The Rise of the Gaming Industry: Opportunities in Technology and Entertainment
Whether you are interested or not, the gaming industry has now found its place in conversations across all age groups. With its rapidly growing market size in recent years, massive investments, and record sales, the digital gaming industry has become a significant player in the business world, though it has been capturing the interest of different audiences for over 50 years.
Whether you are interested or not, the gaming industry has now found its place in conversations across all age groups. With its rapidly growing market size in recent years, massive investments, and record sales, the digital gaming industry has become a significant player in the business world, though it has been capturing the interest of different audiences for over 50 years.
The digital gaming industry took its first major commercial steps in the 1970s with the popularization of arcade machines. Since then, it has traveled a long path to gain both commercial and social acceptance. Despite facing criticism and skepticism in its early days due to social habits and traditions, the industry has proven itself over time, standing tall against past prejudices. With its openness to all forms of entertainment, technology, and art, video games have been embraced by subcultures and have often served as pioneers in introducing new technologies to mass audiences.
Technological innovations such as CD/DVD/Blu-Ray media formats, motion capture animation, artificial intelligence applications, augmented reality, and mobile devices were first tested in gaming before reaching wider audiences. In this sense, it is accurate to say that gaming and technology have always evolved hand in hand. By leveraging each new technology, the industry has consistently expanded its reach, drawing significant attention in the 2010s with the rise of mobile devices.
Expanding Market and the Rise of Mobile Games
According to Statista, mobile gaming now reaches over 2.2 billion users worldwide. Thanks to this contribution, the digital gaming industry surpassed the combined global market sizes of the film and music industries by 2019. By 2022, the global video game industry had reached a market value exceeding 184 billion USD, taking the top spot in the entertainment sector. While rapid digital transformations in the past 15 years were expected to positively affect many industries, few could have predicted such explosive growth in gaming.
In today’s fast-paced world, mobile games have become an essential outlet. In the 2010s, smartphones brought gaming into our pockets, and in 2020, the pandemic brought it into our homes. Games offered people a new window into different worlds—whether to pass time on a commute or to unwind after a stressful day. Alongside these positive social and psychological impacts for users, game developers themselves have also reaped tremendous financial rewards. So significant have these revenues become that major technology giants now align their strategies with the gaming sector.
Big Tech Investments in Gaming
Apple, Google, Meta, Microsoft, and Tencent are among the leaders driving this industry. According to SensorTower’s Q3 2022 data, players spent 7.4 billion USD on Google Play Store and 11.9 billion USD on Apple’s App Store. Given their massive ecosystems, it is unthinkable for these companies to ignore gaming or limit themselves to mobile alone.
Apple is preparing to launch its VR headsets in 2023, which are expected to make a huge impact.
Meta has reached over 350 million monthly users with Facebook Gaming and made a major leap into VR by acquiring Oculus in 2014. Meta Quest 2 VR sets have sold over 15 million units, generating more than 1.5 billion USD in VR gaming revenue.
Microsoft, with its Xbox consoles and ecosystem, competes against Sony’s PlayStation and Nintendo. Xbox Series S and X consoles have surpassed 20 million sales, and Xbox Game Pass has generated over 3 billion USD in revenue. In 2022, Microsoft also bid 68.7 billion USD to acquire Activision Blizzard.
Tencent, a China-based mega corporation, has become a dominant force by acquiring companies such as Epic Games, Riot Games, and Krafton. Its ownership of games and platforms has secured Tencent’s place among the world’s largest gaming companies.
Small Studios, Big Successes
Companies like Israel-based Moon Active show that you don’t have to be a mega-corporation to achieve massive success. With hit games like Coin Master, the studio generates over 800 million USD annually, proving that in gaming, everyone starts on equal footing—and consumers ultimately decide the winners.
The Scale and Impact of Digital Gaming
The scale and influence of the digital gaming market continue to grow year after year. The industry has shown resilience even during crises, benefiting both consumers and investors. If you haven’t yet explored gaming, we encourage you to download a game that interests you from your smartphone’s app store and experience it firsthand.
Boğaziçi Ventures and Investment Opportunities
At Boğaziçi Ventures, we combine our deep knowledge of the gaming industry with the activities of our newly established BV Portföy Yönetimi. If you’re seeking a sector where your capital can grow in value, we recommend exploring game and technology-focused investment funds like those offered by BV Portföy.
The growth potential of the digital gaming industry and the returns from investments in this sector continue to attract investors. With its intrinsic link to technology, the gaming industry is poised to keep offering great opportunities in the future. The industry provides opportunities across a wide spectrum for both individual players and large investors—and it will continue to grow without slowing down in the years ahead.
Technology and Gaming: Two Forces Moving Together
The strong bond between gaming and technology fuels the growth of both industries. New technologies are often tested and showcased through games, helping them reach mass audiences. At the same time, gaming contributes to the advancement of technological innovations. For example, artificial intelligence and augmented reality were first widely implemented in games before being adopted by other industries.
The Rise and Impact of Mobile Games
Mobile games have played a pivotal role in the growth of the gaming industry. The spread of smartphones significantly boosted demand for mobile gaming, encouraging developers to focus on mobile platforms and raise quality standards. Today, the mobile gaming market is worth billions of dollars—and this trend is expected to continue in the years to come.
Social and Psychological Impacts of Gaming
Games matter not only for entertainment but also for their social and psychological effects. They can help people cope with stress, foster social interaction, and encourage creativity. Through gaming, people can acquire new skills and explore different worlds. These benefits contribute to the industry’s positive impact on society as a whole.
The Future of the Gaming Industry
The path ahead for gaming is exciting. With rapid technological development and the industry’s ability to adapt, growth is expected to continue. Widespread adoption of augmented reality (AR) and virtual reality (VR) will enrich game experiences, while artificial intelligence and machine learning will personalize them further.
Opportunities for Investors
For investors, the gaming industry presents immense opportunities. Its fast growth and high return potential are highly attractive. Investments in mobile games, VR/AR technologies, and even game studios themselves can yield significant returns in the long run. For this reason, it is crucial for investors to follow the industry closely and seize opportunities as they emerge.
Conclusion
The gaming industry, fueled by technological advances, has become a rapidly growing and widely embraced sector. Beyond entertainment, its social and psychological impacts make it an important cultural and economic force. With continuous growth and the integration of new technologies, the industry is set to flourish further. Both individual players and investors should watch this space carefully and consider the opportunities it provides. If you haven’t yet taken your first step into gaming, now might be the perfect time.