You read that right – a whopping 80% of customers play video games. That’s four out of every five people you might interact with, be they your neighbors, colleagues, and why not even your beloved grandma?
Think about it: as smartphones and portable gaming platforms (such as the Nintendo DS, Nintendo Switch, and the Steam Deck) became ubiquitous among our peers, gaming stopped being a niche hobby relegated to basements and bedrooms.
From hypercasual mobile games you can play on your commute to deep, hyperrealistic, immersive virtual worlds you can enjoy at home, they’ve become a part of the lives of 4 in 5 people.
This widespread engagement creates a powerful avenue for businesses to reach new customers and build stronger relationships with existing ones. But finding your way through this new landscape requires a good understanding of the gaming world, its diverse demographics, and how people engage with games.
This article will discuss the possibilities arising from all this engagement, explore the gaming world’s demographics and spending habits, and uncover the opportunities and challenges businesses face in this new era!
80% of customers play video games: understanding the landscape
To effectively engage with gamers, we need to understand the gaming world’s diverse landscape. Newzoo’s comprehensive research, based on interviews with over 72,000 people across 33 markets, provides valuable insights into gamer demographics, platform preferences, and spending habits. Let’s see some of the key takeaways:
Demographics: beyond the stereotypes
Forget the outdated image of gamers as solitary teenagers glued to their screens, as the reality is far more diverse and inclusive.
According to their study, 81% of Gen Z and 71% of Millennials have reported playing video games in the last 6 months, spending an average of 7 hours and 20 minutes per week for the former and 6 hours and 50 minutes per week for the latter.
These younger generations are undoubtedly the most active gamers, but a significant portion of older generations also engage with games regularly. In fact, 60% of Gen X and even 42% of Baby Boomers report playing games, averaging 4 hours and 25 minutes, and 2 hours and 30 minutes per week, respectively.
This general engagement across age groups emphasizes the broad appeal of gaming and its potential to reach a diverse range of customers.
Platforms: mobile still reigns supreme
The gaming world offers a variety of platforms, each with its unique audience and characteristics.
Shocking no one ever, mobile gaming remains the most popular platform, accounting for the majority of players and revenue, thanks to its accessibility and convenience. Games like Candy Crush Saga (a match-3 game) and Pokémon GO are still favorites among millions worldwide, demonstrating the power of mobile gaming to reach a massive audience.
PC gaming, with its higher-fidelity graphics and more complex gameplay, commands a dedicated and passionate audience. Games like League of Legends, Dota 2, and Counter-Strike: Global Offensive have cultivated thriving communities and competitive esports scenes.
Console gaming, known for its comfortable living room experience and focus on social gaming, also boasts a significant market share, with popular titles like Fortnite, Call of Duty, and FIFA attracting millions of players.
Then, we have the emerging metaverse, which promises further to blur the lines between the virtual and physical worlds, creating new opportunities for engagement and innovation. Whether it will pan out like promised or fumble remains to be seen, though.
Spending habits: why gaming can be extremely profitable
While mobile gaming boasts a vast player base, PC and console gamers tend to be more invested financially. In fact, more than half of these players shell out between $5 and $25 each month on their gaming hobby, and a significant portion even surpasses that amount.
Furthermore, PC and console gamers are more likely to embrace pay-to-play (P2P) games compared to their mobile counterparts. Over a quarter of console gamers primarily, or even exclusively, engage with P2P titles, indicating a willingness to invest upfront for quality gaming experiences.
And despite a recent trend of playtime and revenue concentrating around fewer popular titles, the hunger for the next big thing in gaming remains strong. Almost a third of PC and console players actively seek out new and trending games, with over 80% of them consistently spending money on games each month.
This highlights the dynamic nature of the gaming market and the ongoing potential for growth and innovation.
Opportunities for businesses in the gaming world
Knowing that around 4 in 5 customers play video games, it’s easy to see how the gaming world presents itself as a goldmine of opportunities for businesses. Let’s see some ways companies can leverage the power of gaming to connect with their target audience:
Marketing and advertising
Think about it: millions of people spend hours immersed in video games every day, making it a prime location for businesses to get their message across.
Imagine your brand subtly appearing in a popular game, perhaps in-game ads that blend with the gameplay, or even sponsored streams where popular influencers showcase your product. There are many ways to reach gamers in a way that feels more natural and engaging, contrasting with intrusive banner ads of the past.
Product integration
Have you ever played a game and noticed a familiar brand subtly included in the storyline or environment? That’s product integration at its finest. It’s about blending brands and games in a way that feels natural and enhances the overall experience.
For example, picture your favorite sneaker brand appearing as a coveted item in a game, or a popular energy drink giving a character temporary superpowers. These subtle yet effective integrations can create powerful connections between your brand and gamers.
For this to work, one must understand that it’s not about slapping a logo on a virtual billboard, instead relying on advertisers to understand the game’s mechanics and audience, finding creative ways to tie everything up in a neat package.
Esports and streaming
Recently, esports and game streaming have exploded in popularity, creating thriving ecosystems businesses can tap into.
In fact, the same Newzoo study reports that, while 80% of customers play video games, 64% interact with them passively (by watching gaming-related content), and 35% engage in other ways (such as socializing in gaming communities, attending to in-person events, or discussing it with family and friends).
Sponsoring esports teams and events can put your brand in front of a highly engaged and passionate audience, with some events garnering millions of viewers. It’s a subtle but powerful way to build brand awareness and associate your company with the excitement and energy of competitive gaming.
Metaverse and Web3
While these paradigms are still in their early stages, they hold immense potential for companies looking to connect with gamers in innovative and engaging ways. It could very well be the next evolution of the internet, where developers use virtual worlds and decentralized technologies to create new interaction and commerce opportunities.
For example, developers could build a virtual storefront in a popular metaverse game (as Nike “just did it”) or leverage blockchain technology to create unique in-game assets that players can own and trade. The possibilities are nearly endless!
Conclusion
Newzoo’s research shows us just how big the gaming world is; millions of players, from different backgrounds and across various platforms, spend their time and money engaging with games. It’s a dynamic landscape and a goldmine of opportunity for businesses.
The key takeaway: your customers are already here, immersed in these digital worlds, but a question stands: are you ready to meet them where they are?
If you’re looking for a trusted partner to help you tread these waters, Main Leaf Games is here to help. With years of experience in game development and a deep understanding of the industry’s trends and technologies, we’re your one-stop shop for all your gaming needs.
Contact us today to discuss how we can build your upcoming masterpiece together!
