Despite major industries struggling to recover past the lockdown era in 2020, the global esports industry is still thriving. Many gaming companies are still reporting increased revenues, although many businesses continue to suffer the effects of social distancing. That’s mainly because gaming is an engaging distraction for people craving for social interaction in the comfort of their homes.
Here’s a closer look at the soaring betting market, which shows a great improvement in sales and playing time since the lockdown started several months ago.
The Gaming Business Model
The global gaming industry is expected to be worth almost $160 billion by the end of 2020. That makes it nearly three times of music industry revenues ($57 billion) four times the amount of revenue brought in by box office movies ($43 billion) reported in 2019.
Asia-Pacific has the biggest market share by revenue, claiming almost 50% of the gaming industry in value, while North America claims about a quarter of the revenue. The revenues are entirely driven by the player spending, though the business model in the esports industry has significantly evolved over the last five years.
Today, many players buy fewer titles than ever before, though they’re willing to spend more time on the games they choose. This trend has shifted the esports business model from a single unit to generate recurring revenue from the current customer base. As a result, online gaming sites like the Betway casino also leverage this trend by allowing punters to wager on their favourite esports titles.
The business model’s shift has made the industry laser-focused on user engagement, besides making the games exciting. Besides making the games attractive, the adoption of in-game monetization has helped to increase the amount of revenue collected directly from esports, besides wagering on sites like Betway.
Increased User-Engagement Amid Software And Hardware Development Issues
Like many leading companies in the world, the gaming industry supports several charitable initiatives worldwide. Social actions aside, the gaming industry has reported a huge boost in the number of players available to publishers. That’s mainly because esports gaming is a great in-door activity, which explains why it’s been flourishing since people started social distancing.
In the first quarter of the year, Asian gaming giants Tencent and Nintendo saw sales increases of about 31% and 41%, respectively, compared to the previous year reports. Market experts also report that the market showed a 63% increase across 50 key markets globally. Even games released in the lockdown era are doing great in the current market, with titles like Animal Crossing and Doom Eternal breaking sales records.
While growth is evident in the current esports market, looking at the sales and downloads in the isolation period doesn’t give you a clear picture. That’s because many games come as free to play titles, though the players can still spend money with in-app purchases. For this reason, the metrics have another story to tell.
Verizon reported a 75% increase in gaming traffic at peak hours than the 12% increase reported in digital video traffic. However, almost 75% of the esports revenue still comes from broadcasting and advertising, though most of these deals long existed before the lockdown period.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
Nigeria To Maintain Buhari, Osinbajo With N12.3 Billion In 2021
DESPITE paucity of funds leading to plans by the Federal Government to borrow additional N4.2 trillion in 2021, both President Muhammadu Buhari and Vice-President Yemi Osinbajo have asked the National Assembly to approve N3.227 billion for them to travel during…
MONDAY LINES: The End Of SARS
YOU know if I shoot you, nothing will happen. The highest anyone will do is cry justice on Twitter,” Lagos-based entrepreneur Samuel Otigba told CNN that he got that threat live and direct from a SARS operative. He said his offence was his refusal to pay bribe to the officers…
5 Things To Know About The Dissolution Of SARS — Police
he Nigerian Police Force(NPF) have bowed to the pressure and demand of Nigerians to ban a unit of the force, Special Anti-Robbery Squad (SARS) on Sunday. Recall that protests from youth have been ongoing across the states of the country and Nigerians in diaspora have also joined in the struggle to end the police unit…
Amnesty International Demands Prosecution Of Officers Involved In Extrajudicial Killings, Human Rights Abuse
As varied reactions trail the dissolution of Special Anti Robbery Squad (SARS) by the Inspector General of Police, Mr Mohammed Adamu, the Amnesty International on Sunday demanded the immediate prosecution of officers involved in extrajudicial killings and other gross human rights…
SARS Has Outlived Its Usefulness, Lasting Solution Must Be Found ― Pastor Bakare
Pastor Tunde Bakare, the presiding pastor of Citadel Global Community Church, formerly called Latter Rain Assembly, on Sunday said SARS, an arm of Nigeria police created to combat armed robbery incidents in the country has outlived its usefulness, declaring that a lasting solution must be found towards a more holistic and fundamental…