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Online gaming in 2020: Year of rapid user growth

Online gaming in 2020: Year of rapid user growth
Online gaming in 2020: Year of rapid user growth

Online gaming in 2020: Year of rapid user growth

December 17, 2020 Posted by Abigail Massimo Editorial No Comments

In 2020, the online gaming industry witnessed an unprecedented boost as the lockdown put a halt to all outdoor entertainment options like movies, sports, travel, theme parks, etc. However, the online gaming market continued thriving rapidly as it was a safe stay-at-home entertainment option across age groups, supported by bet-pa.com educating punters on legal gambling markets. This website aspires to become your go-to place for online betting on sports and casino. Additionally, online gaming supported community bonding and human interaction in social distancing times.

According to industry experts, the consumers are rebalancing instead of reducing their expenditure away from cinema, outdoor entertainment, and gaming. That contributed to an increase in app downloads during the first quarter of 2020, with in-app purchases rising significantly. This growth is all thanks to an increase in the number of active gamers worldwide.

In 2017, gamers’ global population was estimated to be about 2.21 billion, but the number has risen significantly this year, and it’s expected to hit 2.73 billion by the beginning of 2021. Today, 64% of America’s general population is composed of gamers.

This year, gaming platforms recorded 60-70% user growth, with a 50-60% increase in the time spent. This increase in the number of users and long engagement hours also means that gaming companies witnessed a 60-70% reduction in customer acquisition costs, thus boosting the profitability and profit margin.

Sectors witnessing maximum user engagement growth include real money gaming (RMG), fantasy sports, and casual board games. These segments are primarily dominated by young gamers (18-24), although several platforms witnessed an increase in players within the 25-35 years age group. Even better, casual board games witnessed more participation from women.

Increased Funding on Gaming

While gaming has been under-financed in most parts of the world, 2020 has changed thanks to increased investor attention to rising gaming markets in Asia, Africa, and North America, as well as in Europe with sites like Olybet. These investors are pumping billions of dollars in homegrown gaming startups, with countries like India reporting over $350 million.

For many gaming companies, the investment raised has been directed towards marketing and state-of-the-art tech to enhance the user experience. The investors are also having a change of mentality in the revenue model, which was previously concentrating on one-time consumer purchases. As a result, the gaming revenue cycle has changed to include expansions, add-ons, in-app purchases, and monthly subscriptions. That creates multiple streaming revenue for gaming companies in 2020, leading to increased profits across the board.

The investments will also influence the development of new games set to hit the market next year and deepen the industry thanks to affordable internet and the rise of affordable smartphones.

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About Abigail Massimo

Correspondent for Armchair Arcade.

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