Picture: Provided
The worldwide video video games market continues to develop. In 2024, it’s anticipated to achieve a income of $282.30bn, with projections for 2024-2027 estimating that the market will develop at a decent annual fee of 8.76 per cent.
The projected market quantity by 2027 is estimated at $363.20bn and 1.5 billion customers, whereas the worldwide income generated by the trade is extra vital than that generated by the worldwide music and film industries mixed.
The MENA area is following this pattern, with the video video games market dimension within the space anticipated to develop from $6.32bn in 2024 to $10.69bn by 2029.
Remarkably, at 11.02 per cent, the compounded annual development fee (CAGR) for the trade within the space is increased than the worldwide common. That is because of the rise in disposable incomes, the penetration of cell phones and on-line gaming, and the youthful demographic profile of the MENA inhabitants.
Gaming trade rising within the UAE
Within the UAE particularly, the enlargement of the trade is supported by a rising curiosity from a number of private and non-private traders, in addition to the abundance of homegrown and international expertise obtainable within the area.
Nonetheless, whereas nonetheless rising, the normal online game trade is experiencing lowered margins throughout the board. It’s a mature trade, and as such, change and recent concepts are wanted to fight dynamics which have turn out to be out of date. The trade has to look critically on the points effervescent beneath the floor to proceed rising.
Conventional ‘free-to-play’ GaaS (video games as a service) video games, which have dominated within the final decade, are driving much less income than earlier than due to the mixture of a market saturated by new recreation releases and the elevated price of person acquisition because of the restrictive current modifications to privateness insurance policies.
The reducing margins are shortly reaching a important level and are quick turning into a extreme menace to the way forward for the trade.
The change that’s so desperately wanted will possible come hand in hand with two new applied sciences: blockchain and AI. Lots of the huge names within the trade appear to agree.
A current report revealed in December 2023 recognized that 70 per cent of prime gaming studios have been investing in Web3 gaming both instantly or not directly. That may be a vital share of a number of the world’s most outstanding gamers. However what’s it about blockchain and AI that makes them such an excellent match for video video games?
On the one hand, blockchain know-how will allow studios to create new, extra worthwhile, and extra sustainable enterprise fashions in video video games. That is significantly vital as a result of, as now we have seen, the normal Web2 GaaS mannequin is witnessing reducing margins.
On the similar time, we’re experiencing an AI revolution in video video games, which can profit all events.
For the person, AI opens the door to extra partaking video video games, with AI-driven character animation or pure language processing enabling a extra immersive expertise.
For builders, AI decreases manufacturing prices and permits new, extra personalized gameplay experiences, in addition to enhanced participant conduct experiences that may be fed again into the sport.
Area properly paced to leverage superior applied sciences to advance gaming
It’s value mentioning that the MENA area is especially well-placed to benefit from the alternatives that these applied sciences are bringing to the desk.
There was a rising curiosity in Web3 video games within the space, with the UAE quick rising as a worldwide blockchain hub. Initiatives just like the Dubai Blockchain Technique and the numerous government-backed blockchain-related tasks at the moment taking place within the space are testomony to this.
Globally, the confluence of blockchain and AI will energy participant engagement options in video video games. Common recreation components equivalent to user-generated content material (UGC) will obtain a lift, and creators can be prompted to construct and interact with digital collectibles greater than ever earlier than.
Learn: The MENA region is poised to be the next big mobile gaming oasis
AI may also catalyse interactions throughout game-play and gas social engagement in blockchain marketplaces, for instance by permitting gamers to speak with the digital characters they’ve acquired.
The gaming studios that leverage these new capabilities to their most benefit will break away from the restrictions of Web2 and encourage gamers to observe them into Web3, supplied that the standard and engagement worth of their video games are the fitting ones.
The author is the co-founder of Games for a Living.
