Gaming has emerged as a dominant force in the buzzing global entertainment landscape, transforming from a niche hobby into a mainstream phenomenon.
The evolution of the gaming industry isn’t just about the latest consoles or the most immersive graphics. That means big changes are occurring in the way people spend their time and money.
According to a comprehensive study by Visa Business and Economic Insights (VBEI)video gamers have proven to be a highly profitable consumer segment.
Their spending habits extend beyond digital purchases and reflect broader economic trends and opportunities that businesses can no longer ignore.
The booming video gamer economy
Important economic factors converge; Technicaland social forces will amplify the prominence of video gamers.
By the end of 2023, the global gaming market will generate an estimated USD 184 billion in revenue, and this figure is expected to reach USD 205 billion by 2026, close to the value of a mid-sized European economy such as Hungary. Thing.
Meanwhile, video game players are expected to reach 3.8 billion by 2026, accounting for almost half of the world’s population.
Several rapidly developing trends will strengthen the rapid growth of the video gamer economy, including the rise of the middle class, especially in densely populated emerging markets such as India, China, and Brazil.
Increasing affordability of leisure, economic surge digital economythe proliferation of high-speed internet, advances in mobile technology, and the shift to remote work will also play a role.
Asia is the center of gaming
by Latest data availableApproximately 1.48 billion gamers live in Asia, making it the world’s largest video game market.
This number is more than double that of gamers in other regions and more than gamers in Europe, Latin America, and North America combined.
of Asian gaming industry That number continues to grow due to the increase in smartphone users and the popularity of mobile games.
This huge Asian gamer base highlights the gaming industry’s global reach and economic potential. Companies that tap into this market can tap into a huge and engaged audience, further driving industry growth and profitability.
Diverse gaming demographics
The stereotypical image of gamers as young men is becoming increasingly outdated. Today’s gaming demographics are diverse and include men and women of various age groups.
For example, 38% of US gamers are between the ages of 18 and 34, 26% are between 35 and 54, and 21% are under 18.
gaming industry
This diversity highlights the universal appeal of video games. Video games now span multiple platforms, including PC, mobile, and streaming services, and cover genres from esports to strategy to fantasy.
Since 2019, active gamers have increased rapidly in all major markets. For example, in the UAE, the average monthly spending of video gamers increased from USD 2,014 in 2019 to USD 2,536 in 2023.
Such data reveals a consistent increase in financial engagement from gamers, making them an important demographic for companies to target.
E-commerce and video gamers: the perfect combination
Video gamer cards perform better than non-video gamer cards when it comes to online shopping and e-commerce. Across all markets, the average monthly e-commerce spend for video gamer cards is often several times higher than for non-video gamer cards.
Video gamers also tend to make more frequent purchases online and on e-commerce platforms, making about twice as many transactions as other cardholders. Given their propensity to live their lives online, it’s no surprise that video gamers have higher online spending and transaction frequency.
Research shows gamers will spend an average of 180 minutes each day on top gaming platforms in 2022, outpacing popular social media and streaming services.
Avid gamers often subscribe to premium content and invest in specific high-tech hardware and accessories, which are hallmarks of immersion in the digital world.
The role of economic growth
One of the drivers of the rise of the video gamer economy is the increase in leisure time, which is an essential effect of economic growth over the past 50 years.
As economies develop, average annual hours worked per person tend to decline, suggesting that people in these countries have more leisure time than they did 50 years ago.
This decade is expected to see strong economic growth, resulting in billions of consumers around the world having more leisure time and more time to play video games.
As the number of video gamers increases, they will become an increasingly valuable demographic for publishers and sellers. The video game industry will continue to expand to meet this demand, providing new opportunities for entertainment, social interaction, and even employment.
The importance of recognizing video gamers
Contrary to the common belief that most gamers are children, research shows that gamers constitute an eclectic and inclusive demographic segment that has significant economic and business impact. It has been. Both publishers and sellers need to be aware of this influential consumer segment and take advantage of it.
Fintech and payments provider Services provided by Coda Payments, like Codapay, play an important role in driving the growth of the video gamer economy.
Codapay provides API services that enable game publishers and other digital content providers to accept over 300 payment methods on their websites.
The Singapore-based unicorn raised US$690 million at a valuation of US$2.5 billion in early 2022, highlighting growing interest and investment in fintech solutions tailored for the video games industry. Did.
As part of a suite of solutions aimed at monetizing digital content worldwide. coda payment Work with a variety of payment methods including carrier billing, e-wallets, online banking, cash at retail stores, coupons, and traditional card payments to purchase mobile and online games, live streaming, video on demand, music streaming, and more. facilitate.
By providing seamless and diverse payment options, fintech solutions like Codapay make it easier for video gamers to make purchases within their preferred gaming platforms, contributing to the overall growth and success of the video gamer economy. Masu.
These innovative payment solutions are essential to capturing the immense potential of this rapidly growing market, as they cater to the unique needs and preferences of video gamers around the world.
Furthermore, integrating fintech into the video game industry opens new opportunities for game developers and publishers to effectively monetize their content.
By partnering with a payment provider like Codapay, you can expand your reach to users around the world, explore new markets, and increase your revenue streams. This symbiotic relationship between fintech and the video game industry will drive the future growth and evolution of the video gamer economy.
the future of gaming
There is no denying that the gaming industry is emerging as a dominant economic force. Extensive data from Visa Business and Economy Insights highlights the significant purchasing power of video gamers, whose economic impact extends far beyond digital purchases.
The economic impact of the gaming sector will further increase with the integration of fintech solutions, represented by companies such as Codapay.
As the gaming population grows and becomes more diverse, the gaming industry’s influence on the global economy will only increase.
Companies that recognize and adapt to this trend will be well-positioned to tap into video gamers’ spending habits and digital engagement to enter a lucrative market.
In this rapidly evolving landscape, the synergy between gaming and fintech offers exciting opportunities for innovation, growth and sustained success.
The rise of the gaming industry is a testament to the dynamic interaction between technology, consumer behavior, and economic development. As we move forward, recognizing the importance of this segment is critical for businesses looking to thrive in the digital age.
Featured image credit: Edited from freepic
