The trends and innovations in the gaming industry and their implications for society

12 min readJul 29, 2023

(The author of this article is Archishman Satpathy, Founder and CEO of The Exploring Minds, Edited by Anjali Singhvi.)

The gaming industry is one of the most dynamic and creative sectors in the world, constantly evolving and adapting to new technologies, consumer preferences, and market opportunities. According to Newzoo, the global games market is expected to generate $189.3 billion in revenues in 2021, a 7.7% increase from 2020. The industry is also projected to surpass $200 billion by 2023, driven by the growth of mobile, cloud, and immersive gaming.

Cloud gaming

Cloud gaming is an important trend in the world of gaming technology. The gaming world before cloud gaming required gamers to buy expensive hardware such as consoles or PC GPUs to play high-quality games. However, with cloud gaming, gamers can stream games from remote servers over the internet, eliminating the need for physical devices and storage space.

Cloud gaming offers several benefits for gamers, such as:

Access to a large library of games on demand.
Ability to play games on any device, such as smart TVs, smartphones or tablets.
Reduced latency and improved performance.
Lower costs and environmental impact.

Cloud gaming also opens up new opportunities for game developers, publishers, and platforms, such as:

Reaching a wider and more diverse audience.
Offering more flexible pricing and subscription models.
Leveraging cloud computing power and scalability.
Experimenting with new genres and formats.

Some of the leading players in the cloud gaming market include Microsoft (xCloud), Sony (PlayStation Now), Google (Stadia), Nvidia (GeForce Now), Tencent (Start), and Amazon (Luna). According to Grand View Research, the global cloud gaming market size was valued at $1.15 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 47.9% from 2020 to 2027.

Virtual reality (VR) and augmented reality (AR)

VR and AR are immersive technologies that enable gamers to experience games in a more realistic and interactive way. VR creates a fully simulated environment that surrounds the user, while AR overlays digital elements onto the real world. Both technologies use devices such as headsets, controllers, sensors, and cameras to track the user’s movements and actions.

VR and AR offer several advantages for gamers, such as:

Enhancing the sense of presence and immersion.
Enabling new forms of storytelling and gameplay.
Providing more personalised and customised experiences.
Supporting social interaction and collaboration.

VR and AR also have various applications for other sectors and domains, such as:

Education and training.
Healthcare and wellness.
Entertainment and media.
Tourism and travel.
Retail and e-commerce.

Some of the prominent examples of VR and AR games include Beat Saber, Half-Life: Alyx, Pokemon Go, Minecraft Earth, and Star Wars: Squadrons. According to Statista, the global VR/AR market size was estimated at $18.8 billion in 2020 and is projected to reach $72.8 billion by 2024.

The metaverse

The metaverse is a term that describes a shared virtual space that connects different digital worlds, platforms, and communities. The concept of the metaverse was popularised by science fiction novels such as Snow Crash and Ready Player One, where people can interact with each other through avatars, explore various environments, create content, play games, shop, socialise, and more.

The metaverse is not a single product or service, but rather a vision of what the future of the internet could look like. Some of the key characteristics of the metaverse are:

Persistent: The metaverse exists continuously, regardless of whether users are online or offline.
Open: The metaverse is accessible to anyone with an internet connection and allows interoperability between different platforms.
Scalable: The metaverse can accommodate millions of users simultaneously without compromising quality or performance.
Live: The metaverse is constantly updated with new content, events, and features based on user feedback and preferences.

The metaverse is still an emerging phenomenon that faces many challenges, such as technical complexity, standardisation, regulation, privacy, and security. However, many companies are already investing in building or supporting the metaverse, such as Facebook (Horizon), Epic Games (Fortnite), Roblox, Microsoft (Minecraft), Niantic (Pokemon Go), and Decentraland.

Blockchain and non-fungible tokens (NFTs)

Blockchain is a distributed ledger technology that enables secure and transparent transactions without intermediaries. NFTs are unique and indivisible digital assets that are stored and verified on a blockchain. NFTs can represent anything from art, music, videos, collectibles, in-game items, virtual land, and more.

Blockchain and NFTs offer several benefits for gamers and game developers, such as:

Enabling true ownership and control of digital assets.
Creating new revenue streams and business models.
Enhancing the value and scarcity of digital assets.
Fostering a more engaged and loyal community.
Promoting innovation and creativity.

Blockchain and NFTs also have implications for other industries and sectors, such as:

Art and culture.
Sports and entertainment.
Fashion and design.
Education and research.
Social impact and sustainability.

Some of the notable examples of blockchain and NFT games include Axie Infinity, CryptoKitties, Gods Unchained, The Sandbox, and NBA Top Shot. According to NonFungible.com, the total sales volume of NFTs reached $2.5 billion in the first half of 2021, up from $13.7 million in the first half of 2020.

eSports

eSports are competitive video games that involve organised tournaments, leagues, and events. eSports can be played by individuals or teams across different genres, such as first-person shooters (FPS), multiplayer online battle arenas (MOBA), real-time strategy (RTS), fighting, sports, and more.

eSports offer several benefits for gamers, such as:

Providing a platform for showcasing skills and talent.
Offering opportunities for professional development and career growth.
Generating income from prizes, sponsorships, endorsements and streaming.
Enhancing social interaction and networking.

eSports also have various impacts for other stakeholders, such as:

Game developers and publishers: eSports increase the popularity and longevity of games, as well as generate additional revenue from in-game purchases, advertising, and licensing.
Media and entertainment: eSports attract large audiences and viewership, creating demand for content creation, distribution, and consumption.
Brands and sponsors: eSports offer a way to reach and engage with a young, diverse, and global demographic, as well as enhance brand awareness and loyalty.
Education and health: eSports can promote cognitive, physical, and mental well-being, as well as foster skills such as teamwork, communication, problem-solving and critical thinking.

Some of the most popular eSports games include League of Legends, Dota 2, Counter-Strike: Global Offensive, Fortnite, Overwatch, and Call of Duty. According to Newzoo, the global eSports market is expected to generate $1.08 billion in revenues in 2021, a 14.5% increase from 2020. The industry is also estimated to have 474 million viewers in 2021, up from 436 million in 2020.

Artificial intelligence (AI) in gaming

AI is a branch of computer science that aims to create machines or systems that can perform tasks that normally require human intelligence. AI has been used in gaming for decades, mainly for creating non-player characters (NPCs) that can interact with players or the environment.

However, AI is also advancing in other aspects of gaming, such as:

Procedural content generation: AI can create or modify game content automatically or semi-automatically based on rules or algorithms.
Adaptive difficulty: AI can adjust the game’s difficulty or challenge according to the player’s skill level or preference.
Personalization: AI can tailor the game experience or content to the player’s profile or behaviour.
Analytics: AI can collect and analyse data from players or games to provide insights or feedback.
Creativity: AI can generate new ideas or concepts for games or game elements.

AI also has applications in other domains related to gaming, such as:

Education: AI can create educational games that can teach or assess various subjects or skills.
Healthcare: AI can create therapeutic games that can help with physical or mental health issues.
Entertainment: AI can create interactive stories or narratives that can adapt to the player’s choices or emotions.
Research: AI can use games as a testbed for exploring various aspects of human cognition, psychology, or sociology.

Some of the examples of AI in gaming include No Man’s Sky, Assassin’s Creed Odyssey, Minecraft Earth, Google DeepMind’s AlphaGo, and OpenAI’s GPT-3. According to ResearchAndMarkets.com, the global AI in gaming market size was valued at $1.56 billion in 2019 and is expected to grow at a CAGR of 32.8% from 2020 to 2027.

Mobile gaming

Mobile gaming refers to playing games on smartphones or tablets. Mobile gaming has become one of the most popular and accessible forms of gaming due to the widespread adoption of smart devices, wireless connectivity, and app stores. Mobile gaming offers several benefits for gamers, such as:

Convenience and portability.
Affordability and variety.
Casual and social gameplay.
Innovation and creativity.

Mobile gaming also creates new opportunities and challenges for game developers, publishers, and platforms, such as:

Reaching a massive and diverse market.
Monetizing through different models, such as in-app purchases, advertising or subscriptions.
Optimising for different devices, operating systems and network conditions.
Competing with a large number of games and apps.

Some of the most successful and influential mobile games include Candy Crush Saga, Angry Birds, Clash of Clans, Pokemon Go, PUBG Mobile, and Among Us. According to Newzoo, the global mobile games market is expected to generate $90.7 billion in revenues in 2021, a 4.4% increase from 2020. The industry is also projected to account for 50% of the total game market by 2023.

Cross-platform gaming

Cross-platform gaming is a trend that enables gamers to play games across different devices, platforms, or networks. Cross-platform gaming can take various forms, such as:

Cross-play: Gamers can play the same game with or against other players on different devices or platforms.
Cross-save: Gamers can save their game progress and access it on different devices or platforms.
Cross-buy: Gamers can buy a game once and play it on different devices or platforms.
Cross-progression: Gamers can transfer their game achievements or awards across different devices or platforms.

Cross-platform gaming offers several benefits for gamers and game developers, such as:

Enhancing the accessibility and availability of games.
Increasing the player base and retention.
Improving the social and cooperative aspects of gaming.
Reducing the fragmentation and duplication of games.

Cross-platform gaming also poses some challenges, such as:

Balancing gameplay and performance across different devices or platforms.
Ensuring the compatibility and security of games.
Resolving conflicts or disputes between different platforms or publishers.
Adapting to the preferences and expectations of different audiences.

Some examples of cross-platform games include Fortnite, Minecraft, Rocket League, Call of Duty: Warzone, and Genshin Impact. According to MarketsandMarkets, the global cross-platform gaming market size was valued at $1.32 billion in 2019 and is expected to grow at a CAGR of 14.3% from 2020 to 2025.

Social gaming

Social gaming is a trend that involves playing games with or against other people online or offline. Social gaming can be seen as an extension of social media, where gamers can communicate, interact, share, and collaborate with each other through games.

Social gaming offers several benefits for gamers, such as:

Providing a sense of community and belonging.
Enhancing the fun and enjoyment of gaming.
Supporting learning and skill development.
Promoting positive behaviours and attitudes.

Social gaming also has implications for game developers, publishers, and platforms, such as:

Increasing the virality and popularity of games.
Generating user-generated content and feedback.
Leveraging social networks and influencers.
Creating loyal and engaged fans.

Some examples of social games include FarmVille, Words With Friends, Roblox, Among Us, and Animal Crossing: New Horizons. According to Statista, the global social gaming market size was estimated at $17.4 billion in 2019 and is projected to reach $32.6 billion by 2025.

Novel gaming hardware

Novel gaming hardware is a trend that involves creating new or improved devices or accessories that enhance the gaming experience. Novel gaming hardware can range from controllers, keyboards, mice, headsets, monitors, speakers, cameras, sensors, haptics, wearables, and more.

Novel gaming hardware offers several benefits for gamers, such as:

Improving the comfort and convenience of gaming.
Increasing the immersion and realism of gaming.
Enabling new forms of interaction and expression.
Supporting accessibility and diversity.

Novel gaming hardware also creates new opportunities and challenges for game developers, publishers, and platforms, such as:

Developing games that are compatible or optimised for different devices or accessories.
Innovating with new features or functionalities.
Differentiating from competitors or imitators.
Balancing quality and affordability.

Some examples of novel gaming hardware include the Valve Index (VR headset), Razer Kishi (mobile controller), Logitech G915 (wireless keyboard), Xbox Adaptive Controller (accessible controller), Nintendo Switch (hybrid console), and Oculus Quest 2 (standalone VR headset). According to Mordor Intelligence, the global gaming hardware market size was valued at $119.02 billion in 2020 and is expected to grow at a CAGR of 9.64% from 2021 to 2026.

How can parents ensure their children’s safety while playing games?

Playing games can be a fun and educational activity for children, but it also comes with some risks and challenges. Online gaming, in particular, can expose children to various threats, such as cyberbullying, hacking, phishing, malware, swatting, doxxing and inappropriate content. Therefore, parents need to be aware of these dangers and take steps to protect their children while playing games.

Here are some tips on how to ensure your child’s safety while playing games:

Monitor and limit what they’re playing. Check the ratings, reviews, and descriptions of the games your child wants to play and make sure they are suitable for their age and maturity level. Set rules and boundaries on how much time, money, and personal information they can spend on gaming. Use parental controls or filters to block or restrict access to certain games or features.
Talk to your child about staying safe online. Educate your child about the potential risks and harms of online gaming and how to avoid or deal with them. Encourage your child to be respectful, responsible, and ethical when playing games with others. Remind your child not to share personal or identifying information with strangers online, such as their name, address, phone number, school, or photos.
Go over their account’s privacy settings to make sure they stay safe while gaming. Review the privacy and security settings of the games and platforms your child uses and adjust them according to your preferences. For example, you can disable chat or voice functions, limit friend requests or messages, turn off location services or camera access, or enable two-factor authentication.
Supervise and support your child while they are playing games. Keep an eye on your child’s gaming activities and behaviour, and intervene if you notice any signs of trouble or distress. For example, if your child is being bullied, harassed, or scammed online, you can report or block the offenders, contact the game developers or moderators, or seek legal or professional help. You can also provide emotional support and guidance to your child if they are upset or confused by something they see or experience online.
Play games together with your child or watch them play. One of the best ways to promote safety with video games is for parents to engage themselves in the games their children play. Of course, you can play video games together with your child (if you’re so inclined!), but you can also watch your child as they play. This way, you can bond with your child, learn about their interests and skills, monitor their online interactions and behaviour, and help them make smart and safe choices while gaming.

Playing games can be a positive and enjoyable experience for children if they are done in a safe and responsible manner. Parents can play a vital role in ensuring their child’s safety while playing games by following these tips and staying involved in their child’s gaming life.

Conclusion

The gaming industry is undergoing significant transformations with various cutting-edge technologies, changing the way gamers play and experience games. The trends and innovations discussed in this article are not exhaustive, but rather indicative of the direction and potential of the industry. The gaming industry is also influencing and being influenced by other sectors and domains, such as education, healthcare, entertainment, art, culture, sports and more. The gaming industry is not only a source of entertainment, but also a driver of innovation, creativity, and social impact.

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