Not so long ago, there was a lot of skepticism about investing in gaming. Fast forward to 2021 and things have changed a lot. The eSports industry and gaming in general have grown a lot and they’re continuing their upward trend. Naturally, this has drawn a lot of attention from those looking for new investment opportunities. So, what is it exactly that attracts investors to the gaming sector? Let’s take a look at it from their angle.
New ways of making money
The ways one can make money from video games and apps have changed drastically. Just think about video games in the 2000s. The only way you could profit from them was by selling physical copies. Since then, so many new aspects of gaming have emerged, and some of them have opened up new opportunities to make money.
The best example of this are in-game cosmetics which have exploded in the past decade. Many new releases are free to play and the user can choose whether or not they want to spend money on outfits, skins, and all sorts of other stuff within the game. If you want an example, just look at how popular Fortnite skins and dances are.
Another good example are in-game advertisements that became popular with the emergence of mobile gaming. So many games available on Android and iOS include these ads and you have to watch them if you want to keep playing. Also, some of them even unlock special bonuses and skills in the game. Subway Surfers comes to mind when talking about this type of ad.
With all these new ways to make money, investors started turning their heads towards the world of gaming.
The growth of eSports
The next thing we have to mention is eSports. If you’re into gaming, you probably already know just how big the competitive gaming scene has become. But that’s not all. With increased interest and more events, more money has entered the industry as well. Therefore, eSports and gaming in general have become a more attractive investment option.
If you need proof, all it takes is a quick look at the numbers. According to some estimates, the global eSports revenues will hit almost $1.1 billion in 2021. The global audience is expected to reach 474 million, meaning that the industry will only continue to grow.
But this isn’t anything new. As soon as competitive gaming became a thing, investors have become interested in it. In fact, they quickly started to invest in eSports teams just like they do with traditional sports teams. Stan Kroenke, the owner of Denver Nuggets, LA Rams, and Arsenal F.C. also owns LA Guerrillas – an American pro Call of Duty eSports team.
The list of people who’ve decided to put their money into professional gaming goes on and on. The point is that the pro scene has suddenly become a popular investment option, much like traditional sports.
The rise of iGaming
Investing in casinos has always been a good idea. In the entire city of Las Vegas, casinos have a revenue of over $66 million on a daily basis. While gambling hubs like Sin City have never been more popular, traditional casinos are undergoing a lot of change.
With the emergence of high-speed internet, you could do anything you want online. Although it took some time, people realized that playing their favorite casino games is more convenient on the web. Instead of driving to a casino, you can now just spin slots or play poker from your living room sofa.
In the past few years, iGaming has boomed and the number of online players continues to increase. Not only this but new and improved games are appearing as well. With more money in the game, investors have taken a lot of interest in the world of iGaming. Eventually, they started taking over successful startups such as AskGamblers.com and profiting from them even more. Anything related to iGaming has the potential to make you money these days.
The 2020 COVID-19 pandemic has taken things to an entirely new level. With social distancing rules, more players started appearing online and iGaming became an even better investment opportunity.
Less and less costs
Earlier, we already mentioned how not so long ago, you had to sell physical copies of the game. Nowadays, only hardcore fans get these things. Instead, you can just purchase the game you want to play with a few clicks of a button.
This model saves you time and lets you hop into the game in a matter of minutes. However, the switch to digital distribution has done more than just that. It eliminates costs for game developers and services that sell games. Just think about it, they no longer have to think about the logistics. As long as games are available for purchase online, customers won’t stop showing up.
Combine all the savings brought by digital distribution with how popular gaming has become, and it’s obvious how investing in it can pay off.
In addition, technology continues to evolve at a rapid pace. There’s a big chance we’ll soon see some new features that’ll decrease distribution costs even more. Google has already launched Stadia, a subscription-based gaming service, similar to Netflix. And there’s no need to say how profitable that can be.
The bottom line
From huge enterprises to indie developers, there’s so much opportunity to invest in gaming. And with everything we’ve said earlier in this post, it’s obvious that there’s no lack of potential investors. This means we’ll see more investors entering the sector and supporting new projects. With even more funding being available, only sky’s the limit for the gaming industry.