If you find your child is playing a video game too much, don’t yell at them. Maybe your next move should be to ask what games they are playing and invest in the companies behind them. This year, the global games market will generate around $175.8 billion. That’s huge. But it’s still a 1.1% drop from the previous year, according to Newzoo.
The dip is easy to explain. We’ve seen interrupted supply chains and a semiconductor shortage. The console and PC markets are particularly affected by these negative trends – with a negative growth rate of 1.4% (PC) and 8.9% (console). The smartphone has long since displaced the two former driving forces of the gaming industry in terms of sales strength.
We can expect the smartphone segment to generate around $79 billion this year and thus account for around 45% of industry sales – and the trend is rising, according to Statista. Also growing rapidly is the tablet market, which covers about seven percent at $11.6 billion.
Console games continue to be the second strongest driver of the games industry with a 28% market share, followed by PC downloads and physical copies with 19%. Bringing up the rear are browser games. However, they account for only about one percent of the global market and will lose a full 18% compared to 2020.
The Universal Video Game Tool: Smartphones
There are several reasons why smartphone games are so much more successful than the rest of the industry. In Germany alone, around three-quarters of the population already own a smartphone. No other medium achieves such a reach in population.
In addition, most games for smartphones, like tablets, are much more intuitive thanks to touchscreen operation and have a lower inhibition threshold than console games, for example.
The cost factor also plays a big role: while larger developer studios create most console and PC titles, a smartphone app often only requires a single person.
My conclusion: Invest in the gaming industry now!
Virtual currencies were successfully used in the gaming industry years ago. Likewise, semiconductor chips (semiconductors) are essential for both the gaming industry and for mining cryptocurrencies.
Therefore, you should invest in these future fields. Not only by direct investments in selected cryptocurrencies but also in gaming stocks. I will continue to dig into this trend in the coming weeks.