Game Platforms Industry

Future Trends

An industry trend refers to the direction in which a specific sector or market is evolving over time. These trends can manifest in forms, such as tech advancements, shifts in customer behaviour, regulatory change, or socio-economic transformations.

Industry trends can drastically impact the dynamics within a sector, altering competitive landscapes and operational processes. They can drive innovation, influence business strategies, create opportunities for growth, but can also pose potential risks and challenges.

We have identified trends likely to impact the industry vertical over the next decade:

1. Increasing demand for Cloud Gaming: Cloud gaming is growing in popularity, with consumers increasingly looking for convenient, low-cost ways to access gaming content. As the technology continues to improve and become more widespread, cloud gaming could have a significant impact on the game platforms industry. Cloud gaming platforms allow users to access gaming content without having to purchase expensive hardware or software. This means that more people can access gaming content, and it could also drive down the cost of gaming. Additionally, cloud gaming could reduce the need for console and PC gaming, as users can access content with their existing internet connection.

2. Growing popularity of Mobile Gaming: Mobile gaming is becoming increasingly popular, and by the end of the decade, it’s estimated that mobile gaming will be the most popular form of gaming. Mobile gaming offers the same level of immersion as console and PC gaming, but with the added convenience of being able to access games wherever you are. Mobile gaming is also much cheaper than console or PC gaming, as users don’t have to purchase expensive hardware or software. This could make mobile gaming the preferred choice for many consumers over the next decade.

3. Rise of Augmented and Virtual Reality: Augmented and virtual reality technology is rapidly evolving, and by the end of the decade, it’s likely that these technologies will become mainstream. Augmented reality and virtual reality are immersive and engaging, and they could revolutionise the gaming industry. These technologies will also require new gaming platforms, which could have an impact on the game platforms industry.

4. Growing popularity of eSports: eSports is becoming increasingly popular, and it’s estimated that by the end of the decade, the global eSports market will be worth over $2 billion. eSports requires specialised gaming platforms, such as streaming services, which could have an impact on the game platforms industry. Additionally, the growth of eSports could lead to the development of specialised game platforms, such as dedicated eSports gaming consoles.

5. Growing demand for Streaming Services: Streaming services, such as Netflix and Hulu, are becoming increasingly popular, and this trend is likely to continue over the next decade. Streaming services are convenient and affordable, and they could have an impact on the game platforms industry. Consumers may be increasingly likely to opt for streaming services over dedicated gaming consoles, as they offer the same level of convenience and affordability.

6. Growing demand for Indie Games: Indie games are becoming increasingly popular, and it’s estimated that by the end of the decade, the global indie games market will be worth over $14 billion. Indie games are typically cheaper than mainstream games, and they’re often accessible on multiple platforms. This could have an impact on the game platforms industry, as more consumers may opt for indie games over mainstream titles. Additionally, indie games may require specialised gaming platforms, which could create a new market for game platforms.

Industry Size

The global game platforms industry is estimated to be worth over $100 billion. This includes console, PC, and mobile gaming platforms, as well as virtual reality and augmented reality gaming platforms.

Console gaming platforms are the largest segment of the global game platforms industry with an estimated market size of $60 billion. This includes the sales of hardware like consoles, controllers, and the software and content associated with them. This segment is largely dominated by the three major console providers: Sony, Microsoft, and Nintendo. These companies dominate the market due to their established brand recognition, their extensive software libraries, and their ability to maintain a long-term product cycle.

PC gaming platforms are the second largest segment of the global game platforms industry, accounting for an estimated $20 billion in annual revenue. This segment is dominated by Steam, which has a near monopoly on PC gaming distribution. Other major players include Origin, GOG, and Uplay. In addition to the sale of hardware, this segment benefits from the sale of digital content such as games, downloadable content, and in-game purchases.

The mobile gaming segment is estimated to be worth over $10 billion. This segment is dominated by Apple and Google’s app stores, as well as third-party stores like Amazon. Mobile gaming is popular due to its convenience, low cost, and wide accessibility.

The virtual reality and augmented reality gaming segments are estimated to be worth around $5 billion. This segment is still relatively small, but is growing rapidly as new technologies and hardware are released. Major players in this segment include Oculus, HTC, and Sony.

Overall, the global game platforms industry is estimated to be worth over $100 billion. Console gaming platforms remain the largest segment, but PC gaming and mobile gaming are both growing rapidly. Virtual reality and augmented reality gaming are still relatively small but are gaining traction.

Supply Chain

An industry supply chain is a network of suppliers, manufacturers, distributors, retailers, and customers that creates and delivers a product. It includes sourcing, production, packaging, storage, transportation, and delivery, with each step adding value.

A streamlined supply chain is essential for competitiveness, affecting cost, speed, availability, and customer satisfaction.

The gaming platform industry is a large and complex supply chain that is constantly evolving. It involves a variety of different players, from the developers and publishers who create the games to the hardware companies that produce the consoles, to the retailers who sell them.

At the beginning of the supply chain is the game developers and publishers, who create and market the games. They are responsible for licensing the game, developing the story and gameplay, and ensuring that the game is compatible with the various platforms. They also work with the hardware companies to create special versions, such as the Xbox One X or the PlayStation 4 Pro, which have enhanced graphics and performance capabilities.

The next step in the supply chain is the hardware companies. These companies design and manufacture the game consoles, such as the Xbox One X and the PlayStation 4 Pro. They also design and create all the necessary peripherals, such as controllers, headsets, and other accessories.

Once the hardware and games have been developed, they are sent to the retailers, such as Best Buy, Target, and Walmart. These retailers are responsible for stocking and selling the games and consoles, as well as any accessories that go along with them. They also provide customer service and support, both in-store and online.

The last step in the supply chain is the consumers. Consumers are responsible for buying and playing the games, as well as providing feedback and reviews to the developers and publishers. This feedback helps to shape the future of the gaming industry, and it is essential for the success of the industry.

Overall, the gaming platform industry is a complex and ever-evolving supply chain. It involves a variety of players, from the developers and publishers to the hardware companies to the retailers. At the end of the chain, however, are the consumers, who are ultimately responsible for driving the success of the industry.

Industry Ecosystem

An industry ecosystem is a network of interconnected organisations, suppliers, distributors, customers, competitors, and regulators—that create and deliver a product. Entities collaborate and compete to meet customer needs and drive innovation, impacting a business’s competitiveness and profitability.

The ecosystem also includes support businesses like marketing agencies and freight carriers. Understanding it helps identify market strengths, weaknesses, opportunities, and threats.

The game platforms industry ecosystem is vast and complex, comprising a multitude of stakeholders, suppliers, distributors and customers. It is an ever-evolving environment, with the introduction of new technology and platforms driving continual change.

At the centre of the ecosystem are the game developers, who create the content that drives the industry. They are the primary suppliers to the ecosystem, and are typically either independent or part of larger organisations. The developers are supported by a host of other suppliers, including the hardware manufacturers, software providers, game engines, and middleware providers.

The games then move to the distributors, who are responsible for getting the games to the customer. These distributors can be either physical retailers, such as video game stores, or digital distributors, such as Steam or the various app stores.

The customers of the ecosystem are the gamers. This group is incredibly diverse, and is continually growing as new gamers enter the market. The gamers are the ones who ultimately purchase the games from the distributors, and also are the ones who play the games.

Regulatory agencies also play an important role in the game platforms industry ecosystem. These agencies regulate the industry to ensure that games are safe and adhere to certain standards. These agencies can include the Entertainment Software Rating Board (ESRB), the Federal Trade Commission (FTC), and various regional organisations.

Finally, there are a number of other stakeholders that play a role in the game platforms industry ecosystem. This includes the media, which helps to promote the games and the industry as a whole, as well as streaming services, such as Twitch and YouTube, which allow gamers to share their experiences with others. Additionally, there are also various organisations that exist to promote the industry, such as the International Game Developers Association (IGDA).

Key Performance Indicators

Key Performance Indicators are important to any business operating in the sector as they help measure progress towards achieving organisational goals and objectives. The KPI’s reflect strategic performance goals, offering crucial insights on operational efficiency, marketing metrics, sales revenue, customer satisfaction, and overall business performance within the industry.

Below is a list of KPI’s we have identified as being relevant to this vertical:

• Average Revenue per User (ARPU): ARPU measures the total revenue generated per user over a given period of time. It is calculated by dividing total revenue by the total number of users. ARPU = Total Revenue / Total Number of Users
• Average Revenue per Paying User (ARPPU): ARPPU measures the total revenue generated per paying user over a given period of time. It is calculated by dividing total revenue by the total number of paying users. ARPPU = Total Revenue / Total Number of Paying Users
• Retention Rate: Retention rate measures the percentage of users who return to the game platform after a certain period of time. It is calculated by dividing the total number of returning users by the total number of users. Retention Rate = (Total Number of Returning Users / Total Number of Users) x 100
• Monthly Active Users (MAU): MAU measures the total number of users who access the game platform during a given month. It is calculated by summing up the total number of users who logged in during that month. MAU = Total Number of Users Logged In During a Month
• Daily Active Users (DAU): DAU measures the total number of users who access the game platform daily. It is calculated by summing up the total number of users who logged in during a day. DAU = Total Number of Users Logged In During a Day
• Average Session Duration (ASD): ASD measures the average length of time a user spends on the game platform during a single session. It is calculated by dividing the total amount of time logged in by the total number of users. ASD = Total Amount of Time Logged In / Total Number of Users
• In-app Purchases (IAP): IAP measures the total amount of money spent by users on the game platform. It is calculated by summing up the total amount of money spent in-app. IAP = Total Amount of Money Spent In-App
• Cost per Acquisition (CPA): CPA measures the cost of acquiring a single user. It is calculated by dividing the total cost of acquiring users by the total number of users. CPA = Total Cost of Acquiring Users / Total Number of Users
• Conversion Rate: Conversion rate measures the percentage of users who make a purchase on the game platform. It is calculated by dividing the total number of paying users by the total number of users. Conversion Rate = (Total Number of Paying Users / Total Number of Users) x 100
• Customer Lifetime Value (CLV): CLV measures the total value of a user over their lifetime. It is calculated by multiplying the average revenue per user by the average length of user engagement. CLV = ARPU x Average Length of User Engagement
• Monetization Rate: Monetization rate measures the percentage of users who make a purchase on the game platform. It is calculated by dividing the total number of paying users by the total number of users. Monetization Rate = (Total Number of Paying Users / Total Number of Users) x 100
• Cost per Install (CPI): CPI measures the cost of acquiring a single user. It is calculated by dividing the total cost of acquiring users by the total number of users. CPI = Total Cost of Acquiring Users / Total Number of Users
• User Engagement: User engagement measures the level of user interaction with the game platform. It is calculated by dividing the total number of user interactions by the total number of users. User Engagement = Total Number of User Interactions / Total Number of Users
• Revenue per Install (RPI): RPI measures the total revenue generated per user acquired. It is calculated by dividing the total revenue by the total number of users acquired. RPI = Total Revenue / Total Number of Users Acquired
• Churn Rate: Churn rate measures the percentage of users who stop using the game platform after a certain period of time. It is calculated by dividing the total number of users who stopped using the platform by the total number of users. Churn Rate = (Total Number of Users Who Stopped Using the Platform / Total Number of Users) x 100

Porter’s Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter’s Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

• Competitive rivalry: This measures the intensity of competition within the industry.
• Supplier power: It assesses the ability of suppliers to drive up the prices of your inputs.
• Buyer power: This examines the strength of your customers to drive down your prices.
• Threat of substitution: It evaluates the likelihood that your customers will find a different way of doing what you do.
• Threat of new entries: This considers the ease with which new competitors can enter the market.

Through this analysis, businesses can identify their strengths, weaknesses, and potential threats, thus enhancing their competitive strategies and securing their market positioning.

Intensity of Industry Rivalry

The game platforms industry is highly competitive and has seen a significant increase in competition over the past few years. The major players in the industry are Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s Switch. All three of these companies are constantly competing to attract the most consumers and offer the best features and services. As a result, there is a high degree of price competition, as well as technological and product innovation. These companies are also constantly trying to outdo each other in terms of exclusive game titles, online services, and hardware features. This intense rivalry has led to a highly competitive environment in the game platforms industry.

Threat of Potential Entrants

The threat of potential entrants into the game platforms industry is relatively low. This is due to the fact that there are significant barriers to entry into the industry. The main barriers are the high costs associated with research and development, as well as the need to have established relationships with software developers and game publishers. Additionally, the established players in the industry have significant brand recognition and customer loyalty, which can make it difficult for new entrants to gain a foothold in the market.

Bargaining Power of Suppliers

The bargaining power of suppliers in the game platforms industry is relatively low. This is due to the fact that there are numerous suppliers of the components required to build game consoles. Additionally, the suppliers are highly specialised and do not hold much power in the market. This is due to the fact that they are not able to switch their focus to other industries and are reliant on the game platforms industry for their business.

Bargaining Power of Buyers

The bargaining power of buyers in the game platforms industry is relatively high. This is due to the fact that there are numerous players in the industry and buyers have the option to switch between different consoles. Additionally, buyers are able to compare prices and features of different consoles and can choose the one that meets their needs. As a result, buyers are able to exert a significant amount of bargaining power in the industry.

Threat of Substitutes

The threat of substitutes in the game platforms industry is relatively low. This is due to the fact that there are few viable alternatives to consoles. The main alternatives are PC gaming and mobile gaming, but these have not been able to match the features and capabilities of consoles. Additionally, the game titles available on consoles are often exclusive and are not available on other platforms. This makes it difficult for substitutes to gain traction in the market.

PEST Analysis

A PEST analysis evaluates key external factors affecting an organisation:

• Political: Government policies, regulations, and political stability
• Economic: Economic conditions like inflation, interest rates, and growth
• Social: Societal trends, demographics, and consumer attitudes
• Technological: Technological innovation impacting operations and consumer expectations

Reasons to use a PEST analysis:

• Environmental Scanning: Assesses external factors shaping the business
• Strategic Planning: Identifies opportunities, threats, and aligns strategies
• Risk Assessment: Highlights risks for proactive mitigation
• Market Analysis: Provides insights into trends, behavior, and gaps
• Business Adaptation: Helps adapt to changes in preferences, regulations, and technology

Below is the PEST analysis for this vertical:

Political

The global game platform industry is highly regulated by governments and public authorities. Governments have the power to set the rules and regulations for the industry, including how the games can be marketed and distributed, as well as the type of content that is allowed. This means that game platforms must comply with the laws and regulations in each country they operate in. In addition, taxes and tariffs may be imposed on the industry, which can significantly impact the profitability of the business.

In the US, the Federal Trade Commission (FTC) and the Entertainment Software Rating Board (ESRB) are responsible for regulating the industry. The FTC oversees the advertising of video games, ensuring that ads are not misleading or deceptive. The ESRB is responsible for rating video games based on their content, providing a guide for parents about what is appropriate for their children.

Economic

The game platform industry is highly dependent on economic factors. As a consumer-driven industry, the demand for video games is largely determined by the health of the global economy. When the economy is doing well, people have more disposable income to spend on video games, which drives up demand. Conversely, when the economy is weak, people tend to spend less on discretionary items such as video games.

The cost of developing a game is also affected by economic conditions. As the cost of labour and materials increases, the cost of developing a game increases as well. This can have a significant impact on the profitability of the industry, as game developers must pass on the increased costs to their customers.

Social

The game platform industry is highly dependent on social trends and consumer preferences. The type of games that are popular and the platforms that are most successful are largely determined by what consumers want to play. Social media platforms are also important for the industry, as they help to spread the word about new games and platforms.

In addition, the industry is affected by changing attitudes towards gaming. As gaming becomes more mainstream, more people are playing video games, which increases demand for the industry. However, there is still a stigma attached to gaming, and some people may be reluctant to purchase games due to this stigma.

Technological

The game platform industry is highly dependent on technological advances. As technology improves, game developers are able to create more realistic and immersive games. This can lead to increased demand for the industry, as people are drawn to the improved graphics and gameplay.

In addition, the industry is heavily reliant on the internet. As internet speeds increase, so does the quality of online gaming. This has allowed game developers to create more complex and engaging online experiences, which has helped to drive up demand for the industry.

Finally, the industry is also heavily reliant on mobile technology. As smartphones become more advanced, mobile gaming has become more popular. This has allowed game developers to create games specifically designed for mobile devices, which has helped to increase demand for the industry.

Regulatory Agencies

Government and regulatory agencies shape the business ecosystem by enforcing laws that govern industries, trade, and business practices. Their influence ensures a fair and competitive market.

Below is a list of key agencies relevant to the sector:

• US Federal Trade Commission (FTC): responsible for enforcing consumer protection laws and protecting consumers from deceptive or unfair business practices.
• US Federal Communications Commission (FCC): responsible for regulating communications by radio, television, wire, satellite, and cable.
• European Commission (EC): responsible for developing and implementing EU legislation, and ensuring that the EU’s laws are applied in all member states.
• UK Gambling Commission: responsible for regulating commercial gambling in Great Britain.
• Entertainment Software Rating Board (ESRB): responsible for assigning age and content ratings to video games and mobile apps, as well as providing consumer information about video games and mobile apps.
• International Game Developers Association (IGDA): a non-profit membership organisation that provides support to game developers worldwide.
• Entertainment Software Association (ESA): a trade association that represents the computer and video game industry, including game publishers, developers, manufacturers, and distributors.
• China Audio-Video and Digital Publishing Association (CADPA): responsible for enforcing standards and regulations for the Chinese game industry.

Industry Innovation

Innovation drives industry growth by creating new ideas, improving efficiency, and developing advanced products. It fosters adaptability and competitiveness, crucial for meeting market demands.

Without innovation, industries risk stagnation and decline.

This study divides innovations into:

• Current: Ongoing innovations
• Potential: Future-focused innovations

The game platforms industry has seen significant growth and innovation in recent years, with the rise of technology and the increasing popularity of gaming. From console gaming to mobile gaming, there has been a constant evolution in the way games are played and experienced. In this fast-paced and competitive industry, companies are constantly striving to stay ahead of the curve and provide innovative solutions to attract and retain players.

Current Innovations

Virtual Reality (VR) and Augmented Reality (AR): The introduction of VR and AR has revolutionised the gaming experience by providing players with an immersive and interactive environment. It allows players to step into the game world and interact with the virtual environment in a more realistic way. This technology has been utilised in various game genres, from first-person shooters to puzzle games, providing players with a more engaging and immersive experience.

Cross-Platform Gaming: Cross-platform gaming has become a popular trend in recent years, allowing players to play with their friends on different devices. This innovation has broken down the barriers between different gaming platforms, enabling players to connect and play with a larger community. It has also provided game developers with a wider audience and opportunities to monetize their games.

Cloud Gaming: The emergence of cloud gaming has eliminated the need for expensive hardware and has made gaming more accessible to a larger audience. With cloud gaming, players can stream games directly to their devices without the need for a high-end gaming PC or console. This innovation has also enabled players to access their games from anywhere, providing a more convenient gaming experience.

In-Game Purchases and Microtransactions: In-game purchases and microtransactions have become a significant source of revenue for game developers. These purchases allow players to buy virtual items, such as skins, weapons, and power-ups, to enhance their gaming experience. This innovation has also created a new business model for game developers, with the introduction of free-to-play games that generate revenue from in-game purchases.

User-Generated Content: The rise of user-generated content has allowed players to create and share their own content within the game. This innovation has not only increased player engagement but has also extended the lifespan of games. Players can now create and share their own levels, characters, and game modes, providing a more personalised and unique gaming experience.

Potential Innovations

Artificial Intelligence (AI): The use of AI in gaming has the potential to take gameplay to the next level. AI-powered characters can learn and adapt to players’ behaviours, providing a more challenging and realistic gaming experience. This innovation has the potential to revolutionise the way games are designed and played, making them more dynamic and unpredictable.

Blockchain Gaming: Blockchain technology has the potential to disrupt the gaming industry by providing a decentralised and transparent platform for game development and distribution. This innovation can eliminate issues such as piracy, fraud, and unfair distribution of profits. It also has the potential to provide players with true ownership of in-game assets, allowing them to trade and sell them in a secure and transparent manner.

Virtual Economies: With the rise of in-game purchases and microtransactions, virtual economies have become an integral part of the gaming industry. This trend is expected to continue, with the potential for virtual economies to become more complex and integrated with real-world economies. This innovation has the potential to create new job opportunities in the gaming industry, such as virtual economy managers and analysts.

Gamification: Gamification is the process of applying game design techniques and mechanics to non-gaming contexts. In the gaming industry, this innovation has the potential to enhance player engagement and motivation. It can be utilised in various industries, such as education, healthcare, and marketing, to make tasks more enjoyable and interactive.

Haptic Technology: Haptic technology, also known as haptics, is a tactile feedback technology that allows players to feel physical sensations within the game. This innovation can enhance the gaming experience by providing players with a more immersive and realistic experience. It can also be utilised in virtual reality gaming to create a more sensory experience.

Potential for Disruption

Disruption occurs when new technologies, processes, or ideas challenge market norms and shift industry value.

Key disruptors include:

• Technological Innovations: AI and automation change sectors like manufacturing and customer service
• Consumer Behavior: Shifts in preferences, like health trends, impact industries such as food
• Regulatory Changes: New policies, like GDPR, affect industries such as tech
• Social Changes: Growing sustainability concerns reshape industries like fashion
• Economic Shifts: Economic factors, such as financial crises, force industry adaptations
• New Entrants: Companies like Uber and Airbnb disrupt established industries
• Global Events: Pandemics and disasters, like COVID-19, disrupt sectors like travel
• Supply Chain Issues: Shortages, like the chip crisis, affect industries like automotive

The game platforms industry has seen a great deal of disruption in the past decade. This has been driven by the emergence of new technologies, such as cloud computing, and the desire for innovation in the industry. As more companies enter the space, competition has increased, resulting in a faster rate of change than ever before.

The potential for disruption in the game platforms industry is high due to the ever-changing landscape of technology. As new technologies such as virtual reality (VR) and augmented reality (AR) become more commonplace, new game platforms will be created to take advantage of these advancements. These platforms will be more interactive and immersive than ever before, allowing for more creative and engaging game experiences.

In addition, the game platforms industry is ripe for disruption due to the increasing availability of mobile technology. Many companies are now creating mobile versions of their games, allowing users to access their favorite titles on the go. This has led to an increase in mobile gaming, which has put pressure on traditional game platforms to stay competitive.

The potential for disruption in the game platforms industry is also driven by the emergence of new business models. Companies are now using new revenue streams such as in-app purchases, subscription services, and advertising to monetise their games. This has allowed for new opportunities for developers to create innovative and engaging experiences.

Lastly, the potential for disruption in the game platforms industry is driven by the emergence of digital distribution platforms. These platforms have allowed developers to bypass the traditional retail market, allowing them to sell their games directly to consumers. This has created a more level playing field for developers, allowing them to compete with the big names in the industry.

Overall, the potential for disruption in the game platforms industry is high. New technologies, business models, and digital distribution platforms are driving a rapid rate of change in the industry. This is creating opportunities for new players to enter the market, as well as for existing companies to stay competitive and innovate. As the industry continues to evolve, there will be no shortage of disruption.

ESG

ESG criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.

• Environmental: Environmental standards consider a company’s stewardship of nature
• Social: Social criteria examine how a company manages relationships with employees, suppliers, customers, and communities
• Governance: Governance deals with leadership, executive pay, audits, internal controls, and shareholder rights

Companies and industry sectors with strong ESG practices may enjoy enhanced reputation, more investment and better long-term performance.

The rise of Environmental, Social, and Governance concerns has had a significant impact on industries across the board, and the game platforms industry is no exception. ESG has become a critical factor for investors, consumers, and regulators when evaluating a company’s performance and sustainability. As a result, game platforms have had to adapt and address these concerns to remain competitive.

One of the most significant impacts of ESG on the game platforms industry is the increased focus on environmental sustainability. The gaming industry has been criticized for its high carbon footprint, with the production and distribution of physical game copies, as well as the energy consumption of gaming devices, contributing to greenhouse gas emissions. As a result, game platforms are under pressure to reduce their environmental impact by implementing sustainable practices in their operations, such as using renewable energy sources, reducing packaging waste, and promoting eco-friendly gaming practices.

ESG has also highlighted the importance of social responsibility in the game platforms industry. With the rise of social and political movements, consumers are more conscious of a company’s stance on social issues. Game platforms are expected to take a stand and actively support causes such as diversity and inclusion, gender equality, and mental health awareness. Companies that fail to address these concerns risk facing backlash and losing customers.

Moreover, governance has become a crucial aspect of ESG for the game platforms industry. As gaming companies continue to grow and expand globally, there is a greater need for transparency and accountability in their decision-making processes. Investors and stakeholders expect game platforms to have strong corporate governance, including ethical business practices, effective risk management, and diversity in leadership positions.

Increasing Sustainability

Increasing sustainability within any industry vertical has the following key benefits:

• Mitigates environmental impact
• Conserves resources for future generations
• Responds to consumer demand for ethical practices

Increased sustainability enables businesses to remain competitive in a market that increasingly values corporate responsibility, while driving innovation, reducing costs, and ensuring compliance with evolving regulations, thus supporting long-term profitability.

The game platforms industry has experienced significant growth in recent years, with the rise of mobile devices and the increasing popularity of online gaming. As the industry continues to evolve, there are several key opportunities for sustainability that can be leveraged to drive positive impact and ensure long-term success.

1. Green gaming: With the increasing awareness of climate change and environmental issues, there is a growing demand for eco-friendly products and services. The game platforms industry can tap into this opportunity by promoting and implementing green gaming practices. This includes using renewable energy sources to power data centers, reducing carbon emissions from gaming devices, and promoting sustainable packaging for physical game copies.

2. In-game sustainability initiatives: Games have the power to influence players’ behaviour and beliefs, and this presents an opportunity for the industry to promote sustainability through in-game initiatives. For example, game developers can incorporate sustainable themes and challenges into their games, such as recycling or conservation efforts. This not only raises awareness about sustainability but also encourages players to take action in their real lives.

3. Collaboration with NGOs: The game platforms industry can partner with non-governmental organisations (NGOs) to support their sustainability efforts. This could involve donating a portion of game sales to environmental causes, raising awareness through in-game events and promotions, or even collaborating on sustainability-focused game development projects.

4. Virtual reality for environmental education: Virtual reality (VR) technology has gained significant traction in recent years, and it presents a unique opportunity for the game platforms industry to promote environmental education. By creating immersive VR experiences, game developers can educate players about environmental issues and the importance of sustainability in a more engaging and interactive way.

5. Responsible gaming: As the gaming industry continues to grow, there is a growing concern about the negative impact of excessive gaming on mental health and overall well-being. Game platforms can take a proactive approach to address this issue by promoting responsible gaming practices, such as setting time limits and promoting breaks from screen time.

Sentiment Analysis

Sentiment analysis is crucial in the analysis of an industry, because it helps professionals understand emotions around the sector; and not merely an individual business.

We have crawled social media posts and thousands of news articles relating to this industry over the past two years. The cut-off date for articles in this crawl was 13th November 2024, with updates planned every quarter.

Once crawled, each content item is indexed and then processed for contextual analysis, with positive indicators such as ‘excellent’, ‘satisfied’, and ‘happy’; along with neutral and negative indicators flagged as important for the evaluation of industry sentiment.

The final score equates to the calculated average across all content items.

Scoring

The scoring is defined as follows:

• Positive: (1)
• Somewhat Positive: (2)
• Neutral: (3)
• Somewhat Negative: (4)
• Negative: (5)

Key Findings

As part of this sentiment analysis, we have concluded the following:

• The market sentiment for game platforms is mixed, with some positive and negative factors affecting the overall view.
• On one hand, the increasing popularity of online gaming and the rise of mobile gaming have created new opportunities for game platforms.
• However, competition in the market is also fierce, with new entrants constantly emerging and established players facing challenges in maintaining their market share.
• Concerns about data privacy and security have raised questions about the sustainability of certain game platforms.

Sentiment Score: 3

Further Reading

• Market dynamics for game platforms industry
• Risk analysis for the game platforms industry