Game is one of the fastest-growing industries since the beginning of the 21st century when the Internet helped connect gamers globally. So far the Game Industry is developing to a new stage where they can integrate Blockchain into their content game. Such integration will create an in-game economy and make things much more interesting than in traditional games.

Business Environment And Business Strategy

Game Market Size

According to the Newzoo report, the Game Industry is now estimated to be worth $192.7 Billion in 2021, which is an increase of 7.6% from 2020. Forecast by the end of 2022, Global Game Market will reach 203.1 Billion

With CAGR between 2020 and 2024 is 5.6%, recent forecasts are estimating the video Game industry to be worth $222.6 Billion by 2024, and 292.31 Billion by 2030.

Industry Analysis

Following WePC, Asia leads the way in terms of the volume of gamers. In a recent study by DFC Intelligence in End of 2021, they found that Asia accounted for 1.43 billion gamers out of a total of 2.8 billion gamers worldwide. Put another way 51% of gamers are based in Asia with gamers based in Europe taking place at 24.7% (or 692 million) of the total.

With CAGR from 2015 to 2021 approximately 5.77%. Global Gamer count up to 2023 is 3.13 billion and 2025 corresponds to 3.5 billion Gamer.

If classified by region, Asia is leading since 20216 so far and has the highest growth rate of all regions. Specifically, since 2016, the Asian region has grown 16.42%, the European region has grown 15.02%, Latin America has grown by 13.62% and North America has grown 15.47%.

Although Catch America has the lowest proportion of gamers in the world (9.8%), the game market has a growth rate only after Asia.

Game market forecast in 2023 in APAC, EMEA, Latin America and North America respectively is $124.65 billion, $53.26 billion, $58.67 billion, and $10.78 billion.

Game Revenue

Newzoo provides us with the Game revenue, with a CAGR of 9.91% from 2019 to 2021, expected 2024 to reach $116.4 Billion.

This is considered one of the industries with the largest marginal revenue growth in the world and it is clearly an industry with potential for growth and investment.

Investment Deal

The game industry’s M&A and funding activities are hotter than ever in Q1 2022. The announced deal value reached $98.7 billion, 5 times more than Q1 2021 and more than 6 times higher than Q4 2021. Much of the deal value in Q1 2022 came from Microsoft announcing that it intends to acquire Activision Blizzard for $68.9 billion and T2 to acquire Zynga for $12.7B.

However, the number of deals decreased by 7.8% compared to Q1 2021, which shows that a number of high-volume deals accounted for almost all of the deals in Q1 2022. Activity in Q1 2022 continued. Fast-paced but with macroeconomic difficulties has added complexity to transactions.

Why Are There So Many Deals In The Game Industry?

The biggest game companies have become more and more active in acquiring game studios and companies as the competition for talent has escalated dramatically in recent years. Competition comes from big technology and entertainment companies like Netflix and game publishers that are expanding globally, especially Tencent and NetEase.

The concept of Metaverse, along with the NFT and Game Blockchain, is also driving investment and industry-wide deals. The level of activity is unprecedented: The result of a perfect combination of factors coming at once.

Blockchain Game Fever

Metaverse and Blockchain-related deals continued to grow in 2021 and Q1 2022. In the first three months of the year, there were 38 different deals in this sector, with the smallest being $1m and the largest being $450 M.

The investment environment for this new field is still growing strongly, so I hope the investment performance of this new game will have a strong impact on the capital invested in Blockchain Game in the near future.

The APAC region accounts for 25% of all investments in Q1 2022, of which 45% of investments in the Blockchain and Metaverse fields are related to games. This is followed by North America with 37%, Europe with 16% and Africa and the Middle East with 3%.

Based on the funding landscape, if Blockchain Game successfully transitions to broader consumer appeal, the potential for a near-term boom is huge. Companies based in the US and APAC are taking advantage of the first and starting to establish their brands.

Verdict

The above is an overview of the global Gaming market, the numbers show strong growth potential in the context of games with blockchain applications. This application will increase the user experience and be the solution to the scaling problems of the game.

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Marcus

Coincu Ventures