The video gaming industry has seen explosive growth in the recent years especially with the rise of competitive gaming and streaming. Companies such as Activision Blizzard and Amazon’s Twitch already have shown proof of concept of eSports. eSports already brings in millions of online viewers, generating millions in revenue through ads, sponsorships, and media rights.
Statistica reports that the current eSports market has brought in 906mn USD worldwide. This does not include related video game, console, accessory or any other related sales. Statistica also reports that eSports will draw in 380 million viewers this year, up from 335 million total viewers last year.
The attention that eSports has bought to video gaming has helped the industry recover and see larger growth in the last two years. Consumer spending has rose from $23.5 billion in 2015 to $30.4 billion in 2016, a 22.6% increase. In 2017, spending rose again by 15.5% to $36 billion, with growth primarily in the content sales division.
The video game industry has seen its greatest growth thanks to innovations in technology such as the gaming console and online gaming. We’ve seen massive growth in companies such as Microsoft, Sony, and Nintendo who have created the popular Wii, Xbox, and PlayStation consoles.
Companies like Activision Blizzard (NASDAQ:ATVI), who’s market cap is just over $60 Billion and Take-Two Interactive Software (NASDAQ:TTWO), market cap of $15 Billion control much of the market share in the gaming industry.
But, Epic Games’ newest sensational hit Fortnite has lifted competitive gaming to an all-time high. Fortnite has just topped 140 million downloads worldwide since the launch of the third-person shooting game. The new Battle Royale concept has struck other huge game makers to produce their own Battle Royale versions.
Electronic Arts (NASDAQ:EA) saw a hefty 9% drop after the company announced they are pushing back the release date of Battlefield V, which has it’s own version of a Battle Royale. Activision Blizzard (NASDAQ:ATVI) saw an opposite reaction by receiving a 7% price jump after pre-sales of the new Call of Duty Black Ops 4 (which features it’s own Battle Royale: Blackout) skyrocketed last week.
There is a new form of gaming rising, which is starting to become more advanced and more affordable to consumers; Virtual Reality. Virtual reality is a new form of gaming where the user feels like they are in the game through using advanced tech such as video glasses/goggles.
In the past, virtual reality has lacked accessibility to the ordinary consumer due to the high cost of hardware and the limited number of companies developing games for these consoles but some industry leaders such as Sony have rolled out their own VR hardware and games with affordable prices and wide-variety of games.
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