Facebook
Twitter
LinkedIn
Instagram
Youtube

Is the Gaming Industry set to boom soon?

Team Veye | 28 Feb 2022

Is the Gaming Industry set to boom soon?

When Technology is penetrating every other industry, big or small, gaming could be no exception.  With the advent of the Next Generation of Technology, it is bound to Shape and reshape the Gaming Industry.

Earlier cloud services were used to only solve the problem of delivering extra data storage. Services like GeForce Now by Nvidia and Stadia by Google allow users to indulge in high-quality gaming without having to invest in heavy-duty hardware.

The trend that can define gaming is, it coming mainstream. Gamers are no more relying on niche or exclusive gaming platforms. Cross-platform gaming or developing games that can be played using multiple systems and consoles is not so uncommon now. Tik Tok and other social media platforms are changing viewing habits by releasing gaming content to a more mainstream audience through short term videos.

A growing consumer base, the 5G rollout and the increased time at home due to lockdowns have all helped gaming. With its continued stepping into the mainstream, changing consumer behaviour is also creating more opportunities like targeted advertising for sponsors.

In the latest PwC entertainment and media outlook report, the gaming industry had continued its growth in 2020. In 2019, Australians spent $3.175 billion on video games and exports, this grew by about eight per cent in 2020 and is expected to almost double in size by 2025, according to a new report.

Ironically though, in the past, the Australian gaming industry was not getting much support as compared to the UK, Canada and New Zealand, despite the global industry generating around $250 billion revenue in the past year.

However, a key government announcement could act as a spark. In May, last year, the federal government announced a Digital Games Tax Offset, which is a scheme that grants gaming businesses earning more than $500,000 a 30 per cent offset. This will come into effect in July 2022.

South Australia, New South Wales and Victoria were now offering an additional 10 per cent for game developers in their states. Queensland has been offering 15 per cent to developers in the sunshine state. This can act as an added stimulant and, in all probability, catch the eye of major international game developers in the industry.

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing reports. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.