What lies behind the surge of video games?

“I think that inside every adult is the heart of a child. We just gradually convince ourselves that we have to act more like adults.”

Shigeru Miyamoto

As one of the world’s most iconic and inspiring video game developers, Shigeru Miyamoto has been a force of transformation. He constantly defined and reinvented the gaming industry under big titles of his creation, such as Legend of Zelda, Donkey Kong, F-Zero, Star Fox, and Mario, among others.

His work has changed the game within the business and established a new paradigm for creating, developing, and delivering video games to offer a unique user/player experience. Suffice to say, his work transformed how generations experience gaming and how businesses operate them.

Today, video games are more relevant than ever, representing a market worth expected to grow to $545.98 Billion by 2028. As a result of the ongoing pandemic, the gaming demand increased as people locked in their homes searched for indoor entertainment.

Last year, the number of gamers worldwide was approximately 3.24 billion, representing 1.48 billion gamers from Asia, the largest gaming market globally. In the United States only, the number was 201.7 million gamers.

Why are video games increasingly important?

Since their origins, video games have evolved massively, from graphics to storylines, to formats; however, they still hold the same essence and appeal to players. It’s a fun, stimulating form of entertainment and a way to develop problem-solving, improve social skills, enhance hand-eye coordination and motor skills, and relieve stress. 

“It should be the experience that is touching. What I strive for is to make the person playing the game the director.”

Shigeru Miyamoto

One thing that will echo in people’s memories as one of the most relevant events of the last year is the outbreak of the metaverse. The idea of a digital universe where people coexist in the form of avatars emerged long ago. But as COVID-19 accelerated digitalization, the metaverse became vital for many industries, primarily video gaming. 

While many of the most popular video games of the moment, such as Roblox or Fortnite, already offered a similar experience to the metaverse, it has been in recent years that these companies are scaling up their game.

Video game avatars will impact how people portray themselves

With the emergence of new video games, digital and personalized outfits became a vital asset in the virtual world. The video game industry giants are partnering with the most iconic fashion brands. For instance,  Balenciaga worked with Epic Games to launch a virtual collection in Fortune’s virtual hub, “Strange Times.” Forever 21 created a virtual space on Roblox called Forever 21 Shop City, where users can manage their own Forever 21 store and personalize their avatars. Last year Italian fashion brand Gucci released its limited collection for Roblox, with accessories ranging from $1.20 to $9. 

These are examples of how video games and fashion brands aim to address the Gen Z generation, which is more likely to consider a virtual asset equally or even more valuable than a physical one. Digital skins and avatars in the metaverse are about authenticity, creativity, and self-expression. 

A bright present and a promising future for the gaming industry

Video games grew in quality and quantity as people sought ways to entertain themselves during the lockdown. 

In April 2021, Roblox reached 202 million active users. Virtual events in the Metaverse, such as Ariana Grande or DJ Marshmello’s concerts, have reached an audience of 27 million gamers. 

As a result, the video game industry has thrived in the last years. In 2020, the console sector made alone more than $45 billion. In the US, the video games sales reached a record of “$56.9 billion in 2020, a 27% increase over the previous year.” 

Last year, Microsoft launched the latest generation of Xbox gaming consoles, aiming to offer gamers a new dynamic similar to a Netflix subscription. Microsoft’s new service, Game Pass, gives access to over a hundred video games users can play across different devices, with profit rising 33 percent to $15.5 billion last year. 

At Globant, we are helping organizations be part of the video game revolution. In 2021, Pixelynx chose us as their partner to help them develop the  Musicverse. In this new virtual world ecosystem where artists can monetize their work in the form of NFTs, virtual performances, and social experiences.

The takeaway

Videogames are evolving, offering various experiences that include traditional storylines and new experiences related to fashion, music, art, education, and so on. The metaverse is a key player in this transformation, changing our relationship with the digital and physical world. Dive deeper into the metaverse and discover new ideas in our latest Sentinel Report.