Gaming in 2023: A Year of Change, with 2024 Set to Be Even Bigger
The gaming industry underwent significant changes in 2023. Microsoft navigated regulatory obstacles to acquire Activision Blizzard, Netflix ventured into cloud gaming, and NFTs transitioned from a passing trend to an integral technology reshaping gaming commerce.
Bartosz Skwarczek, CEO of G2A Capital Group and founder of G2A.com, the largest digital entertainment marketplace, shares insights into what 2024 might bring for gamers and companies alike. Will games become safer and more accessible? How will tech giants' acquisitions reshape the landscape? Here are five key trends to watch in the coming year:
1. Microsoft’s Activision Blizzard Deal Sets a Precedent
Microsoft’s acquisition of Activision Blizzard marks the start of a wave of mergers and acquisitions. With Big Tech flush with cash and seeking new content, other major deals, like EA potentially being acquired, could follow.
For gamers, this means titles like those from Activision Blizzard will likely join subscription services like Game Pass, making them more accessible. Microsoft’s willingness to experiment with distribution, such as releasing Diablo 4 on Steam, aligns with G2A’s mission of democratizing access to entertainment. However, this consolidation could lead to fewer dominant players in the PC gaming market, mirroring the console market, which may have mixed implications for gamers.
2. NFTs Evolve Beyond Speculation
While the NFT market has declined since its 2021 peak, it’s far from dead. The technology is finding practical applications for artists, collectors, and gamers. NFTs can serve as secure certificates of authenticity, power in-game economies, and even streamline gaming logistics.
G2A has embraced this trend with its G2A Geekverse marketplace for Web3 gaming, catering to players of titles like Axie Infinity and The Sandbox. The in-game NFT market is projected to grow significantly, but for this to happen, companies must focus on using NFTs to deliver tangible benefits, such as ownership or financial rewards, rather than treating them as standalone products.
3. The Challenges of Cloud Gaming
Netflix's entry into cloud gaming highlights the potential of streaming to make games more accessible by removing hardware barriers. However, the challenges that plagued previous attempts remain. Uneven internet speeds globally and limited infrastructure hinder widespread adoption.
Without a robust user base, services can struggle, as seen with Google Stadia, which failed due to a lack of games and players. For Netflix and others to succeed, they must build a sustainable ecosystem of content and gamers despite regional disparities in connectivity.
4. Cybersecurity Takes Center Stage
The shift to cloud gaming amplifies cybersecurity concerns. Fraudulent transactions and hacking pose threats to gamers and developers alike. TransUnion notes that gaming is among the top targets for digital fraud, with phishing scams endangering user data and funds.
Companies like G2A are tackling this challenge by prioritizing security, reducing fraud rates, and implementing AI-driven solutions. However, broader industry efforts are needed, including employee training and proactive cybersecurity measures, to safeguard the gaming community.
5. Gaming Becomes More Diverse
The gaming demographic is shifting, with women now making up 49% of the global gaming audience, a significant rise from the 1990s. G2A has seen a surge in female users, and the trend is expected to accelerate in 2024.
Despite this, game development remains male-dominated, particularly at senior levels. As studies show that diversity drives innovation and profitability, more companies are likely to prioritize inclusivity. G2A leads by example, with women comprising 40% of its workforce and 50% of its top management. The industry is poised to embrace more female creators and leaders, signaling a more balanced future.
Looking Ahead
2023 brought transformative changes to gaming, but 2024 promises even more growth and innovation. From major mergers to advances in technology and diversity, the gaming industry is entering a new era.