The rise of online gaming and what it means for the industry

Online gaming has changed a lot over the past few decades, from cramping your friends in a basement for LAN parties to struggling with lag and connection issues to where we are today, stable and seamless connections (for the most part) Cross platform play and MMOs the industry is as social as ever.

This huge growth period has been made possible due to the technological advancements we’ve made over the past few decades, which have increased accessibility and evolved the gaming experience to better suit the preferences of most players, further increasing satisfaction.

In this article, we’ll take a closer look at the rise of online gaming and how this has affected the gaming industry as a whole, its ability to earn, the potential social aspects and what we should expect from the future.

The evolution of online gaming

As you have already seen, online gaming has come on in leaps and bounds in recent years, growing from what was a niche interest among a nerdy few to one of the most popular pastimes in the world. This all started with games like Doom and Quake, which introduced online multiplayer, first in the form of local play (LAN parties) before we pivoted to internet-based matchmaking, allowing for worldwide play.

This shift to internet-based matchmaking was made possible because of the improvement in internet speeds in the early 2000s, allowing for larger gaming communities to grow and develop into what they are today. This increased connectivity and accessibility saw a boom in the world of MMORPGs and FPS games, the main examples of each being World of Warcraft and Call of Duty respectively.

This gamification has also spread to the online betting world, with cooperative play, live chat and side games allowing for a more immersive experience, The next time you log on to an online casino and have a question, such as ‘What are sweepstakes?’, all you need to do is head to the online chat section and ask away – it’s that simple.

Services like Xbox Cloud Gaming and NVIDIA GeForce Now allow players to stream games without incurring the cost of high-end hardware, making the world of online multiplayer far more accessible while providing great value for money. These subscription services are fairly new but have the potential to reshape how we approach video game ownership and whether it is necessary to own discs at all.

The impact of online gaming on the industry

Online gaming has had a huge impact on the industry as a whole, reshaping how games are developed, updated and monetized, and with the rise of esports, this looks set to continue and even accelerate.

The live-service model and continuous content updates

Popular online games like Fortnite and Destiny 2 have used live-service models to stay relevant for years, giving them lifespans far beyond what was previously thought possible from video games. But with regular updates and ‘season’ refreshes, these games are made to look and feel completely new, re-engaging existing players while also attracting new audiences who may not have fallen into the target segment previously.

Microtransactions, battle passes and subscription models

Love them or hate them, the rise of in-game purchases has seen developers make more money than ever before, which can be especially beneficial for those releasing free-to-play games, such as Fortnite and Apex Legends, where they rely on cosmetic skins, catchy emotes and premium battle passes to provide a live service.

The esports revolution and competitive gaming

The rise of professional gaming and multimillion-dollar tournaments, such as those relating to League of Legends, Dota 2 and Valorant, means that there are now millions on the line for those with the skill to play against the best in the world. With sponsorship deals and much more to be earned on streaming platforms such as Twitch and Kick, online gaming has become a spectator event, just like football, rugby and tennis.

Social and cultural shifts in gaming

Gaming has changed a lot over the years, especially when we look at how people play and interact with their favorite games, giving rise to influencers and a new type of marketing aimed at streaming.

The growth of online communities

Discord, Reddit and other in-game chats have built dedicated gaming communities that center around specific games or even niche areas within games, allowing for social interaction and the development of cooperative and competitive gaming in a wide variety of games.

The influence of streaming and content creation

Platforms like YouTube and Twitch have turned gaming into an entertainment industry, giving rise to the influencer-gamer, which is extremely appealing for brands wanting to engage with younger audiences or those with very specific interests, such as technology or gaming itself.

Cross-platform and cross-progression gaming

Not so long ago it was unheard of for a game to allow cross play, when the console wars were raging and the PC community was gatekept it would have been a distant dream. Things aren’t like that anymore, with more and more games allowing cross play such as Fortnite and Minecraft the online gaming space is a social as ever.

The future of online gaming

The research into AI implementation in the game development industry shows that we can make significant improvements to a wide variety of aspects, including NPC behavior, matchmaking and providing personalized gaming experiences with minimal input.

As we continue this push into AI integration and creating a digital web of interconnected worlds, envisioned as being the metaverse, the natural next step feels as though it will involve placing a greater emphasis on VR and building more immersive worlds that look and feel much more real.

As part of this, it wouldn’t be surprising to see blockchain technology become more widespread, especially in these virtual worlds that may have their local economies, as seen in EVE Online. This could lend itself well to NFTs and decentralized models giving players a greater sense of ownership when it comes to their digital in-game assets.

Conclusion

Online gaming has dramatically changed over the past decade and it’s hard to predict where it’ll go from here, Social aspects of online games are becoming more integral to how they operate so in that sense the future seems bright for the industry.

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