Video Game Industry Hits Reset In 2020
Gaming innovations are set to replace console gaming. The new gaming console releases from Xbox and PlayStation may be the last, as new ways of gaming make physical consoles obsolete. This article by Global X examines these changes, and what they might mean for gaming.
Consoles are currently the second-largest player in the gaming market, at 30 percent. To coincide with the new console releases are new games, which take advantage of the consoles' upgrades to deliver new experiences for gamers.
In the past, game developers have benefited greatly from new consoles upgrades. During the last console upgrade in 2013, for example, almost 20 million game sales occurred in just 5 weeks.
Despite the popularity and profitability of consoles, however, cloud gaming is set to take over the industry. Streaming games over the cloud is an extremely appealing form of gaming that businesses such as Microsoft, Sony, and Google are already developing.
In the future, cloud gaming could take the form of a subscription service, similar to the current Apple Arcade. Global X estimates that within the next 7 years, cloud gaming could deliver a gaming experience as good as console gaming, making it the preferred gaming option.
Another disruptive force in the gaming field is mobile gaming, which is currently the leader in market share, at 46 percent. Even popular games, such as Call of Duty, are beginning to take mobile form.
As gaming moves to the cloud, investment opportunities will continue to arise for savvy investors who want to keep up with these gaming innovations. Here are some investment ideas for investing in gaming.