Video games have come a long way, with billions of dollars are spent on new titles each year, and eSports exploding into a global phenomenon.
To further explain just how video gaming has changed over the years, Newzoo has put together a detailed report titled Putting the Video Back Into Video Games: How Games Are Shaping the Future of Media, that breaks down the six key industry trends across three key categories: business innovation, broadcasting technology and community creation. Furthermore, it discusses topics such as looking at games not just as a commodity, but also a service that appeals to hardcore and casual communities alike, and emphasizes the importance of online outreach.
The Business Trends: Games As a Service and Cross-Screen Entertainment
Both games that sell at a retail price or use a free-to-play model have the opportunity to appeal to a large audience where monetization is concerned. The addition of new content, either via DLC or through regular updates, encourages gamers to stick around and see what new items or experiences they can get. Additionally, seasonal content can also be a huge draw, as it has been with the mobile hit Clash of Clans. Opportunistic promotional tie-ins can play a part as well, like the Force Awakens-themed Battle of Jakku map that will be available to Star Wars: Battlefront players starting next week.
“This approach has also moved into the paid game space on console and PC. For example, the recent introduction of silver (a premium currency purchased with real money) into the game Destiny has opened up a revenue stream for Bungie based on cosmetic items that don t affect gameplay,” says the report.
Season passes have also played a part in keeping gamers around, including ones like Batman: Arkham Knight. This not only guarantees long-term commitment to a game, but also promises of fresh content. “The principle driver of games as a service has been the emergence of a fan base that is desperate to play its favorite games. This has resulted in the convergence of the service model between mobile, PC and console games to create truly innovative cross-platform experiences,” the report explains.
Cross-overs can also be beneficial, such as with Bethesda, which launched its mobile hit, the free-to-play Fallout Shelter, as a tie-in for its big holiday moneymaker Fallout 4. “With the former released on mobile in June this year to help tide players over until the latter s release on PC and console in November, it was interesting to see Fallout Shelter s base creation gameplay was closely mirrored in Fallout 4 s sanctuary creator.
The report continued, “Rather than tying players down to one platform, game developers are leading the way by allowing consumers to access content on demand across platforms, which is essential in today s digital environment.”
The Technology Trends: Creator and Live Streaming Tools, Video Channels and Communities
Online video has become a driving factor in the world of video games, with channels like YouTube and Twitch devoted to programming. Since most broadcasters don’t lean too heavily on content provided by gamers, online serves as an inexpensive avenue for them to create an outlet.
“This has happened in two ways. The first has been the rise of the YouTuber. Releasing edited videos that match the personality and interests of the creator, Youtubers like PewDiePie, NerdCubed and Squid Gaming have tapped into the desire for gaming content among fans (even when they don t play) and offered them short gaming videos on the go,” the report noted. “The second way has been the rise of streaming services such as Twitch for all games and Mobcrush specifically for mobile titles. These services, which allow people to broadcast what is on their devices without specialist technology, have opened up live broadcasting to millions of people and businesses across the world. Viewable on mobile devices, smart TVs, game consoles and PCs, the reach and regularity of livestreams far surpasses television shows, in terms of frequency and availability on a global scale.”
As a result, a new type of consumable media has been created, and many channels, including the ESL Gaming Network, have emerged to grasp such media. It has since become a multi-million dollar business that’s done well without much media coverage, allowing creators to make careers out of what they love in the process. It’s also become lucrative to business partners, since said creators can hype games and earn thousands of dollars from the promotions as a result.
The Consumer Trends: Creation and Involvement, and Consumers Entertaining Consumers
“Rather then relying on companies to create communities for them, fans are growing and perpetuating their own groups, which happen to promote games as a side effect,” says the report. “Minecraft is the best example of this. While Mojang supports the community with the Minecon convention, the legions of guides, the millions of YouTube videos and the high-profile content creators like Stampycat have transformed Minecraft from a game into a global cultural standpoint.”
eSports players have also benefited from creating their own communities, being able to generate strong revenue through both sales of items and promotions of games they play in tournaments. This also changes the game when it comes to community efforts in management, as “the emergence of these communities signals a change from top-down maintenance of control over a brand to a consensual bottom-up conversation among the thousands of fans of a game.”
“As a result, we expect to see brands across digital and broadcast media loosening control of their brands. By creating content based on consumer feedback, working with leading creators to inspire new directions, and supporting fan work with community management, the likes of record labels and license holders will have much to learn from gaming’s organic communities.”
These six trends in all tie in with how digital media companies access and interact with the change of content, the report concluded. “The fact that anyone can, with the help of Twitch or even Periscope, become a broadcaster means that older models need to adapt to retain consumer interest. For the gaming industry, that has meant creating cross-screen content, encouraging creators to film their games in action, and lightly moderating organic communities to grow. And we believe that’s an excellent starting point for other sectors.”
