2. The Gaming Industry

1.1.    The Market Scale

The current state of the global gaming industry in 2018: Newzoo released the latest data. It is estimated that 2.3 billion players worldwide will spend $137.9 billion in games in 2018, which is an increase of 13.3%, or $16.2 billion, from the previous year. Digital games will account for 91% of global revenues, reaching $125.3 billion.

In 2018, mobile game revenue will grow by 25.5% to $70.3 billion. It means that mobile games account for more than half of the game’s revenue for the first time. Smartphones contribute 80% of it, or $56.4 billion, and the remaining 20% come from tablets. The console game is the second largest category in 2018, with revenues of $34.6 billion, while PC games will contribute $32.9 billion.

It is estimated that by 2021, game consumer spending will grow to $180.1 billion, with a compound annual growth rate of more than 10.3% between 2017 and 2021. Considering that the global game market revenue in 2012 was 70.6 billion US dollars, this made the 2012-2021 compound annual growth rate reach 11.0%. Maintaining a double-digit growth rate for 10 years is remarkable.

1.2.   Game 4.0

The development of the gaming industry has several important stages:

  • Game 1.0 – Entity game: People use the props and specific rules to settle the game and the points are settled. The rules and points are settled face to face by the players, and the players reach a consensus. For example: poker, chess, dragons and dungeons.
  • Game 2.0 – electronic game: With the development of computer technology, electronic game has been developed. The rules and rewards of the game are preset by the developers. In the meantime, there were some drawbacks such as the use of pirated games and cheating by players.
  • Game 3.0 – Online Game: With the development of the network, the game enters the era of network interoperability. Online games use centralized servers which can provide the game asset storage and game rules. In that way, the player’s asset security and rule transparency are difficult to guarantee. Each game is an isolated island of information, and the economic system cannot communicate with each other.

Today, Use blockchain technology to change the economic system in the game, rules mechanism, game asset storage. To realize game economy system interoperability, rule trust, asset uniqueness and asset security. The game will enter the game 4.0 era – game with blockchain.

1.3.   Preview of the Gaming Industry

Today, the gaming industry is already an important economy. The games that we are familiar with, such as LOL, DOTA2, CSGO, Overwatch, PUBG, Fortnite, WOW, etc., have attracted a large amount of capital inflows, and the events and peripheral products that related to those games have also formed a huge industry.

With the reshaping of the blockchain, the game equipment will become a real asset, the game token will also be truly valuable, and the rules of the game will be transparent and trusted. The blockchain will have a huge impact on the existing gaming system. It will quicken the pace of the gaming industry 4.0 era.