If you are interested in building a business focused on the video game industry, then you need to start with understanding your audience as well as market trends. In fact, understanding the video game industry would also be beneficial to you even if you don't have a product or service that is endemic to the industry, but are considering using the marketplace to advertise your brand.
Here is some important data to keep in mind, courtesy of a May 2018 report provided by TheGreatSetup, which spent 6 months gathering 500 essential data-points about the video game industry.
82 percent of the digital games market revenue goes to F2P games.
F2P is a fancy industry abbreviation for "free-to-play." The most popular free-to-play game at the moment is Fortnite, which generated $296 million in April across mobile, console and PC platforms. Premium-driven games and subscription-based games comprise the rest of the 18 percent of the market.
Currently, roughly $22 billion in revenue is projected to be earned in 2018 from F2P games and it is supposed to grow by 12 percent through 2022. As such, game developers should consider F2P as a long-term play and brands interested in associating with specific games should heavily focus on this growing area within the game playing space.
The average male gamer is 33 years old.
The average female gamer is just slightly older, at 37 years old, but since the video game industry is dominated by males, the male statistic probably will carry more significance for your brand, whether you are creating a product in the gaming world or marketing it to this particular audience.
It is always important to know the age of your audience. You wouldn't want to spend time advertising an old-age home to this demographic; however, it may make sense for a college debt restructuring service to go after this highly coveted age group.
43 percent of gamers in the U.S. buy their games on online retailers such as Amazon, Ebay, etc.
That is 14 percent higher than those who buy games through brick-and-mortar channels such as BestBuy. If you are in the video gaming space, then you should consider focusing more on a higher ranking on a site like Amazon as opposed to distribution and shelf location in stores.
The full game content monetization revenue covered 61 percent of the global revenue.
In the video gaming space, the purchase process doesn't begin and end with the acquisition of the game itself. There are many other ways for content developers to monetize their creations, including in-game purchases as a part of what is considered "additional content." That additional content is growing in significance over time and is expected to reach $7 billion in value by 2022.
As such, businesses should not only be considering how to capture an audience for the game itself, but also the content that will enhance and surround the game.