Gaming is the number one entertainment market in the world, not music, not movies, but gaming. It is only getting larger too, which isn’t too bad for a market that was teetering on the edge of destruction in the early 1980s.
Gaming is so popular nowadays that it is even having an impact on the business and financial markets. Below, we look at how gaming contributes to these markets.
The Impact of Gaming Innovation on Business and Financial Markets
Investment in gaming
If you’re into gaming, then you know that Microsoft has had a tough time with the Xbox. It is still the third best-selling console out of three. Sure, it sells millions of units, but the Xbox is severely lagging behind Nintendo’s and Sony’s console offerings.
Despite this, Microsoft believes that gaming is the future. Anybody keeping up to date with the gaming news over the last few years will know that despite the big downturn for Microsoft, the company is still investing heavily in gaming. In fact, Microsoft’s largest ever purchase was recently Activision-Blizzard, the producers of World of Warcraft and Call of Duty.
The level of confidence that Microsoft has in future gaming innovation is great for the business world. Companies are willing to invest in gaming products because, if you can get it right, no other investment will generate the same amount of return.
Take Fortnite and Epic, for instance. Sure, Epic has never really been hurting for money, but the proceeds that Fortnite rakes in have funded whole new areas that Epic has expanded into, giving them even more cash flow.
Even companies not traditionally associated with gaming, such as Amazon, are looking to get a slice of the gaming pie and opening their own studios. Lego and Disney, both of which previously outsourced their gaming development, are looking to develop a few products in house, because they believe that gaming is the future.
Obviously, not all investments into gaming will pay off. Microsoft, for instance, recently scaled back their investment into AR tech in the gaming world, and their Kinect product, which was produced for other industries, is no longer used for gaming. However, all these products have contributed to further development in the gaming world.
Gaming Tech is Used Often in Business Markets
Tech developed for use in gaming, such as VR, AR and Cloud gaming, is being adapted for use in the business world.
Well, none of this tech was developed primarily for gaming, but it is the area where it is used most heavily. Businesses are now taking the tech that gaming companies rely on and building upon it. For example, VR tech is being used in many industries, including medicine, tourism and real estate.
AI has also been used heavily in games recently. While not predominantly a gaming-related piece of tech, AI has been primarily used in the entertainment industry. The entertainment industry has helped to drive the development of AI. In turn, AI developments are contributing to the financial sector and other markets.
For example, AI can now quickly make decisions on investment opportunities, quick analysis of financial reports and the development of new business models. Obviously, they still need to have an actual person evaluate what is happening before any final decision is made.
Even payment systems developed for use in games have had some impact on business and financial markets.
Businesses Are Incorporating Gamification Into Their Products
Businesses are even using the idea of gamification to enhance their products and reach new audiences. Companies know people love the idea of gaming, so they are relying on gaming tech to drive interaction with their products.
For example, companies that deal with savings will provide benefits such as points for those that interact with their products, banks have also been known to provide digital incentives to those who reach their savings goals.
Companies often find that when they treat something like a game, particularly when they want a person to respond to their call-to-action, they often receive a lot more business. Just look at how many apps now include some sort of gamification, such as use streaks or reward points to drive engagement.
There Are Still Opportunities for New Games in Some Markets
The gaming market continues to grow, with the casino industry seeing particularly rapid expansion, especially in the United States. While investing heavily in AAA games can be challenging for business and finance markets, the online casino sector has been thriving.
The number of online slots available on AskGamblers has surged significantly in recent years, as more companies recognise the potential of this fast-growing niche. As the demand for diverse gaming experiences increases, many companies are strategically investing in this area, finding success and reaping the benefits of these investments.
Gaming Can Demonstrate the Stability of Markets
Finally, financial markets are looking at gaming as a way of determining their stability. Gaming is an experience that is intended to be carried out with disposable income. If the gaming market falls, chances are that people won’t have a lot of disposable income, which means other markets may fall soon after. If gaming businesses see a rise, most other markets will see a rise too.
In recent days, one of the biggest tests for the financial markets in the US has started to occur. Nintendo has announced their long-awaited Nintendo Switch 2. It is scheduled for release in June 2025, and people love the innovation in the new console.
Shortly after Nintendo’s announcement, Donald Trump announced tariffs of 47% on Taiwan, where the device is produced. Nintendo paused preorders in the US as a result, because the price in the US will need to go up by a considerable sum of cash.
Tariffs have been temporarily lowered to 10% but when preorders resume with the newly raised price, financial experts will likely be looking intensely to see how the market reacts, because the reaction there will impact nearly every other entertainment product subject to tariffs.
Final Thoughts
Gaming tech is impacting financial and business markets in multiple ways. Some of these impacts include gaming tech being incorporated into the products of these markets, as well as gaming innovation being a decent barometer of the strength of the financial markets, including highlighting some potential investment opportunities.
