The gaming market is an economic sector which exists worldwide. However, its prevalence can be especially witnessed in the U.S. and in certain countries in Asia. The primary focus of the gaming industry is the development and sales of video games, gaming equipment, and gaming systems. Companies in this market are involved with marketing and branding of games. This industry employs professionals such as art director that supervise the game graphics to professionals that specialize in promoting sales of the games and related products.
The gaming industry creates several types of games. Certain games call for a specific kind of gaming system, while other can be used on different types of platforms. Additionally, certain games can be played using an Internet browser, while some can be downloaded on personal computer and can be played online or offline. Consumers that are serious gamers tend to invest in high-end computers which are compatible with the next-generation, cutting-edge technology games.
The Contributors and Inhibitors of the Gaming Industry
Several elements shift the dynamics of the market in favor of the gaming industry, while some inhibit it. Growth in the broadband industry has allowed users to access high-speed Internet which allows users to download games quickly and play multi-user games online. Efficient hardware compatibility has standardized installation of many gaming products and equipments which further drives the growth of this market.
Other factors such as wireless gaming and growing disposable incomes, especially in emerging economies of the world boosts the growth of the gaming industry. Companies in the gaming industry face fierce competition, which drives them to develop cutting-edge gaming technology. Hence, technological advancement is another factor that fuels the market. Innovative pricing model generates a range of games and its systems which cater to huge range of users, which continues to boost the growth of this industry.
Certain elements such as maturity of other parallel segments and counterfeit products tend to threaten the growth of the market. Factors such as substitute products or substitute new gaming innovations also tend to hurdle the growth of the market.
Myriad Types of Gaming Products
The gaming industry is divided into two major segments which are the software and hardware gaming market.
The hardware market consists of physical equipment such as gaming hardware tools, consoles, PC, Mobiles, Laptops, Tablets, and others. The software market includes gaming software development and installation of compatibility software. The software market in the industry generates the maximum revenue share, than the hardware market, followed by the revenues generated from the online gaming industry.
The gaming market has received a boost globally due to the increase in use and supportability of the software on devices such as smartphones, tablets, laptops, PCs, etc. Currently, there exist millions of games which are available on the Internet for free or at a very low price.
The Global Scenario of the Gaming Industry
According to a market intelligence agency, the global gaming market generated a share of USD 70.5 billion in 2011. The market is projected to amount to USD 117.9 billion in 2015 with a 13.7% CAGR, during the forecast period of 2011 to 2015.
The industry according to geography is segmented into U.S, Asia Pacific, Europe, and Rest of the World. Currently, U.K. is the largest market for gaming which is followed by U.S. and Asia Pacific. The sector of gaming in Asia Pacific will demonstrate the fastest growth in the coming few years.
The leading companies in the gaming industry are Nintendo, Microsoft, and Sony. These are followed by other companies such as Apple, Zynga, Disney Entertainment, EA sports, Activision Blizzard and others, that hold a significant share in the industry.