Video games have a lot to make noise about these days with all sectors of the industry showing signs of constant growth in the coming years. Whether it’s advertising, licensing rights, or content creation, video gaming is over a $100 billion industry that according to experts may still be in its infancy.
The video gaming market includes everything from software and hardware to the video gaming console and mobile apps. It’s an industry on hyper-growth mode, revenue numbers that keep climbing. For example, according to Garner Inc., a leading information technology advisory and research firm, the video gaming industry posted net sales of just under $80 million two years ago. Today, the industry is an over $90 million dollar engine that is expected to roar into next year with sales figures topping $110 million.
According to experts, video game sales alone represent almost $30 million in sales. In addition, more and more, people are choosing to purchase their games online instead of driving to the local gaming story.
“The majority of video game sales are now being generated digitally,” said Forbes Magazine reporter, David Ewait.
This is not surprising considering the history of the gaming industry. According to Ewait, the arcade was the origin of videogames. It was in this atmosphere that gamers could be seen playing in public, and even paying some money for the privilege. It didn’t take long for some of the early players in the video gaming market to take note. As early as 1967 when the first crude game console was introduced, gaming companies have seen the gold. Video games like Pong and Odyssey grabbed consumer’s interest, while companies as Sony, Nintendo and Game Boy took notice of that interest to help build a consumer demand that extends to nearly every demographic segment. They succeeded and now it would appear video games will show constant growth in the coming years.
“More than 150 million people nationwide play video games,” said Ewait.
In fact, video gamers not only play the games, the pay to play the games. Ewait explained that nearly three-in-four games spend an average of nearly $20 a month on everything from everything from a new online gaming application to a new Smartphone. According to a recent report by the Entertainment Software Association, the gaming population is also very diverse, with an almost 33 percent split between people over 36, those between the ages of 18-35 and those under the age of 18. With such a diverse target market to attract, the video gaming industry and manufacturers are also employing more people within the industry’s ranks.
According CNBC reporter, Chris Morris, more than 40,000 jobs are directly related to the gaming industry.
“There is clearly a hiring boom going on in the industry,” said Morris.
Morris explained that the number of people working within the gaming sector has risen on average just under 10 percent a year since 2005, with jobs occurring geographically balance throughout 34 states. In addition, the average video gaming employee earns slightly above $80,000 a year with the publishing companies paying even higher.
From consumer to worker, the path of the video gaming industry is made from a solid stone with plenty of lifespan to last awhile. In fact, whether it is a 45 year-old executive or a 19 year-old student, video gaming is part of most American’s lives, and as the video gaming industry continues to show growth through the coming years, it is safe to say it will be around for a long time.
By Vincent Aviaini