Digital Designer and World Builder
An Observation on Gaming

An Observation on Gaming

Gaming Has come a long way. I see now really in the mainstream in recent years.

Gaming was at a different place when I first got into it around 1993 playing my first Star Wars game X-wing vs Tie Fighter, Prince of Persia, commander Keen, Doom.

I remembered gaming news back then, it was mostly in magazines and E3 was just a small article in tech magazine. It was a niche hobby among “Otakus”.

Fast forward today, everywhere I go on the train nearly everyone is using their smartphone the top few apps I see running.

  • Facebook / Instagram
  • Movies / TV Shows
  • Messaging like WhatsApp
  • Gaming

There is even ads on the subway Rail advertising a new game Overhit for Mobile.

Games were once advertised to sell you a boxed 📦 good today it’s all digital and a coming streaming future.

E3 and Market size

These shows were the aspiration of many gamers yearly to get news and updates from their favorite gaming companies and a way for the comapnies to reach consumers. I rembered buying a DVD on E3 and GamesComm to get information in addition to EGM magazines and other publications.

With the recent E3 event just finished, I can see that now information is coming quickly and easily to the consumer thanks to the internet. Today its all about Press Conference reactions and Youtuber and Twitch Stars reporting rather than professional Jounralist, though that has a place too.

I was reading an interview with Phil Psencer make a statement about e3 having Trillion Dollar companies in Market Capitalization.

I am old enough to remember E3 back when it was THQ and Sega, and Xbox were the new kids coming in. But now you look at the companies that are here, and there are these nearly trillion dollar market cap… some of the biggest companies on the planet are here at E3.

www.gamesindustry.biz/articles/2019-06-11-i-would-be-nice-to-buy-a-japanese-studio-phil-spencer

And if that is not enough there are about 2 billion gamers wanting in on the action. Which is a potential to find customers of the future.

www.businessinsider.sg/microsoft-xbox-netflix-for-games-2019-1/

Game Dev is still not easy

Despite Gaming earning Tons of dollars. You still hear of layoffs and office closures. A lot of reports online cite long working hours. Many burn out. It seems to be a young mans game. Just looking at the links on various layoffs it make me feel sad to enter in.

kotaku.com/amazon-lays-off-dozens-of-game-developers-during-e3-1835523460

kotaku.com/activision-blizzard-begins-massive-layoffs-1832571288

Crunch and Cycle Layoffs are still a norm. Not sure how it will change in the future. Though there is some change starting in a small Japanese Studio White Owl on building a better culture.

A billion Users for this new medium

Games may have the potential to reach a billion users. Already games like fortnite have about 250 million active users and League of Legends 110 Million.

Games seem to be more popular than before the younger generation and many other now play it.

Maybe that is why companies like Amazon and Googles want to use gaming to reach more users to use their services.

New Battlegrounds Steaming future.

Many gaming companies want to be the next Netflix of gaming, Bethesada announced a cloud streaming tech Orion, even companies like Square-Enix want to stream their old titles. This is all to get gaming on the subscription model.

Netflix and Adobe did this proving their subscription business model works when there is a large enough audience size.

But I feel that maybe games provide a clue to reach a billion users. Here is an excerpt from an interview about a billion dollar content from Unity CEO

venturebeat.com/2018/09/15/john-riccitiello-interview-how-unity-ceo-views-epics-fortnite-success/

Riccitiello: The game industry today — here are some things worth noting. There are no billion-dollar movies anymore. There are no billion-dollar books or TV series or radio stations. There are no billion-dollar billboard companies. The top 10 games are all over a billion dollars. To start with, if you want to be in any form of content, by far the largest business you could fantasize, that you could ever achieve something in, is games. It’s the world’s biggest revenue source for IP today.

Games seem to me the medium of this younger generation.

Maybe I could make an IP that 1 Billion people use? Of course I doubt it will be the next fortnite.

I thought about making movies or even writing a book but this can’t scale and you need help from many external places to promote it just to be made if you are doing a live action show.

Now of course there are App Platforms that grows a billion views or users such as Facebook or YouTube.

Games are the next Micro Platform. Genres like MMO are mini economies.

Maybe that is why so many are give away games free on the App platforms in hopes to monetize them, by getting more users in.


Links:

www.informationweek.com/strategic-cio/digital-business/the-internets-micro-platform-economy/a/d-id/1332971

Teh William, Weiqing

Digital designer and Wizard Storyteller. World builder of Imagination.

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