The Convergence of Gaming and Entertainment: From Arcade to Metaverse

The first video game was created by physicists at Brookhaven’s National Laboratory and presented to the public in 1958 at its yearly event for visitors. However, the first commercially viable console that would hit the shelves, Atari, only came out in 1972. While scientists were required to create this technology, maybe it wouldn’t have become mainstream without the push of entrepreneurs from the entertainment industry, and what a push!

Here’s how the gaming and entertainment industries band together to keep players happy.

Technology of Fun

Albeit innovative, the first video game in history didn’t premiere new technologies. Instead, it was made possible by advancements in computing sciences, combining radar displays with other electronic devices available at the time. Here’s the secret of the gaming industry: the artful and creative combination of the latest technology developments. In fact, it has always been like that.

Atari’s Pong was a huge success, inspiring a commercial race for this market during the 1970s. However, arcade companies like Nintendo, Namco, and Williams Electronics overwhelmed customers, resulting in a crash of this market in the following decade. The decadence didn’t last long, though, and Japanese developers like Nintendo picked up this market right from where it stopped.

The 1990s were a busy period in the console market. A new commercial race took place, with titans like Sega, Nintendo, and Sony disputing every single player. Indeed, it was a revolutionary period for this industry, where innovation-driven companies invested in the first 3D titles, with much superior graphics and gameplay compared to their predecessors. During the same period, developers discovered a new medium for their games: PCs, where 3D games like Doom were a huge success.

The Rise of Online and Mobile Games

The online gaming industry also began to take shape in the 1990s, albeit limited by speed and availability. Once again, the internet allowed for collaboration between game developers and entertainment entrepreneurs, leading to the creation of the first online casinos.

As the internet got faster and computers more popular, the online casino industry grew to the colossal size it has today.  Nowadays, platforms like Hub88.io are all over the place, offering hundreds of games coming from the most traditional developers around the world.

The online gaming industry was valued at nearly USD 100 billion in 2023, and it is likely to grow at a CAGR of 18% by 2032. The mobile gaming industry, made possible by the creation of smartphones, is just as big, having been valued at USD 100.54 billion last year.

Cloud Gaming and the Metaverse

Electronic games grew bigger than their original devices. Nowadays, no one needs a console to play video games, thanks to cloud computing, which made cloud gaming viable. Cloud gaming works very much like Netflix, but for games. Indeed, the entertainment industry giant inspired developers and entrepreneurs from the gaming sector to follow the business model.  

Companies like Google, PlayStation, and Microsoft have been investing heavily in their streaming platforms. The cloud gaming market is rising fast, fueled by the competition between big techs and increased gamers’ adoption. More recently, the metaverse has opened new avenues for developers and entrepreneurs to explore.

Many consider the metaverse to be the future of the internet, which is made possible by ultra-fast internet and the wider availability of VR headsets and AR glasses. The metaverse provides a much more immersive experience, turning the internet into a 360-degree virtual world. Meanwhile, AR glasses can “project” virtual objects in real-life scenarios, such as in a Pokemon Go kind of interaction.

Although it wasn’t created specifically for gamers, it’s easy to understand why they are so excited about it. For the first time, gamers can enjoy multi-sensory gaming experiences, adaptive environments, and much more vivid collaboration with other players. NFT-based play-to-earn games are already very popular and will likely reach new heights in the metaverse.

Navigating the Market

However, companies need to do much more than simply release new titles to be successful. In fact, only 17% of mobile games released yearly achieve any success, while 83% fall into oblivion in less than three years. The birth mortality rate of indie games isn’t much better: only 30% of the titles can be considered commercially successful.

Indeed, it takes more than technology and a good idea to make a game succeed, be it for consoles, smartphones, the metaverse, or else. It takes a series of wise business decisions. Here are five steps to create a competitive new game.

Reading the Market

Before starting coding, companies need to know exactly who their target audience is to create titles that resonate. What kind of games is the target audience craving? It’s also necessary to understand what competitors are offering and find ways to create something unique, even if not completely new.

Business Models

The gaming business is still a business, which means that a company’s business model is just as important as the game itself. Will it be subscription-based, freemium, premium, or crowd-funded? There are many ways of monetizing a new title, and developers must have it clear in mind before creating a new game.

Budget

Then come some delicate questions: How much should a new game cost, and how long does it take from development to marketing? Companies must be realistic here and have contingency plans to compensate for delays and unforeseen expenses. It also requires business wisdom to prioritize the right tasks and allocate resources where they should be in order to improve efficiency, reduce costs, and boost revenue.

Developing and Testing

Only when plans, budgets, and deadlines are aligned can the development stage start. Typically, companies test new games both internally and with potential customers. The testing stage provides developers with valuable feedback to fine-tune gaming features, weeding out bugs and glitches.    

Marketing

Once the game is ready, it’s time to spread the word. Games don’t succeed only because they’re good; they also succeed because they have an efficient marketing strategy. This strategy includes social media campaigns to create hype and choose the platforms where the target audience will definitely see it.    

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