The global consultancy firm Bain & Company shared a new report named Level Up: The Future of Video Games Is Bright. The research shows valuable and detailed information, along with future insights into the global video game industry.
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The company conveyed critical points in the introduction and determined three trends transforming the game industry: improvements in technology, ever-changing monetization methods, and, of course, the metaverse.
According to the research, the global game industry revenue shows 50% growth potential, adding up to a total of $307 billion by 2027. The stats for 2022 shows the market at $199 billion currently.
Bain & Company shared that a wide variety of genres will support this growth, from story-driven immersive games with top-notch graphics to indie games with unconventional art.
The popularity of mobile will create revenue opportunities for free-to-play casual games as well. The firm also emphasized virtual world games that draw fewer, but dedicated players are most likely to contribute the highest sum because of the vast monetization options of the genre.
As Newzoo had also shared in its report on the gaming habits of Gen Z and Alpha, Bain & Company likewise concludes that games are the top media choice for younger gamers. The report notes that players are getting older, as older gamers divide their leisure time equally between social media, music, and games.
The company specified a whopping $240 billion investment in the game industry since 2019. Andre James, Head of Media and Entertainment at Bain & Company, shared some comments about the recent report:
“Though gamers have historically trended younger, our data suggests fewer gamers are aging out. This shift in behavior brings challenges, as well as opportunities, for game developers and publishers who are faced with increasing consumer demands within virtual and nonvirtual environments. Our research shows that there are three trends that are changing the industry, as well as four areas gaming studios should prioritize to ensure success.”
Four key areas to level up in the game industry
The report includes insightful recommendations for game companies, as Bain & Company suggests four essential points that will determine future success: scaling, franchise management, customer engagement, and top talents.
Scalability has been identified as one of the most vital aspects of growth in video games today. The company expects big games to require over $1 billion budget by 2027 and recommends other investments, partnerships, along with expanding M&A skills to stay on top of expenses.
The company advises that good IP will bring success. Managing a franchise in a competent and experienced manner can offer a lot. Another point of advice is communication with gamers. Companies will need to understand what gamers expect in this transforming world of gaming and adapt to the future accordingly.
The final recommendation is probably the most basic one, which is to invest in top talent. Not only financially, but Bain & Company reports that recruitment and onboarding strategies will also play a core role for companies that wish to thrive. The report contains valuable details on the topic, which can be found here.
