Investment grows in the gaming sector amidst stiff competition 

Games investment is performing well where the reports by Digi Capital claim in the months from January to September 2018, the total investment made in the sector was $3.8 billion, which was 50 percent higher than the full-year record of 2017. 

Market analytics by Digi Capital reveals the games deals exceeded $25 billion in the first three quarters of 2018, which indicated the top of the market as it happened in 2014 when the shares of gaming companies plunged immediately to the lowest levels.  

Since 2010 the cycle of such deals swung from boom to bust almost two times in the last ten years. The developers are making serious investments in the mobile and console / PC game sector. 

The highest investment in the last year was made by Tencent in the Chinese market where the games IPO fell by 90 percent to $1.1 billion from $17.1 billion.  

Snapchat said the mobile gaming industry was $77 billion in 2017 where it was difficult for players to install each game on their machines and they had to search for others to play with, hence, Investment grows in the gaming sector amidst stiff competition, 

Games investment is performing well where the reports by Digi Capital claim in the months. will be introduced which will engage the player in virtual competition.  

Growth and stiff competition in the sector

The video game industry grew with the introduction of new products and technology where competitive events are increasing.  

Greenberg states the trend will continue to grow with the increasing engagement of young players as video games are cheaper than cable TVs and watching cinemas in theatres.  

The gaming cartoonish looks and the pop culture elements have been attracting the young and teens. In the sector, the revenue was over $43 billion in 2018, which was up 18 percent from 2017. 

It was more than the projected total global box office collection – as per the data released by the Entertainment Software Association and The NPD Group. 

The indicators claim for the global box office the revenue published at the end of 2018 and the ticket sales at box office hit $41.7 billion, as per the comScore data by the Deadline Hollywood. 

The figure is more than the number for the streaming services estimated to be around $28.8 billion as per the report in Multichannel News.

Free games are the biggest challenge  

As the two top video gaming companies reported quarterly earnings, the shares of EA dropped 13 percent as the company cited intense competition in the space causing revenue miss for the third quarter of 2019. 

Similarly, Tate Tow Interactive which reported earnings in the last quarter fell 14 percent in June first week. Many gaming firms are feeling threatened by the presence of free-to-play games, which are widely popular and created heightened competition in the space.   

Such options are a great source of entertainment for the younger generation raising concerns where the Netflix CEO Reed Hastings said the Fortnite was more of a threat than TimeWarner. 

When YouTube was down for a few minutes in October 2019, many new entries tried to gain to entertain with the low barrier to entry.