Gamecraft The State of Play: 2024 (Ep. 9)
100 snips
Jan 24, 2024 The hosts discuss the paradoxical state of the games business, comparing it to the post-pandemic video streaming industry. They explore the implications of increasing consolidation, the end of the ten year surfeit of cheap money, and the over-investment of private capital into studios. They also cover topics such as the evolving definition of gaming, challenges faced by gaming studios, and the impact of COVID-19 on valuation and growth. Additionally, they touch upon the challenges faced by the gaming industry in China.
AI Snips
Chapters
Transcript
Episode notes
Gaming's Mainstream Arrival
- The games industry has become mainstream, boasting a large and diverse audience.
- It's no longer a niche market, with revenues approaching $200 billion and serving billions of players.
Post-Pandemic Slowdown
- Despite market growth, the games industry faces a slowdown in revenue growth.
- Analysts predict 1-3% annual growth, causing concern about a potential peak during the pandemic.
Gaming's Streaming Parallel
- Similar to the streaming industry, gaming has experienced a surge in high-quality content, leading to overspending.
- This mirrors the streaming boom and subsequent pullback, raising questions about financial stability.