The video games industry is forecast to post sales increase of over US$23 billion globally over the 2013-2018 period. With a 6% CAGR over the forecast period, video games is expected to be far more lively than traditional toys and games, which is expected to capture a CAGR of 3% within the exact same period. Several factors will contribute to this exciting expansion, such as new product development, crucial business rivalry and advanced payment models.
It is the first time ever the new static console launches from Sony and Microsoft have been close to each other, with healthy competition between the two largest console manufacturers being instrumental in growing the overall video games market. Both have endeavoured to win the most market share, stretching themselves in the race for dominance. However, a regional conflict rages as Microsoft topped the inactive console charts in North America in 2013, whereas the PS4 reigns in Western Europe, suggesting more rivalry and subsequent increase in the industry is yet to emerge.
Virtual reality offers players an almost entirely immersive experience and, in such a high-tech business, new product creation is going to be in the forefront of companies’ development plans. Both major console manufacturers have invested in new product development, with Sony still refining its Morpheus virtual reality headset, while Microsoft has released its new and enhanced Kinetic motion tracker. However, with the Kinetic now being marketed individually to the Xbox One, so that it may compete with the PS4, this technology feels much more supplementary than intrinsic to Microsoft’s plan, possibly giving Sony an edge. But Sony will still need to fend off its main contest in virtual reality, Oculus Rift. If these new technologies are able to remove, they will inevitably bring about general market development.
New pricing models in the form of”free to play” have continued to rise so as to get as much revenue as possible from consumers. Online games continued to embrace free to play 2013, as more and more games adopted the lucrative payment model. Wow remains the world’s most famous online gambling system, but it continued to lose readers over the last couple of decades. This may be due to the fact that World of Warcraft remains a subscription match, although the majority of other online games are now free to perform . However, with gaming prowess getting more important among players, particularly in Asia, a revival of subscription versions has begun, allowing gamers to now buy bundles of in-game products in the form of a monthly package, accelerating their skills within the sport. This subscription arrangement is predicted to be one of the critical drivers in electronic gaming, and, subsequently, video games over the forecast period.