Move Over Hollywood: Why Gaming Is the New King of Entertainment

As an analyst, I’ve observed that gaming behavior in the United States is quite robust and diverse, cutting across various age demographics. A sizable number of Americans frequently engage in mobile or console gaming, devoting a notable chunk of their leisure time to this activity each week. Among all generations, millennials stand out as the most active gamers, with some reporting weekly gaming sessions lasting over 13 hours.

In this op-ed piece, Yemel Jardi, co-founder of Decentraland and Executive Director of the Decentraland Foundation, contributes to CoinDesk’s GameFi Theme Week. Decentraland, established in 2020, represents the first decentralized metaverse operating on the Ethereum blockchain and offering a virtual social world experience.

The phenomenon of gaming is not limited to just the United States. In fact, it’s experiencing significant growth in countries such as China, Japan, and South Korea. This goes to show that the allure of gaming transcends borders and is an ever-expanding global phenomenon.

The tale doesn’t conclude there. The impact of the gaming sector transcends conventional limits, forging connections with other types of media. Young audiences are increasingly motivated to play video games based on TV programs or films, and they frequently yearn for game adaptations of their beloved media franchises. This intricate relationship between gaming, traditional media, and social media is paving the way for innovative audience engagement and revenue generation methods. It’s becoming clear that the future of entertainment isn’t merely about observing or listening, but also encompasses interactive, immersive, and social experiences that gaming uniquely offers. Traditional media must adapt or risk being overshadowed.

Evolution of different segments

Approximately half of the earnings in the gaming industry come from mobile gaming due to its accessibility through smartphones and the widespread success of free-to-play models featuring in-app purchases. Notable mobile games such as Roblox have a significant impact on younger generations, with 86% of Gen Z worldwide participating in mobile gaming, thereby influencing future consumer trends.

High-performance and exclusive games continue to dominate the gaming industry with PC and console platforms accounting for approximately half of it. These segments excel at providing immersive, visually stunning gaming experiences. Recent advancements in artificial intelligence are boosting GPU capabilities, leading to enhanced graphics and more captivating gameplay. This makes these platforms ideal for top-tier games and the introduction of new intellectual properties, ensuring a steady growth trajectory in this sector.

VR and AR gaming are rapidly advancing technologies, brimming with potential despite being in their nascent stages. These innovative platforms are spearheading the next wave of computing, drawing intense competition from major tech companies. Social VR experiences, like VRChat with its 20,000 daily active users, underscore the immense possibilities of these technologies. XR (Cross Reality) is viewed as the successor to traditional personal computers, and Meta and Apple are locked in a fierce battle for dominance – reminiscent of past tech rivalries like Windows vs. Mac and Android vs. iOS.

Distribution fragmentation and blockchain revival

Managing the dissemination of video games is essential as major corporations set up their own platforms for regulating game launches. The market for game stores is growing more diverse, with Steam, Google Play, and the App Store controlling substantial shares, while Xbox, Nintendo, Epic, and EA also operate their proprietary outlets. Publishers hold great influence in funding and nurturing game production. The blockchain sector is making notable strides in gaming, purchasing titles and studios to incorporate this technology. This development could usher in a new era of top-tier games, featuring genuine ownership of in-game items and enhanced compatibility between various games.

Role of AI in the gaming

Artificially Intelligent technology is poised to revolutionize the gaming sector by cutting costs and boosting innovation. Developing a game involves a diverse set of competencies such as art, scriptwriting, animation, and coding. AI can automate numerous aspects of this workflow, leading to increased productivity and cost savings. Notably, GPUs, which fuel AI technology, also play a crucial role in rendering games. This synergy is exemplified by NVIDIA’s market value, placing it among the most valuable corporations globally. Additionally, as AI assumes more responsibilities, gamers will have more leisure time to immerse themselves in gaming, an observation supported during the COVID-19 crisis.

From a crypto investor’s perspective, I’ve noticed an unprecedented transformation in the entertainment industry, spearheaded by gaming. It’s not just about playing games anymore; it’s about being part of captivating stories, building vibrant communities, and witnessing groundbreaking technological advancements. The fusion of gaming with other media forms and the integration of advanced technologies such as AI, VR, and blockchain is revolutionizing our experiences, making them more immersive, interactive, and personalized than ever before.

The entertainment industry’s future is deeply connected to the progress and expansion of the gaming sector. This relationship paves the way for a time when immersive digital interactions will dominate the scene. To remain competitive in this evolving landscape, traditional entertainment providers must embrace innovation and technology integration or risk losing the interest of upcoming generations.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.