Is the Gaming Industry set to boom soon?
Team Veye | 28 Feb 2022
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.
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