The Growth of the Gaming Industry during the Pandemic

Reading Time: 5 minutes The video gaming industry is one of the fastest-growing industries in the world. In the US alone, the video gaming sector is an approximately $200 billion industry and is expected to reach around $270 billion by 2025. In a recent study, it was found that out of 3.2 billion gamers worldwide, 1.48 billion belong to Asia. 

Reading Time: 5 minutes

The video gaming industry is one of the fastest-growing industries in the world. In the US alone, the video gaming sector is an approximately $200 billion industry and is expected to reach around $270 billion by 2025. In a recent study, it was found that out of 3.2 billion gamers worldwide, 1.48 billion belong to Asia. 

Effects of COVID-19 on the Industry

One of the major reasons for growth in the video gaming industry is the pandemic. In 2020, the console sector of Microsoft and Sony alone made record-breaking sales of over $45 billion. One of the major revenue generators for the industry is the rise of esports. It is also being considered to become a part of the Olympics by the International Olympic Committee.

According to a recent study, Twitch, one of the world’s most significant gaming live stream platforms saw an 83% rise in viewership as soon as the pandemic hit. Therefore, the pandemic did not just affect the gaming industry but viewership in the esports industry too. 

Prolonged exposure to video games might be of a little bit of concern to most people, but it’s far away from the truth. According to research data, a 200% increase was noted in gaming searches by people of years 60 and above on the G2A.COM gaming platform. Elder people who needed to keep their mental health intact during isolation sought help from gaming. Apart from the senior citizens, the gaming industry has helped teachers and students in their respective areas. 91% of the teachers who use gaming as an educational tool have found it helpful in their teaching resources. 69% of those teachers admitted that children are more likely to do their homework if it involves gaming.

After COVID-19 hit, two-thirds of Americans have turned towards gaming to cope with the new socializing circumstances. 55% of those players admitted to playing more games during the pandemic and 90% believe that they will continue playing even after the restrictions go away. 

Coping & Development with Games

Research conducted by Ipsos found that 55% of the gamers used gaming as a tool for stress relief and 48% used it for distraction. Here is what Stanley Pierre-Louis, the Entertainment Software Association’s president, and CEO told USA TODAY about the survey, “When we were doing this survey we had a sense the numbers would go up, but we weren’t sure on the scale. We were excited to see the trend line. … That’s just a huge leap. And it was up in all categories.”

According to American Psychological Association, video games are a great way to boost a child’s learning and social skills. Qutee, a data-led discussion platform, conducted a survey among gamers, which showed some interesting results. When asked about the most significant benefit of gaming, 40% believed that it had improved their emotional well-being. Moreover, when it comes to social life, two-thirds of the gamers claim to have made around five friends through online gaming, and the rest claim to have made even more.

Drawbacks of Video Games

Even with all the benefits, there are a lot of drawbacks to excessive gaming too. Spending too much time on gaming can lead to a lower rate of achievements and distorted social skills. Due to several cases of addiction to video games, the American Psychiatric Association’s prognosis for Internet Gaming Disorder was closely related to Gambling Disorder since DSM-5 of 2013. Moreover, the exposure of children to games that are inappropriate for their age can lead to some negative effects on their development.

Pakistan Position in the Gaming Industry

During this growth of the gaming industry around the world, Pakistan has also started its journey to join the international gaming industry. On February 4th, 2022, Google announced the launch of its first Gaming Growth Lab in Pakistan. The purpose of the lab is to host a virtual program that will allow the country’s mobile gaming companies to expand their growth with the help of Google. 

As the Information Minister of Pakistan, Fawad Chaudhary also gave esports regular sports status in 2021, he said, “A memorandum has been signed between Pakistan Sports Body and Pakistan Science Foundation after which Esports will get regular sports status. If you are interested in video games, get ready as new opportunities are waiting for you.” In another interview, he mentioned that the extension of the gaming industry in the country is seeing annual growth of around 20%.

Despite that, the country hasn’t covered much ground in the gaming industry as a whole. According to Samar Hasan, co-founder of Epiphany Games, there are quite a few problems with the Pakistani gaming industry. First of all, there aren’t many universities in the country that teach game development, which might also result in a lot of raw talent going unpolished. Over and above that, most of the video game developers lack the capital to develop a high-quality game. Ms. Hasan also showed concerns over almost all the gaming studios being run by men.

Although, even with all the hurdles faced by the Pakistani gaming industry, the Pakistani e-gaming community has been on a steep rise. It started with Syed Sumail Hasan becoming the youngest person to surpass $1 million winnings in e-sports after winning The International 15, the biggest annual Dota 2 tournament. Shortly after that, Lahore-based Arsalan Ash paved his way through the best Tekken players to win EVO Japan and USA in 2019. He was also named “ESPN ESports Player of the Year”.  Currently, some of the most popular online multiplayer games in Pakistan include Dota 2, CS-GO, Valorant, and PUBG. Pakistan ranks at 29 out of 150 countries after bringing in $4.78 million in earnings from e-sports.

Apart from online multiplayer gaming, Pakistanis are also taking an interest in mobile gaming. According to research, about 69% of Pakistani adults indulge themselves in mobile games. On average, Pakistani mobile gamers spend 4 hours a day on their phone, out of which 37% of their time is spent on mobile games.

Even with the slow pace of growth of the Pakistani gaming industry, some gaming studios are providing a ray of hope for the industry. Lahore-based Mindstorm Studios is one of the biggest game development studios in the country. It developed Cricket Revolution, Pakistan’s first commercialized video game in 2009. The game is also available on Steam. Shortly after, Islamabad-based We.R.Play turned some heads around globally with its game, Dream Chaser.

Even though the gaming industry in Pakistan is partially stable, there have been a few problems in the industry that need a solution. A lot of the instructors have no relevant field experience to keep up with the latest trends. Additionally, it wasn’t until 2019 that Pakistani universities introduced game development courses. However, a lot of what is taught in these institutions is considered to be outdated and irrelevant. We.R.Play Director Khadija Murtaza noted that a lot of the Pakistani universities focus on technical aspects of the studies; however, she believed that soft skills are also necessary to step into the job market.

As an industry that is bigger than the movies and TV shows combined, it gives Pakistan a lot of opportunities to grab on to as early as possible. Only time will tell what the future holds for this country in this fast-paced world.

Seirut Javed

A being that lives a discombobulated life but thrives on food, movies, fiction, travel, knowledge and dreams. Tweets @Seirut

Published by
Seirut Javed

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