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.
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