The video game industry is on the road to growth in 2023 with the Canadian gaming industry ideally placed to take advantage.
Increased console sales and new games to drive growth
The factors contributing to increased growth have been identified by Seyon Park, Equity Research Analyst at Morgan Stanley. The sale of the next-generation of gaming consoles has been hamstrung by supply chain issues leading to empty shelves this year, but as the backlog eases, console sales are expected to experience high growth in 2023. The delays have also led to third-party gaming publishers pausing releases, so a range of new games is also likely to contribute to a growth spurt next year.
A relatively recession-proof sector
Data demonstrates that the gaming industry is not affected by economic downturns as much as other areas of the entertainment industry. This is due to consumers moving to home entertainment as a more economical option for expensive nights out. In 2008, for example, sales of physical console games and hardware grew to $21.4 billion from $17.9 billion the previous year. In 2009, the sector was still able to generate total sales of $19.7 billion.
However, some growth risks have also been identified, such as a reliance on existing content as opposed to developing new gaming innovations. To respond to this challenge, Ubisoft Montreal has continued to innovate through the introduction of popular games such as Roller Champions, the free-to-play video game released this year.
Another area of the entertainment industry that is benefitting from innovative game titles is the iGaming sector, which features a steady stream of new games. Carnival Cup, Legend of Perseus, and Loaded P.I. are just some of the new titles available allowing players to enjoy all the excitement in a Casino in Canada. In the same way as the video game industry, the iGaming sector is constantly innovating by developing new game titles which reflect themes that are popular in the wider entertainment industry, such as ancient mythology, the action-adventure genre, or sport.
The remarkable growth in mobile gaming
Of course, it is also possible to turn tried-and-tested games into new iterations. Ubisoft Montreal has achieved this through the Assassin’s Creed game franchise. Since the first game was released in 2007, there has been a steady stream of new releases such as Assassin’s Creed Valhalla. There are rumors that the popular game developed in Canada could soon be coming to Xbox Game Pass. The developer has also looked to keep things fresh by updating popular titles for use with Tom Clancy’s Rainbow Six Siege Mobile primed for release.
The move into mobile gaming reflects the rapid growth in the sector. Revenue from mobile games achieved a record total of $41.7 billion in the United States this year. Powered by the boom in smartphone usage and the technological advances in mobile devices, the global mobile gaming market is predicted to be worth over $173 billion by 2026. The switch from console gaming to mobile gaming is exemplified by over half of global video game revenue now being generated by games on mobile devices. With Apple shaking up the industry with its Apple Arcade mobile gaming and Netflix looking to become a major global player with its own mobile game offering, a range of mobile games is now essential for game developers.
As the video game industry looks to return to growth in 2023, the sector looks to be in great shape with projections anticipating a rosy future for video game companies. This is in no small part thanks to the rapid growth in mobile gaming, which Ubisoft Montreal is also looking to capitalize on.