The value of the video game industry would grow 140% in a period of seven years, highlighted the US company Virtual Interactive Technologies.
Thus, the video game industry is expected to grow from approximately $125 billion in revenue globally in 2018 to $300 billion by 2025, fueled by 2.5 billion anticipated players worldwide.
It has also been estimated that gamers spend more than seven hours a week playing games, a figure that continues to grow, with players between the ages of 26 and 35 spending 8.2 hours a week playing games and players over 60 spending around 5.6 hours a week playing.
In general, video game hardware platforms are divided into mobile games on smartphones, PC/laptop games, and consoles.
Virtual Interactive Technologies further stated that it is estimated that in 2018, mobile games generated approximately $63.2 billion in revenue, while the PC/laptop market generated around $33.5 billion in revenue and the corresponding amount for console games was 38 billion in revenue.
VR gaming is still in its relative infancy and is primarily found on PC/laptops and consoles, but is expected to grow substantially as hardware continues to improve, become more affordable, and become more prolific among mobile gamers.
Additionally, VR content is still in its relative infancy, which could provide an opportunity for content providers in the years to come.
Video game industry
Mobile gaming has seen the most growth over other hardware platforms, largely driven by device affordability and content availability.
According to Virtual Interactive Technologies, the fastest growing trend within the mobile gaming market has been the free-to-play model where monetization comes from in-game purchases.
Mobile gaming has its largest footprint in Southeast Asia, where mobile devices have seen substantial proliferation over the past decade, while console gaming has its largest footprint in North America and Europe, where disposable income is higher than in other regions of the world.
On September 27, 2019, Virtual Interactive Technologies Corp merged with Advanced Interactive Gaming Inc and its subsidiary Advanced Interactive Gaming Ltd. (collectively, “Advanced Interactive Gaming” or “AIG”), via a reverse merger transaction.
Advanced Interactive Gaming was founded in 2016 to provide financing solutions for independent video game developers around the world.
Advanced Interactive Gaming was deemed to be the accounting acquirer of the transaction and will be the operating entity going forward under the Virtual Interactive Technologies Corp (VRVR) name.
VRVR funds the development of video game projects to be released on various popular gaming platforms in exchange for a royalty stream on the games.
To date, the company has financed several game titles, including Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release, and Worbital.
Collectively, these games are distributed worldwide on various gaming platforms, including Sony PlayStation, Xbox, Steam, and Oculus, among others.
In addition to financing solutions, VRVR offers expertise in video game product development, publishing and marketing solutions and is actively involved in the early stages of VR/AR game development.
VRVR continues to reinvest its royalty income into growing its royalty and intellectual property contracts in the game development industry.
The video game industry is extremely competitive globally with competitors ranging from small independent developers with limited resources to very large development companies with significant financial, technical and marketing resources such as Take-Two Interactive Software, Activision Blizzard, Electronic Arts , and Ubisoft Entertainment.