A Look at the Impact of COVID-19 on the Gaming Industry

Over the past year, millions of people locked up at home have turned to gaming to keep them occupied. This isn’t just a passing craze; it represents a new era in video games.

As gamers turn to digital gaming platforms, there’s a growing appetite for more creative risk-taking. This is fuelled by all-you-can-eat (AYCE) game subscriptions such as Microsoft’s Xbox Game Pass and Apple’s Arcade.

1. Increased Social Interaction

Gaming culture is rapidly permeating the mainstream, with gaming proving an important social ice breaker. Gamers are often looking for new ways to socialize and build connections, says Dr. Linda Kaye, a cyberpsychologist at Edge Hill University.

This trend began in the 1990s, when the widespread adoption of the internet and cheap computer networking enabled a dramatic increase in multiplayer games that allow players to communicate with each other in real time. Typical games offer multiple modes of communication, ranging from text and image-based interactions to audio-visual communications. This variety of communication channels also enables gaming communities to form and grow.

A growing number of games, particularly multiplayer online role-playing games (MMOs), provide opportunities for gamers to form social bonds and establish strong emotional ties with fellow players. As a result, these relationships can have a positive impact on gamers’ well-being and help them overcome feelings of loneliness.

These relationships also enable gamers to share their high-level needs and emotions. For example, gaming may satisfy gamers’ desire for social recognition and affirmation of their achievements, which is a source of self-esteem.

It is a common concern that the amount of screen time children spend on games can lead to “gaming disorder” or other problematic behaviors. Although it is important to monitor the amount of screen time young people are engaging in, gaming is a form of social interaction that should not be substituted for face-to-face interaction.

In addition, a new study suggests that online social capital may mediate the relationship between in-game social interaction and gaming disorder. This indirect link was moderated by alienation in the second stage of the mediation process, such that the path from social capital to gaming disorder was stronger for more highly alienated individuals.

In order to maximize the social interaction that game developers can gain from their games, it is crucial to understand the psychological needs of gamers and find creative ways to meet those needs. In particular, the design of the social experience of a game must consider the emotional and social needs of gamers, which can strengthen their connection with the game and make them stay in the game for a long time.

2. Increased Spending

There’s no doubt that COVID-19 has had an impact on the gaming industry. It’s been a great lifeline for many people who have found themselves stuck at home due to the pandemic, and it’s also helped boost the sector in a number of ways.

For one, it has had a huge impact on video game revenue and consumer spending across the globe. The industry is expected to grow by over 23% in 2020, according to analyst firm Newzoo. The gaming market is expected to be worth $219 billion in 2024, up from $153 billion in 2021 and $175.8 billion in 2020, according to research from EA.

However, this growth hasn’t yet been sustained. The gaming industry has seen a decline in overall game sales over the past year, with revenue from PC and console games declining.

The good news is that mobile gaming has emerged as a bright spot in the global gaming market, and it’s set to continue growing with an estimated 4.4% year-over-year growth rate for the first quarter of 2021. This has been largely driven by the rising popularity of free-to-play games, which allow players to play without purchasing a full version.

Another bright spot for the gaming industry has been the shift to remote work, which has resulted in improved employee morale and greater productivity among staff members. A number of companies have shifted to this model, and data from Bentley University shows that employees are generally satisfied with their workplaces during the COVID-19 pandemic.

In addition to being a more efficient working environment, the remote work model has allowed gaming companies to maintain their product development and release schedules while still protecting their employees from the effects of the pandemic. Additionally, the shift to a remote working model has been particularly helpful for smaller developers and publishers, who can now focus on creating new content rather than attempting to maintain existing operations during the COVID-19 pandemic.

While the gaming industry hasn’t yet recovered from the impact of COVID-19, it’s still a highly lucrative industry with huge potential for future growth. As such, it’s important for gaming developers to ensure that they can take advantage of this opportunity. In particular, if they want to be a part of the gaming industry’s growth in the coming years, they should focus on creating mobile games that cater to a diverse range of player preferences.

3. Increased Productivity

COVID-19 has had a big impact on the gaming industry. While some elements of the gaming industry suffered setbacks, others have ridden out the storm and are now thriving once again.

During the lockdowns, millions of people took to playing video games as a way to escape boredom and isolation. Some players also said that gaming helped them cope with the mental effects of the pandemic.

While a few of the gaming companies that shifted to remote work struggled, the majority have remained profitable. Some have even seen revenue increases.

In fact, many video game companies are now leveraging remote working in order to maximize productivity and increase profits. They’ve adopted new technologies and operational efficiency methods that allow workers to be more productive from home, such as flexible hours, remote access to software, and the use of digital tools for business processes.

The most productive businesses have managed to minimize wasted time and keep their employees focused on the work at hand. This enables them to be 40% more productive than the average company.

However, this advantage can come at the cost of inequality between firms and economies. This is because the most productive firms will be able to invest in the latest digital technologies that help them reduce their costs and gain a competitive edge over less productive companies.

This could exacerbate the existing imbalance between large and small firms, especially in developing economies where the largest firms are often able to afford more expensive and advanced digital technologies. Alternatively, the shift to a digital economy could benefit those who are able to use it more effectively, resulting in increased productivity and economic growth.

Using an analysis of the United States and six major European economies, we find that there is potential for labour productivity growth to accelerate by about one percentage point over the period to 2024. This acceleration in productivity growth could be most significant in the healthcare, construction, information and communications technology (ICT), retail, and pharmaceuticals sectors.

4. Increased Safety

The gaming industry is a sector that has always been a popular pastime. It’s easy to see why – games are great for keeping people entertained, while also giving them the chance to socialise and build their communities. But when a pandemic like COVID-19 hits, the gaming sector can be hard to survive.

It’s not uncommon to see companies that produce products and services that are susceptible to COVID-19 voluntarily shut down or move operations out of the country to avoid exposure. Trade shows have been canceled or postponed, and major publishers like Bungie and Microsoft are encouraging their staff to work from home as a way to minimize the spread of the virus.

Some of the companies that have shifted their workforce to working remotely have experienced problems with the completion of movement orders, and some employees have been forced to leave their positions. However, the gaming industry has not been affected as much as other sectors.

There are a number of reasons why the gaming industry has managed to maintain its growth throughout the outbreak. Some of these are linked to the fact that video game companies produce almost all their goods digitally, meaning they can operate successfully without being limited by supply chain constraints or collaboration challenges.

Others relate to the fact that gaming has been found to be a good way for people to relax and relieve stress during lockdowns and other social isolation periods. One survey of European gamers suggested that 16% of respondents felt that playing games during lockdowns helped with their mental health.

The gaming industry is a sector that is growing rapidly, and it is expected to continue doing so in the coming years. It is tipped to reach a value of $321 billion by 2026, according to PwC’s Global Entertainment and Media Outlook 2022-26.

While there is no definitive proof that gaming has helped players deal with their emotional trauma, it is important to note that the gaming industry has been a vital support for many American communities during this period of unprecedented crisis. This includes both donating food to charities and opening up casinos for first responders to stay in during the pandemic.