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Online Gaming: A RM1.3 Trillion Industry

Online Gaming: A RM1.3 Trillion

The video game industry continues to grow. In 2021, the number of gamers worldwide increased by over 5% from the previous year, with 3 billion players. The growth in player count has also resulted in continued growth for the streaming market.  Over 465 million watched e-sports in 2021, an increase of over 6% from 2020. Online and cloud gaming in particular say impressive growth in 2021, bringing in over twice the revenue as they had in 2020. The industry is showing no signs of slowing down. Increased connectivity and technological improvements are driving games into a much larger segment of the marketplace than they once enjoyed.

From hobby to a spectator sport

One of the first commercial video games, Pong, was built in an age when microprocessors were too expensive to be commercially viable. Games made using those were limited to running on the mainframes at universities and other businesses. Instead, the first video games used discrete logic chips. Now, not only are microprocessors readily available, but nearly everyone has them in their pocket. It’s no surprise, then, that gaming has gone from something only a lucky few university students could partake in, to something millions of people enjoy every day. But the enjoyment of games is no longer limited to the person playing.

The rise of the streamer

The rise of the streamer

As computers got more and more powerful, so too did the internet. Broadband connections allow gamers to download much larger games than ever before onto their computer in minutes. That same technology allows them to stream full-quality videos of themselves playing those games on dedicated platforms such as Twitch, or general video-sharing platforms like YouTube. As many Twitch streamer has learned, people enjoy watching entertaining personalities play interesting games. They enjoy it so much, that many streamers are able to make a living playing games for the amusement of others as well as themselves.

E-sports turns players (and games) into superstars

Video games are hardly the first games people watch others play. Physical sports drew large crowds as far back as Roman times, with spectators packing into large stadiums to watch chariot races, grappling matches, and other sports. It should come as no surprise that once word spread about the growing spectator market around video games, they too would make their way into the competitive arena. Large crowds now watch their favourite players compete in virtual matches in the world’s top video games. These players can become as famous, and earn as much, as any physical sports star can.

Viewership fuels sales

In the early days, players had to find out about games from friends or magazines. Now, thanks to the power of broadband, more people are getting into video games as spectators first. Even long time gamers found out about new games by watching their favourite streamers play or e-sports stars compete in them. This symbiotic relationship has helped lead to the explosive growth of the industry. As video game companies strive to create stream-worthy games and convince top players to stream themselves playing or e-sports leagues to host competitions, the industry is on target to continue growing alongside this new way of enjoying it.

What the next generation brings

The next generation of online gaming will be able to leverage hardware, software, and connectivity issues to create even bigger and more immersive experiences.

Larger and more expansive worlds

Online gaming first arrived in the era of dial-up internet. Technological constraints limited games to only a handful of players competing at the same time. Now, hundreds of players can meet each other in open worlds, or compete against one another in a battle royal. As technology improves further, those worlds will grow ever larger. There will be more of the game map to explore, and more players to encounter along the way.

More realistic environments

To the layman, modern games already look similar in fidelity to the movies of just a few decades ago. Technological enhancements, such as the recently released Unreal Engine 5 will allow developers to make games that bridge that gap, creating experiences nearly indistinguishable from those experienced at the movie theatre.  These new games will bring a deeper level of immersion to gaming, allowing players to feel as though they are in the action and provide even greater levels of the escapism that gamers have enjoyed for decades.

Enhanced immersion experiences

Technologies such as VR and AR are already taking increased immersion far beyond graphical enhancements. In fact, there are VR e-sports games that bridge the gap between physical sports and video games, requiring players to throw, punch, and dodge just as they would in real life. As new peripherals are developed, these virtual experiences will become even more like the real thing. Players will be able to physically feel virtual objects using haptic technology. Walk around with their legs using locomotion systems, and further immerse themselves in the game world.

The importance of connectivity

In the online gaming world, every millisecond of latency increases the chances that a player’s character will be killed or miss the game-winning goal. Streaming services are being created that will stream high-quality games from advanced hardware onto the most affordable of home hardware. But doing so will require not only lightning fast latency but large bandwidth capabilities to handle the video load.  Even worse than high latency are dropped connections. Unreliable internet connectivity can disconnect gamers from the server, dumping their character out of the game and costing them the game, or even prize money.

The importance of connectivity

In the online gaming world, every millisecond of latency increases the chances that a player’s character will be killed or miss the game-winning goal. Streaming services are being created that will stream high-quality games from advanced hardware onto the most affordable of home hardware. But doing so will require not only lightning fast latency but large bandwidth capabilities to handle the video load.  Even worse than high latency are dropped connections. Unreliable internet connectivity can disconnect gamers from the server, dumping their character out of the game and costing them the game, or even prize money.

Allo's commitment to quality connections

At Allo, we understand the importance of connectivity. In the modern world, doctors rely on secure, reliable, and fast connections to provide quality care to patients. Businesses rely on cloud platforms to manage nearly every aspect of their company. Digital content providers increasingly rely on internet connectivity to reach consumers. But we also know that the internet isn’t just for work.

Allo’s commitment to providing top-notch connectivity to the entire country extends to gaming. With Allo, you won’t have to worry about laggy connections and dropped service when you’re in the middle of a heated gaming battle. Whether you’re playing for fun, or to become the next big gaming superstar, Allo will keep you in the game. To find out more, contact us today.