The Unstoppable Rise of the Gaming Industry

Advancements in technologies such as Cloud Computing, Artificial Intelligence, and Virtual & Augmented Reality have transformed the Gaming Industry to unprecedented heights.

The online gaming market has changed dramatically. The Gaming industry was worth more than 150 Billion back in 2020, just before the Pandemic hit. It is all set to reach 256 Billion by 2025. Increased customer participation, engagement, and subscriptions are increasingly establishing it as a promising bet. High-fidelity mobile gaming is on the rise, and today, E-sports alone enjoys a viewer base of 456 Million people. As a matter of fact, the revenue generated by the Gaming Industry is greater than the revenue generated by the Box-office, Music Industry, and all major Sports Leagues put together!

These are impressive figures, right?

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The online gaming and video game industry is more than just a booming industry – it has completely altered the definition of how we consume entertainment. At present, there are more than 2.3 billion active gamers around the world. It includes everyone from PC gamers to casual mobile phone gamers to console gamers (Play station, Xbox).

HOW DO PROFESSIONAL GAMERS MAKE MONEY?

Earning by playing video games was always thought of as a pipe dream. Outside of a small group of highly interested players and fans, the E-sports sector was still in its infancy. Competitive gaming was barely known outside of a core group of highly engaged players and fans.

In recent times, E-sports has skyrocketed in popularity like never before. As gaming’s zeitgeist has risen, so have the prospects to make a successful profession out of something that was once thought to be nothing more than a waste of time by many.

Generally, Prize money, salary, sponsorships, live-streaming, and video-on-demand material are the five main sources of income for professional gamers.

PRIZE MONEY

Prize money is the simplest and oldest way for a professional player to make money online. A player receives a portion of the prize pool if they place high enough in a tournament. After all, if an esports athlete or organization does poorly at a competition, they may lose money by participating. Tired of the insecurity that came with being a smaller-scale professional gamer, esports players began looking for options that offered greater stability and less reliance on prize money.

SALARY

Cloud9, Team SoloMid (TSM), and Team Liquid were among the first esports teams to form. Having a guaranteed living salary was a tremendous relief for professional gamers who had previously relied solely on prize money to make a living. Players could concentrate on doing well in tournaments without the added burden of potentially losing money due to competitive pay. Instead of being a competitor’s primary source of income, prize money was now an added benefit if a team did well.

Sponsorships, Twitch, and YouTube are the next three ways professional gamers can generate money, and they apply not only to esports competitors but also to individual content creators who focus on holistic enjoyment rather than pure performance.

SPONSORSHIPS

They are another popular and lucrative source of money for both professional players and streamers. Companies not associated with video games or esports began sponsoring these individuals, as well as teams and leagues, in growing numbers as esports players and streamers became more visible to the general public by gaining large fanbases. Sponsorships with high-profile players and teams are available from beverage businesses like Red Bull, Monster Energy, and Mountain Dew, as well as computer firms like Intel and AMD. In exchange, the groups and players promote their sponsors’ products on Twitch and social media.

TWITCH (live-streaming)

Twitch is the most popular streaming network, but it is up against Facebook Gaming and YouTube, which is a traditional VOD powerhouse.

Streaming is the most common way for non-competitive gamers to make a living in the video game industry. While streaming has expanded to encompass in-real-life (IRL) activities such as cooking, watching movies, or simply chatting, gaming was unquestionably the start of this quickly developing sector, and it continues to account for a major amount of overall traffic on streaming sites.

Twitch is the market leader, with over 72 percent of the market share. Becoming a partner, which allows channels to charge users a fee for access to content, is the most common way for streamers to make money on Twitch. While subscriptions are not required to watch normal streaming material, they do allow members to reward their favorite content creators and get access to personalized emotes, among other things.

YOUTUBE

Esports experts and streamers frequently upload short, edited versions of their Twitch streaming sessions to YouTube so that fans who can’t watch the stream live may still see it.

Another way many professional gamers monetize their material is by uploading VOD footage to YouTube. Many professional gamers have editors that can reduce an eight- or ten-hour broadcasting session into a ten- to twenty-minute YouTube VOD, allowing fans who can’t watch material in real-time (or for an entire session) to still consume content from their favorite creators.

Professional gamers have a variety of revenue streams available to them.

Professional gamers today are significantly more financially secure than those who tried to make a living just a few years ago. Thanks to the rise of esports and live-streaming of gaming material in recent years, there are no shortages of potential income sources for the modern gamer, with professional teams and leagues offering guaranteed salaries with benefits. Nowadays, you can even win money by playing your favorite childhood board games like ludo money game very easily without even investing much of your time. The days of parents telling their children that there are no jobs in gaming are long gone; nowadays, it’s a distinct possibility.

MOST POPULAR E-SPORTS TOURNAMENTS IN THE WORLD

People across the world enjoy professional E-sports tournaments, as they can be seen online in the comfort of one’s home. As a result, some of the Most Popular E-sports tournaments in the world nowadays get millions of viewers, more than any traditional sports games.

Here, we’ve compiled a list of some of the most popular E-sports tournaments in the world, which you can enjoy comfortably from your couch:

HONOR OF KINGS WORLD CHAMPION CUP

The Honor of Kings World Champion Cup is the highest-paying competition in the Chinese mobile E-sports ecosystems. Inspired by Riot Games’ League of Legends, Honor of Kings (HOK) is a quick-match mobile multiplayer online game. Honor of Kings has over 80 million daily active players and 200 million monthly active players, making it the most popular game in the world. With over $13.4 billion in revenue, it is the highest-grossing mobile game of all time and the most downloaded app globally.

EVO CHAMPIONSHIP SERIES

Tom Cannon founded the Evolution Championship Series, is an annual E-sports event that focuses solely on fighting games. The tournaments are entirely open and follows a double-elimination format. Contestants come from all over the world to compete, most notably Japan, as with Super Battle Opera. The first Evolution originally featured Battle by the Bay, a Super Street Fighter II Turbo and Street Fighter Alpha 2 tournament. In 2002, it changed its name to Evo. Viewership has increased with each subsequent tournament.

DOTA 2 “THE INTERNATIONAL”

The International is an annual E-sports world championship tournament for the video game Dota 2, hosted and produced by Valve. The International debuted at Gamescom in 2011 as a promotional event for the game. The tournament features 20 teams, with 12 based on Dota Pro Circuit final results and six more from winning regional playoffs in North America, South America, Southeast Asia, China, Eastern Europe, and Western Europe.

Since 2013, the tournament’s prize money has been crowdfunded through a battle pass system within the game.

FORTNITE WORLD CUP CHAMPION

The Fortnite World Cup is an annual E-sports competition based on the video game Fortnite, released in July 2017 by Epic Games.  Epic created a Fortnite variant and released it in September 2017 as Fortnite Battle Royale. Fortnite Battle Royale quickly gained popularity, and by June 2018, the game had 125 million players. SuperData Research estimated Fortnite Battle Royale’s total revenue in 2018 to be $2.4 billion.

LEAGUE OF LEGENDS WORLD CHAMPIONSHIP

The League of Legends World Championship is Riot Games’ annual professional League of Legends world championship event. Teams fight for the Summoner’s Cup, a 70-pound (32-kilogram) trophy, and a multi-million-dollar prize pool. In 2018, 99.6 million people watched the final, breaking the previous record of 97.6 million established in 2017.

The League of Legends World Championships has grown in popularity to become one of the most watched events. Every year, the event moves its locations to different major countries and regions.  

The real money gaming industry in India – An overview

Real money gaming is a growing segment in India, which occupies a unique position in the fortress of online gaming. The real-money gaming industry includes games such as rummy, poker, trivia, fantasy leagues, and much more.

Real money earning games: TRENDS & GROWTH RATE

The real money gaming industry is a 150 billion strong sector. It is expected to grow at a rate of 30%. In less than a decade since its establishment, there are more than 100 companies offering real money games in this sector. Online rummy operators lead the rankings, followed by online poker and fantasy league companies.

All India Gaming Federation’s CEO, Roland Landers revealed that India’s online gaming industry is currently worth around Rs 200 billion. The industry is taking advantage of the steady growth of the Indian gaming industry. The total gaming revenue of Indian online gaming portals is growing steadily at around 30-35%.

Forecasting the growth rate of this segment of the Indian gaming industry, Landers said, “Smartphone gaming is one of the biggest contributors to the online technology-based gaming industry for real money. By 2025, the industry’s gross gaming revenue (GGR) is projected to reach 1 billion Dollars (about 7.1 billion rupees) will be easily reached. Also, the    active monthly player pool in online mode is about 25 million. However, only about 10% of this pool consists of actively paying and investing players.”

According to one growth forecast, the online real money gaming industry can grow 3.5 times in about five years, maintaining a compound annual growth rate (CAGR) of 35%. Among the many factors, the availability of decent hardware along with cheap data are the most obvious ones.

Real money online games include arcade games like the 8ball pool and fantasy sports platforms like Dream11 and Mobile Premier League.

 It is this industry that AIGF seeks to regulate to establish uniform rules and recommendations for all players and operators.  

COVID-19 AND REAL MONEY GAMING (RMG)

Online real money gaming and fantasy sports betting also grew significantly during the COVID-19 pandemic. This is because the traditional gambling sites around the country closed down to limit the spread of the virus. Hence, to meet the gambling needs of most casino players and gamers, real money gaming i.e., online casino games and fantasy sports surged. This crossroads has significantly increased the user base of popular gambling sites. An increase of about 25% has occurred across major online casinos and by over 38% when it comes to playing poker.

Money Earning Gaming & Its Future

There are innumerable opportunities to contribute to this significant growth and expand one’s base through real money gaming. This includes huge marketing costs and a focus on making players feel comfortable in the gaming ecosystem. Currently, the number of users in this sector is growing at a rate of 50% annually. The aspiration and passion for real money gaming is driving many innovations in this sector. In the future, technologies such as virtual reality, augmented reality, and artificial intelligence is ready to shape up these real money games to give gamers a more immersive gaming experience.

Real-money games like online ludo and many other multiplayer games have evolved significantly in uplifting the reach and creating a collective base for the players. For instance, a game of poker was never accepted by the Indian consumers as much as it is now. Today, a large section of youngsters do not mind trying a hand at poker.

Playing real-money games of Skills

Real-money games of skills is one of the emerging sectors of the Indian economy, and it is pointless to have any apprehensions towards it. We Indians have a pretty long history of playing various home games including gambling. Culturally and sentimentally speaking, gambling’s  viewed as a vice in Indian society and branded as unethical or immoral.

In recent years, gambling and gaming are increasingly moving to “online” or “digital” routes, and in many ways, converging with each other. However, there is a serious dilemma associated with the growing “side effects” in gaming and gambling. People cannot distinguish online skill-based games from gambling.

Therefore, they began to use the two terms gaming and gambling interchangeably. This is quite problematic!  Many industry experts say that  real money games of all kinds should be  entirely stopped because they are a bit like online gambling!

Are apples and oranges the same!

In my opinion, comparing skill-based real money gaming with gambling-which requires only luck, is corresponding to pronouncing that apples and oranges are the same! It makes no sense. But why do I say so? First and foremost, in skill-based gaming, the vital aspect that any gamer might need to grasp will be the skills, techniques, and intensity, understanding of the precise sport he/she is playing.

Secondly, the inducement of game enthusiasts regardless of whether he/she is a novice or a pro — is to play a sport or input right into a gaming match for the fun part. The gaming atmosphere prospers on huge passion, engagement, and vibrancy, more than anything else.

A Quick to get rich

To get rich quickly anyone would go for any gambling sites for their need of money or greed. Furthermore, a certain amount of money is required to start gambling, so he/she will deposit it in some cases.

Basically in India wagers on a monetary basis are placed usually on online card games like teen Patti and poker. Therefore, taking part or playing these games which require money does not mean that person is a gambler.

A distinction should be made between a game which requires only “chance” and a game that requires true “skills”-given the present-day situations in India, in some states betting money on a game of chance is considered to be completely illegal. However, in many places or even in the court of law wagers placed on a game of chance is in fact, legal and can be legally defended in the court of law.

A game of “skill” is considered to be determined by how the player plays it by using his or her skills and knowledge and how he put it to use to succeed. Whereas, in a game of “chance” everything depends on the LUCK factor. Winners too are determined randomly whether you are playing via technology or manually.

Conclusion

In real-money games, cash rewards are paid in exchange for a player’s skill rather than from luck. These kinds of games are legal in most countries of the world, even in countries where online gambling is completely banned. We often confuse skilled-based games with games of chance, but for the sake of brevity and simplicity, it’s important to understand the difference between the two, especially if you are new to playing online.

The future of skill-based games is bright. As the world becomes fully mobile, the cash gaming industry is poised to respond by releasing great games for smartphones and tablets that offer the same features as web games a few years ago. As long as the legal field remains stable, people around the world should continue to have access to real-money games for years to come, despite opposition to something like Daily Fantasy Sports.

 

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