Whilst world leaders and economists debate the threat to growth caused by lockdowns and social distancing measures, this extended time at home has increased the number of hours we spend in front of a screen. With numerous lockdowns comes cancelled or restricted travel plans, furlough and school and work closures. This reliance on screen time has no doubt boosted one industry in particular – Gaming.
From PlayStation to Gaming Nation
The gaming industry as a direct result of this extra screen time has seen an increase in users inspired by digital activities. Whether you were already an
avid gamer pre-Covid or have upgraded your gaming time during the pandemic, there is no doubt gaming has grown in popularity. The global gaming community is reported to have increased by a net of 4% since the start of the Covid-19 outbreak.
A study by Simon-Kucher found that out of more than 13,000 respondents in 17 different countries not only did 39% confirm they were increasing their gaming time but 21% suggested they were likely to continue to spend more time online post Covid-19. This highlights how the gaming world has kept people entertained and connected during a period of limited contact with the outside world. Combined with the increase in movie/TV deals, the two come hand in hand, as Netflix subscribers soar past 200 million members, series such as The Witcher have directly influenced an increase in people playing the Witcher games, increasing from 28,000 to over 94,000 players.
How Sustainable is Growth Long Term?
The gaming industry is now estimated to be worth a staggering $170 billion globally, with reports from Google and OC&C Strategy Consultants reporting an increasing growth in coming months. The ability to stream on or download on any device, combined with the rise of social media blurring social experiences and gaming, has resulted in the acquisition of new audiences and growth within core groups. A recent report by Deloitte found that 40% of Millennials (24-37) and Gen Z (14-23) listed playing video games as one of their top three entertainment activities. Demand for the Nintendo Switch and the PS5 reached new record highs in the last year, showing some correlation between gaming popularity and stay at home orders.
The big question however will be whether the gaming industry can maintain their customer base long term, when normal life resumes. Physical games are in decline, and instead replaced with digital sales and game distribution. Cloud gaming platforms, though still young, are creating a competitive landscape and new social forum with gamers and spectators engaging more than ever. Our usual forms of entertainment, including live sports, concerts and festivals have been replaced with watching others play and commenting on video games. Therefore, companies will need to ensure they have various touchpoints and incentives in place to ensure they keep users engaged post lockdown within the digital gaming industry.
Legal Challenges
The impact has also been visible in the legal profession with an increasing demand for in-house legal teams with software as a service (SaaS)/subscription featured regularly in legal documents. Whether we are disputing ambiguous terminology such as how to define streaming, how to monitor gaming platforms, IP rights, media rights, which licenses to grant or the inevitable M&A activity that will follow this growing industry, it is safe to say that it is not game over for gaming.
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