The modern-day gaming industry is practically unrecognisable from its pre-Y2K iteration and it’s all thanks to rapid technological development. While gaming has always been at the cutting edge of innovation, in the past two and a half decades transformation in the industry has accelerated at an unprecedented pace, giving rise to a universally popular and highly lucrative form of digital entertainment.
Gaming today is worth approximately $180 billion, with forecasts suggesting that could increase by as much as 8.76% to reach $363.20 billion by 2027. It’s not just an entertainment industry, either, as digital gaming especially is now one of the top performing Big Tech sectors. Given its stratospheric rise over the years, this article will examine the impact of advanced technology on gaming and take a look at the key developments that could drive its growth even further.
Gaming Developments During the Decades
As internet connectivity became ever more mainstream and accessible during the early 2000s, the gaming industry was one of the first to begin capitalising on the trend. Major players like Sony, Nintendo, and Microsoft would quickly unveil brand new consoles that delivered immersive online gaming experiences. High-quality graphics and multiplayer functionalities were the hallmarks of games created in the decade, while digital distribution platforms like Steam (which hit the market in 2003) offered a revolutionary way to access and play them. Steam even played a key role in opening up the industry for independent developers, helping to foster yet more innovation and creativity in gaming by providing anyone with games in development the platform to showcase their creations to a global audience.
By the time the 2010s came along, gaming had been able to position itself as a bleeding edge industry that was ripe with potential. Several new sectors began to emerge, rapidly gaining footholds that haven’t dissipated since. Mobile gaming, for example, began outperforming both console and PC gaming combined in 2016, and eSports hit the world’s stage mid-way through the decade. Although competitive gaming had been a reality in the industry even during its “analogue” days, the sector really began to gain traction in the 2010s, particularly as titles like Dota 2 attracted lucrative sponsorship deals and viewership in the millions.
In fact, the competitive element of gaming has continued to be a major trend here in the 2020s, as evidenced by the soaring popularity of MOBAs (multiplayer online battle arena games) and the advent of cross-platform play. Cross-play is a concept that effectively allows players from across different platforms to connect with and compete against each other in the same title. Prior to its rise, players on a single platform, such as the Xbox or PC, were locked into a single ecosystem, meaning they could only collaborate or play against gamers on the same platform, even in the most expansive massively multiplayer online game. But, thanks to cross-platform gaming, those barriers are beginning to break down, giving way to more inclusive and interconnected gaming experiences.
What’s In Store for Gaming?
More recently, cryptocurrencies and Artificial Intelligence have emerged as major players in the continued growth and development of digital gaming. Crypto and blockchain tech, in particular, have already begun to reshape the gaming landscape, democratising the ownership of decentralised currencies and digital assets and providing gamers with a tangible way to earn real world rewards from the time they spend playing games online.
While real money gaming activities are an integral part of the modern gaming landscape, either in the iGaming sectors or in the pay-to-play model, GameFi offers a bold alternative.
The online casino sector, for instance, enables gamers to play an array of verticals at platforms like PokerStars Casino with and for real money prizes. This encompasses digital versions of games including jackpot slots, roulette and blackjack, all of which authentically replicate the experience of casino gaming in the digital realm. Meanwhile, the pay-to-play model used throughout conventional video games such as Runescape allows for players to purchase in-game assets like new character skins or extended gaming experiences. While both approaches have their merits, they can’t deliver the same monetisation opportunities that Play to Earn (P2E) crypto titles now do.
Artificial intelligence, meanwhile, is playing an increasingly prominent role in the continued evolution of gaming, enhancing gameplay experiences through the likes of procedural generation and realistic NPC (non-playable character) interactions. Moreover, AI-driven analytics and machine learning functionalities are empowering game development studios to optimise gaming experiences for the individual player, leading to more immersive and rewarding engagement.