How the Gaming Industry Affects the Global Economic Situation

The gaming industry has come a long way since its humble beginnings. According to some estimates, the industry has been valued at $184 billion at the start of 2023. Projections for the year 2025 put the value of this industry at $211 billion. Clearly, gaming has a big impact on the global economy, and it also had another mini-boom in 2019 and 2020. Casino games are also a massive part of this industry. In fact, some of the top online casinos in Australia at aussielowdepositcasino come from developing economies. Meaning, you don’t have to be based in the richest country in order to succeed in this business.

Land-based casinos also play a big role. They are appealing to tourists, and they generate a lot of jobs. If you ever wondered - how much do casinos contribute to local economies - you should examine local tax laws, and look into sponsorship deals. Additionally, gambling businesses, especially those controlled by the state, often use the proceeds for charity and to help the environment. Here we will focus on the gaming industry as a whole and examine the impact it has on the global economy.

Job Creation

In the US alone there are more than 260,000 people working in the video game industry. These aren’t the only jobs for developers. AAA companies have all sorts of gaming-related careers, as publishing a big title requires a lot of work. Game development alone requires a big team:

• Developers

• Animators

• Sound effects

• Voice acting

• Writing

• Testing and quality assurance

In smaller companies, more people collaborate on these roles, but big releases are an entirely different story. Luckily, even these smaller or indie developers get the chance to shine, and the industry is putting more effort to promote them. This is thanks to the mobile game market, as you don’t need a big team to produce a solid mobile game.

However, the industry is really competitive and the market is flooded. According to some estimates, 70% of indie releases are commercial failures. These failures aren’t always related to the lack of quality, it’s just that people don’t even get to see their games and these titles just get lost in the big online market.

Indirect Employment Opportunities and Sales

The economic impact goes beyond game development and sales. In order to enjoy this content gamers need modern hardware. In other words, these products also increase PC hardware sales and console sales. There are lots of companies that create products targeted at gamers.

• Headphones

• Keyboards

• Chairs

• Room accessories and decorations

• Clothing

• Health products

The list can go on, but the point is that this industry doesn’t exist in a vacuum. Moreover, there are lots of new positions and career opportunities that aren’t directly related to development. PR agents who need to maintain communication with the community. Lawyers that need to handle intellectual property. Cultural sensitivity editors, digital marketers, and social media experts are all involved in a single release to ensure success.

Professional Gaming and Streaming

Source: Unsplash

Career opportunities are also available within the consumer community. Many teens and young adults are serious about eSports, and devote a good portion of their daily lives to becoming professional gamers. This used to be a thing only in South Korea and in the United States, but other countries around the world followed. There are many big teams with big sponsorship deals that actively compete in gaming tournaments. Furthermore, you don’t even have to be a pro player in order to make a living.

Streamers are another good example. They play publicly, entertain their audience and receive donations. Many development companies actually hire streamers to do promotions on their stream. There are also YouTube content creators and bloggers. They talk about their favorite games, analyze them, and criticize them. They generate revenue through donations, ad revenue, or affiliate marketing.

Advantages of Using Digital Content

One of the reasons why gaming had such a boom is thanks to digital marketplaces. It’s a lot easier to produce and publish games for PC or mobile, as there is no need to concern yourself with logistics, shipment, and production of the physical product. This is also a reason why online casinos are on the rise. Owners don’t need physical space with arcade machines, where people have to wait in line for their turn.

Since entertainment has gone fully digital, it had a massive impact, and significantly reduced start-up costs. It’s also easier to secure funding for smaller projects through platforms like Kickstarter and Patreon. The gaming industry has become a complex ecosystem on its own, and it’s mostly fueled by the community.

Conclusion

This is a big industry and it has an incredible impact on the economy. It’s very difficult to say just how many jobs are out there simply thanks to the existence of video games. People are very passionate about this hobby. It’s not just a simple pastime, it’s their way of socializing, and it’s how they express their points of view. Many big companies are also pivoting or trying to penetrate this market. This is why the market will continue to grow, and develop.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes