don’t bother yourself with those conversations and make the investment decision, and you will make good money if you work smart, regardless we call those games sports or not.
To eliminate all the potential doubt regarding credibility of E-sports in particular, we can take a look at some of their most sizeable and notable achievements. Based on the multitude of statistics and data, we can observe that DOTA seems to be a well-established force in the industry, with the tournament prize pools reaching as high as 40 million USD. Obviously, people are invested in these competitions, and are willing to take the time out of their day to observe.
While DOTA is a team game, E-sports has also had some impressive single tournament earnings for individual players, often surpassing the 5 million USD threshold. On top of all this, the league is very diverse, and includes games from many different genres and styles, from sports based ones like Rocket League, to fighting games such as Tekken or Mortal Kombat. Due to this, the E-sports umbrella engulfs most gamers and their unique tastes.
Despite these positives, one would still have to invest carefully, and ideally in the genres already well established, such as team competitions like DOTA od League of Legends. There are plenty of success as well as failure stories in the game, and you should always exercise caution when investing.
The Power of Human Resources:
One compelling reason to invest in the gaming industry lies in the abundance of talented individuals seeking opportunities. The continuous growth of the industry has created a rich pool of developers and professionals who are looking for job opportunities. This is a great chance for businesses, as they can find quality professionals worldwide. Moreover, hiring freelancers is another option that can be considered.
Let’s talk with numbers – over the past five years, the number of game development graduates has doubled, reflecting the popularity of the profession and the young generation’s desire to enter the gaming industry. Furthermore, the advent of remote work and freelancing has broken geographical barriers, enabling businesses to recruit top-tier developers from any corner of the globe.
Look at these opportunities from the perspective of a great working environment, which is crucial in the development of any product. Having a wide selection of professionals and creating a diverse team, speaks about good chances to code the game of people’s dreams.
Hell, with how good programming languages have gotten, you even have indie, solo developers creating incredible projects from scratch from their bedrooms. Games like Amnesia, Undertale, and Hollow Knight are all considered Indie games that did extremely well on the market. In addition, arguably the most popular videogame of all time, Minecraft was developed solo by a Swedish programmer Notch.
Considering all of this, the competition and the barriers of being successful in the industry as a developer will only get tougher, leading to these talented people pushing their boundaries and limits, and continuing to help expand the industry, naturally leading to many more investing opportunities.
The Promise is In the Horizon:
Investing in the gaming industry promises an exciting journey fueled by technological advancements. Technologies such as virtual and augmented realities, cloud gaming, and artificial intelligence are reshaping the gaming landscape, opening doors to unique opportunities for investors to build their immersive gaming empires.
It’s enough to look deep into this development picture, and you can come up with some game-changing ideas. Our suggestion would be to concentrate on innovation although it will require more money to invest. For example, it’s not promising to start a whole business in the mobile gaming industry. Of course, the business can grow fast, but what if you move a step forward and think of immersive experiences? The biggest tech companies like Apple, Meta, and Google have already put their stakes on the new type of reality, so go with that and try to reach the peak of the pyramid.
Virtual reality has already been successfully implemented in the industry for many years, with the only thing holding it back in the eyes of the consumer being the price. VR headsets offer an unforgettable experience in the vast and magical world of gaming, an experience that will only get better and more accessible with time. It is definitely worth considering as a potential option for investing.
A big elephant in the room though, is of course AI. As Artificial Intelligence gets more and more accessible, as well as developed, many predict it will bring crucial changes to the gaming industry. Video games have always prided themselves on being an interactive medium, though still being in the shackles of pre-coded options chosen by the developers.
Ai has the genuine potential of breaking these shackles, and making the games truly dynamic and fully intractable. It can be completely revolutionary, which obviously would make the industry even more profitable and massive. All things to consider as a potential investor.
Monetization Flexibility:
The gaming industry also presents unparalleled flexibility in terms of monetizing games. Unlike traditional entertainment sectors, gaming allows companies to explore diverse formats and revenue streams to boost their profits.
One of the most convenient monetization methods is in-app purchases. This option allows players to make small in-game purchases, for new experiences or bonus points to unlock new levels of the game. Of course, these so-called micro transactions are often the subject of many criticisms, but as long as the product offers a complete experience without the said purchases, it is all fair game.
Hell, some of the most popular games of all time are entirely dependent on this system. Think of Fortnite, a free yet highly profitable, incredibly successful game due to its use of micro transactions. They only offer the cosmetic options, disengaged form the actual gameplay and not offering any unfair advantages in the field that matters most.
Don’t forget about cryptocurrencies, which have opened fresh methods for monetization within the gaming realm. Games integrating blockchain technology now enable players to trade and sell in-game assets using digital currencies, which makes the transaction more secure and faster. Having alternative means of payment is one of the most important factors for companies.
Additionally, advertising and sponsorships play a crucial role in game monetization. Many games integrate advertising within their content or implement strategic partnerships with brands to promote their products. Not only this, but we often seen games partner up with individual influencers and content creators, opening themselves to completely new audiences.
As you can see, the promising gaming industry is waiting for any investments ready and open-armed. As mentioned, while the industry is highly profitable, one should still excersise caution and stay sharp while making crucial decisions.
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