Metaverse and blockchain boost North American digital gaming markets
New research shows that the North American digital gaming market is poised for growth as emerging trends, including the metaverse and blockchain technology, reshape the industry.
The digital gaming market is forecast to experience a surge in the coming years, with North America leading the way in revenue generation, closely following Asia-Pacific.
According to a new report on the North American digital gaming market for 2023, the industry is undergoing a remarkable boom, driven by the advent of the metaverse and the integration of blockchain technology, the building blocks of bitcoin (BTC) and other cryptocurrencies, into gaming.
The report highlights how the gaming landscape is being reshaped by technological advancements and emerging trends, including advanced gaming technologies, socializing within games, cloud gaming, and gaming within the metaverse.
Beyond the traditional concept of playing games, these trends have transformed the gaming market into a comprehensive ecosystem that encompasses viewing, attending virtual events, and content creation.
For instance, famous brands like Minecraft and Fortnite have started incorporating metaverse elements, allowing players to explore virtual worlds for in-game socialization.
Globally, the adoption of gaming within the metaverse is on the rise. A February 2022 study finds that over half of Gen Z gamers in the United States intend to make money in the metaverse.
This shift in consumer expectations has led to a growing demand for virtual stores within the metaverse, where gamers can browse and purchase products.
Another noteworthy trend is the momentum gained by blockchain gaming, which enables using non-fungible tokens (NFTs) and distributed ledger technology (DLT) for in-game character sales and virtual goods trading.
Active gamers count increasing
While the number of players has been steadily increasing, the United States has experienced a decline in consumer spending on video game products.
The global gaming industry is gradually growing, propelled by evolving consumer expectations, technological advancements, and new monetization models. The pandemic-induced digital and online gaming surge created recent trends, such as gaming in the metaverse.
Gaming companies have introduced new business models, including subscriptions, in-game purchases, multiplayer games, and virtual goods.
North America, a leader in gaming revenue second only to Asia-Pacific, witnessed billions of dollars in revenue in 2022. However, the report reveals decreased consumer spending on video game products in the United States.
The peak in consumer spending experienced in 2021 during the pandemic subsided in 2022 due to various factors, including the rising cost of everyday products globally, which led consumers to shift away from purchasing video game products.
Notably, gaming companies such as Sony and Microsoft observed a decline in the sale of gaming consoles, indicating reduced expenditure on video game products. The limited supply of new technologically advanced console hardware and a slow release of new gaming titles further contributed to the decline in consumer spending.
In another recent development, Nanjing City in China has taken a significant step towards establishing itself as a hub for metaverse technology. The city introduced the China Blockchain Technology and Application Innovation Platform to foster innovation and development in the metaverse space.
The platform seeks to leverage blockchain technology to drive the growth of the metaverse in China. By creating an environment that encourages collaboration and experimentation, Nanjing City aims to attract local and international companies to contribute to developing metaverse applications and technologies.
The metaverse can potentially revolutionize various industries, including gaming, entertainment, e-commerce, and social networking.