The Video Games Business: from the 80s to the 2023 level

Una serie de jugadores compiten en un torneo de Counter Strike.

In the 80s, video games reached the mass consumption market. Slowly but constantly, it’s beginning to change the way, the time and the reasons we consume.

With strong allies on its side like technology, entertainment business and the increasing volume of companies investing on them, there’s only one reality nowadays: the e-sport industry and e-gaming in general.

Given the current topic, I must now say that I write this article as a former regular user during the last decade of last century, when online communities and forums started to grow in order to organise competitions and gaming nights.

Nowadays, everything has escalated. We’re now at a point in which it’s all connected to the tech industry, brand investment in events and video game companies and professional gamers with careers on the rise. 

Once deemed alleged sources of violence and other problems, we must mention these hard times for the industry. 

e-Sports have put across a strong message and have worked to fight violence, discrimination and bullying. Currently, the industry and the events seek to protect the integrity of both players and workers. 

Numbers Speak for Themselves 

The electronic sports industry is a world wide industry with the following characteristics:

  • A market share of about one billion dollars in 2019 with a forecast that estimates it will triple for 2026.
  • An audience of about 500 million users, hoping to add 100 more in 3 years time. 
  • Events in stadiums that max their capacities as well as million viewers online. 
    • Prizes that can reach 40 million dollars per massive event.
  •  Among those users that intend to spend money on events, games, etc., the numbers are as follow:
    • 30% spend between 1 and 20 dollars.
    • 45% spend around 80 dollars.
    • And 25% of them spend up to 150 dollars.

Technological Developments and the New Professions 

As part of the tech industry, there’s a video game developing area that creates its own ecosystem. It also has its own demands when it comes to attracting, training and hiring professionals.

These are the structural areas we can find in this sector:

  • Technical and technological development of the product
  • Art, aesthetics, skins and sceneries design area.
  • And then there are those who think, dream, imagine and give detailed descriptions of the games (levels, characters, situations, rules, etc.)

Let’s not forget that we’re talking about a business here. That’s why you’ll always find project management teams, as well as finance, human resources, marketing and legal. Up to this date, the industry also requires lawyers, historians, sociologists, actors and big data specialists, among others. 

Whether it’s with its own departments or outsourcing to SMEs or start-ups, the ecosystem is gaining strength and size, both with specific positions as well as more traditional professions. 

While on the topic of new positions, particularly in the organisation of e-sports events, here are some of the participants:

  • Teams with trainers and sponsors.
  • Publishers — Brands that own images and video games.
  • Distribution platforms and a specialised technical team. 
  • Promoters and brands that organise and sponsor the events.
  • Communities of users, influencers, channels, etc.

Brands, with increasing budgets, are the perfect driver to keep this up and design more and more events that will be consumed by more and more people. This is a great moment to show your fresh side, closer to young people and with an innovative essence.

Can It Have a Social Impact? 

I think there are some situations that take place in our space-time that can have a strong effect both on the industry as on the people.

  • There are public and private educational institutions that focus on promoting and teaching programming and robotics among children as young as 7 years old.
  • Gaming has become a real alternative to train and prepare employees, whether in specific decision making situations or through augmented or virtual reality. 
  • NFTs and cryptocurrencies have found a strong ally in video games. 
  • Easily re-siting and low upfront investment industries can establish in different locations across the globe and hire professionals regardless of their country of residence. 
  • Constant interaction with video games has been a great model for the improvement of user experiences when it comes to design, usability and comfort. 
  • Video games invite us to believe in a more friendly general technology, that is easy to understand and centred around the user.

Changes are always estimulating and this case is no exception, thanks to the expansion of the economy in general as well as for the opportunities it will bring in the future.

Dibujo de una bombilla.

Human intelligence as the best technology

Nicolás Bezek

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