E-Sport has become professional
There is no doubt, video games are no niche anymore, reaching broad audiences and bringing in billions of dollar in (advertising) revenue.
Almost all competitive games, from FIFA to LOL, DOTA2 or Starcraft have professional leagues now, with professional players that have management and sponsoring deals.
Further proofing the mainstream-nes is the Gamescom. Last year, well over 300.000 people came to Cologne to play games.
A ever-changing business
Although the industry is growing, it’s also a very dynamic one where you have to evolve to survive.
Smartphones had a massive impact on the game studios as free to play apps with in-app purchase completely changed how their business model works. It didn’t take long until this became common practice in major AAA titles for gaming consoles and PC as well, against the will of the players who feared ‚pay to win‘ would become the go-to approach. Fortnite is probably the biggest success story of this approach, though. It’s free to play, everyone can download it, but to get custom costumes, dances, and skins you need pay. Which many do. The developer Epic has made close to $4 billion from the game already
, but revenue is slowly declining as the hype as reached its peak. Now, everyone is turning their attention to cloud gaming as the new big thing that could happen to the video game industry.
Coming in hot: Apple Arcade
Another interesting approach comes from Apple, which beginning in fall, will offer a sort of subscription services for games called Apple Arcade
. It’s supposed to cost 4,99€ a month and will give you access to exclusive titles
by award-winning studios and game makers
The German market
To compete in these challenging conditions, you need money, And in Germany this also means public funding.
Just like with movies but to a much lower degree, the German government used to provide funds to game studios. At least for now
. In the federal budget for 2020, the 50 million EURO that were provided last year, were cut (in comparison: the German movie industry received 340 million EURO in 2018 through various public initiatives
). Why is unclear, especially as it’s also part of the agreement between SPD and CDU to help the German video game industry reach international level. Andreas Scheuer, Federal Ministry for Transport, Building and Urban Development, attended the opening ceremony at Gamescom and promised to fight for funding, but given his reputation, this is hard to believe.
Lastly, a link that I wanted to share for a while now that fits in perfectly today.