Kartik Garg is a globe-trotter with entrepreneurial experience that knows no borders. After stepping away from the family business, Kartik found his calling in the uneven economies of African markets. A few grueling but rewarding years followed, which have now culminated in a business presence in the middle-east, and a ferroalloys plant in a remote free-zone while backward integrating operations by mining in Africa. Kartik is also a prolific investor, dabbles in the crypto market, and spends his days automating start-ups and other ventures.
Back in the day, a typical day would see roads being choked with cars and people. But as the year of 2020 dawned upon us, we were all shut in our homes.
Along came the pandemic. Industries and businesses suffered, but there was one industry that flourished and grew exponentially.
The gaming industry.
The gaming industry received a horde of new users due to the Covid-induced lockdowns. There was a tremendous spike in people waking up to push notifications from their favourite games. More and more individuals starting becoming members of this growing choir.
The global gaming industry is projected to be valued at over USD 300 Billion by 2024, with over 18,000 startups currently operating in the gaming sector. Additionally, the current market size of the industry is USD 180-200 billion for video games alone. Over 400 million gamers in the world are from India.
All of this is a result of the combination of younger demographics, growing internet penetration, availability of affordable smart phones, and the ease of making transactions due to growing micro-payment platforms.
Not just this, as various models like the play to win, pay to play etc. enter the battleground, and with newer games emerging every day, the industry keeps growing and it’s no surprise that the investors want a piece of the pie.
Even the tech giants such as Google, Meta, and Apple have all made plans to enter the video game industry. And if recent statistics are anything to go by, let’s just say we wouldn’t be betting against these giants. It bodes well to say that the gaming industry is set to be the investor’s dream.
Games without players are like bones without flesh.
Gaming companies without investors, the same.
This is because the gaming companies need capital to fuel their marketing, product and community building. The capital infusion also allows companies to attract talent to the ecosystem, which helps drive innovation and entrepreneurship. And this is just the tip of the iceberg.
Which begs the question, why are more people investing their time into gaming? And will it keep happening?
Gaming is one activity that asks the user to participate in the world it has created. In books or movies, they’re taken along for the ride and left to interpret afterward, but in gaming, they’re a part of the journey. And that hits a chord.
To add to that, with models like the play to win, gamers have a chance now more than ever, to convert their passion into a thriving career path. In this model, they play contests or tournaments, pay for premium items or features to get an advantage over free gamers and earn real cash if they win.
And thus, the sector continues to attract big-ticket investments in 2022 and beyond. Gaming is now at an inflection point with greater investment and consumer traction.
Investors are pouring money into gaming companies as well as they benefit from a surge in online gaming sparked by the pandemic.
We’ve indeed come a long way since the days of casinos and arcade games, with fantasy, esports and platforms games all becoming big entry points for individuals. As the years went by, this hobby has expanded beyond the occasional frivolous afternoon.
Revenue generation in the present day gaming industry is dominated by the three major markets: Console, PC, and Mobile. With the advent of technology, Meta verse gaming has also been garnering attention in the past few years.
This had lead to the increasing total addressable market (TAM) & user count. What contributes to it also is its feasibility. Most games are on mobile devices that can be accessed in any weather, and in almost any conditions. Conversations are a by-product benefit of playing games in teams.
Games have also been successful in nudging the emotional, aspirational side of humans and while it might last for hours or days for the celebration, it happens in e-sports within minutes.
The gaming industry is definitely outgrowing and redefining itself at every turn, and this gives investors the tools and motivation to invest and engage in the industry.