Video Game Market

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Video Game Market


The video game space has continued to evolve as the digital era expands, allowing for some key innovations, such as integration of Virtual Reality (VR), among other key trends.

The Virtual Reality Role

  • Virtual Reality (VR) has been the core of video game space main innovation through its three-dimensional realistic and immersive simulations, As the digital space continues to expand, Virtual Reality continues to gain ground in all the significant aspects of video game space. It has become an irresistible and undeniable trend in the gaming industry and has continued to benefit and flourish in the gaming industry at a great speed.
  • Video game entrepreneurs have continued to immensely benefit from providing a satisfactory customer experience with VR, and in turn, this has increased profits, drastically. A significant number of large-scale game enterprises are reported to join the VR movement, and recognizing the fact that it is a trend that is here to stay, as it has transformed the video game space experience.
  • Virtual reality’s role is not to replace the traditional methods, as it does not rely on traditional environments. Instead, it seeks to create its own space and experience to provide more than just entertainment. Today, VR continues to gradually benefit from various sectors such as health, education, retail, and fitness, among others.

Voice and Facial Recognition

  • Voice control is a trend that is catching up, especially for gamers who do not enjoy using hardware such as the joystick. Voice recognition is not necessarily a new trend, as it has been there for a while now. However, it was not as accurate in the past as it is now.
  • The latest voice recognition is in a better position to take and act on human commands accurately. These advanced commands have improved the video game space significantly, as players can apply advanced commands, such as interacting with other gamers virtually, run a Google search and play from the digital library, among other commands.
  • Facial recognition solutions have also been advanced enough to recreate a user’s identical replica in the gaming world. This trend relies on immense and accurate detail, where users can pick a game character or an avatar of their choice to take a specific facial expression. This has proven achievable with the help of facial recognition advancement, modeling technology, and three-dimension scanning.
  • These technological advancements have made it possible for gamers to personalize their characters as they wish.

The Spectator Experience

  • According to an article published by The Guardian, developers today are increasingly becoming aware of the need to provide a spectator experience in terms of not only how the games will be viewed, but also how they will be played.
  • The statistics show that, unlike before when people would spend long hours playing games, today, they are spending more time watching games. It is, therefore, predicted that soon, more developers are likely to exploit this trend, and target these games at YouTubers.
  • This trend has started to take place, based on Indie titles such as Goat Simulator, SpeedRunners, and Gang Beasts, which have been created to appeal to the YouTube audience, as well as streamers that use Twitch, via co-op modes and quirky visuals.


Just like any other sector, video game space is competitive, and this is clear from both revenue and user numbers. Thus, a competitive analysis can help to understand the target demographic, recent innovations, as well as their unique standing, in the market space.


  • As a key player in the video game space, eSport continues to become popular, that it is predicted to be a contender in the 2024 Olympics Games. Its competitiveness in the industry is undeniable. This can be gauged by its high number of players, in addition to its economic value.
  • As a key player in the industry, eSports contains various formats, but its most popular is the FIFA 18 format, which was sold approximately 24 million times, for 11 months after it was launched in the market. During that period, the format registered up to 7 billion played matches, in addition to over 20 million players, from more than 50 countries that participated in the virtual FIFA competitions.
  • According to a survey carried out by the PricewaterhouseCoopers, involving 1001 people aged between 14-35, it was proved that 80.6% are regular players, while 55% of the male respondents admitted to playing several times a week.


  • As a key player in the industry, Nintendo’s competitive analysis is based on both revenue and target demographic, in addition to recent innovation. As a market leader, Nintendo has played an instrumental role in the video game industry with its innovations such as Mario, Metroid, and Zelda.
  • Nintendo has continued to maintain its demographic not only through hits consoles, but also through good quality games, and brilliant storylines. Customers review shows that Nintendo has a way of keeping its customers interested, and can, therefore, be considered the backbone of the gaming industry.
  • As the oldest player in the industry, Nintendo was in existence long before even the invention of computers. Thus, they have been a seasoned key player industry since the ’70s and continue to wow its demographics with a new invention.
  • While Nintendo does not have the highest sales revenue compared to its competition, it is revered for not only its longevity but also its popularity and legacy. In 2018, alone, the company made $5.59 billion.

Epic Games

  • As one of the industry players that is revered for changing the game market, Epic Games initially started out small in the ’90s. However, with time, the company developed various games such as Unreal, the first-person shooter, which became highly popular.
  • In 2012, Epic Games shifted to a new business model, “games as a service,” that has continued to gain popularity among its existent and target demographic, and launched a new game, Fortnight. Fortnight became public in 2017 and was backed with a battle royale mode release, which set the pace in gaining more audience and overshadowing the initial games released.
  • By May 2018, Fortnight had gained more than 125 million players, raking in a sales revenue of $1 billion by July 2018. Before Fortnight was released to the public, Epic Games stood at $625 million. Naturally, the company’s value shot up to $4.5 billion after publicly launching Fortnight.


Giant companies such as Amazon, Apple, Microsoft, and Google, have made their investments in the video game space. Part of the investment focuses on tech or gaming styles.


  • Amazon’s approach to gaming has been considered one of the most intriguing, compared to that of its counterparts because it is not only opaque but also has an upper-hand when it comes to controlling a wide range of game-related enterprises. However, each one of these enterprises is managed separately and Amazon does not wish to integrate them.
  • Amazon’s most visible game asset, Twitch, is a powerhouse, based on its demographic of over 140 million viewers, each month. Further, Twitch attracts at least 15 million viewers, daily. On average, the 15 million daily viewers spend approximately 95 minutes each, and this probably explains why it is considered an important vector as far as global game culture and marketing goes.
  • AWS is a less visible Amazon cloud, which is tasked with handling back-end computing. Other than providing platforms for outsourced games, Amazon also creates its own games and it is predicted that the tech giant plans to release more games over the next few months in 2020. It is only a matter of time before these games.


  • For such a long time, video games have always been segregated from computers. Even though they were considered part of modern technology since the ’70s, they were always considered a separate function, until Microsoft incorporated the games as part of the technology, and not just an afterthought.
  • In 2001, when Microsoft Introduced the original Xbox, which opened floodgates for other tech giants such as Amazon, Facebook, Apple, and Google, to stop treating video games as a niche, or an afterthought. These tech giants have been inspired by Microsoft to prioritize strategic gaming and the results are evident.
  • After Microsoft launched Xbox as part of the services and products, the likes of Amazon, Apple, Facebook and Google followed this example and the incorporation has yielded over $150 billion in revenue, annually. In 2020, it is predicted that online games will be considered an important aspect of the tech bottom line.


  • While Google joined the gaming foray in 2019, there are over 250 million daily viewers who enjoy game videos on platforms such as YouTube today. With the introduction of Stadia, Google has proven that it is ready to give its viewers an advanced video gaming experience.
  • Google also aims to separate the gaming platform from local computing hardware. From the beginning, electronic entertainment has always been delegated to chips that require monitoring with a console close to a device such as a computer, phone or PC.
  • As technology advances, Google has sought to establish more convenient gaming measures and through Stadia, a cloud gaming service, gamers can enjoy this activity without using a lot of hardware. This provides a more convenient and light gaming experience, as all the heavy lifting is substituted with a remote server.


  • Apple, just like its giant tech counterparts, continues to expand its customer base by investing in leading gaming companies such as Ubisoft, Tencent, and Electronic Arts. This is achieved through incorporating mobile games in apps.
  • It took longer than necessary for Apple to join the gaming app bandwagon, and this is because co-founder Steve Jobs was not a fan of video games. However, today, video games have become a part of Apple’s biggest financial drivers, yielding over 80% in sales revenue.
  • These video games can be accessed from Apple’s App Store and with more than one billion iPhone and iPad gamers, Apple executives confirmed that iOS is thus far the most popular video game app in the world.
  • Even though Apple is not the original creator of these games, the company continues to enjoy generous sales revenue of approximately $10 billion annually, coming close to Sony and Microsoft.