How Video Game industry has evolved over the Years

abdulmirza24
Posted July 23, 2020 from Pakistan

How Video Game Industry has Evolved over the Years

The video game industry is the economic sector involved in the development, marketing and monetization of video games. It encompasses dozens of job disciplines and its component parts employ thousands of people worldwide.

The beginning

Prior to 1970’s there were no significant commercial aspects of the video game industry. The development of cathode ray-tube the core technology behind television created several of the first video game. In 1947 Thomas T Gold Smith Jr and Este Ray Mann filed a “patent for cathode ray tube amusement device”. Their game which uses a cathode ray tube hooked to an oscilloscope display challenges player to fire a gun at target.

One of the first known example is space war developed by Harvard and MIT employees Martin, Gratez, Steve Rusell and Wayne Wittanen. In 1971 the arcade game computer space was released. The following year Atari released the first commercial successful video game, Pong the original arcade version which sold over 19000. The same year saw the introduction of video games to the home market with the release of early video games console the Magnavox Odyssey.

The industry would eventually be revitalized by the release of Nintendo Entertainment system, which resulted in home console market being dominated by Japanese companies such as Nintendo Switch. The Nintendo entertainment system released in 1985 helped to revive the American video games industry after the video game crashed in 1983. The latter part of the decade saw the rise of Gameboy handled system. In 1990 the PlayStation was the most popular video game console of the fifth generation which saw the common adoption of CD media. The six generation Play Station 2 is the best-selling console of all time.

 

21st Century Development

In 2000 the video game industry is a judgment of development; profit still drives technological advancement which is then used by other industry sectors. Technologies such as Smartphones, virtual reality augmented reality are major drives for game hardware and game development. The 2010’s have seen a larger shift to casual and mobile gaming, in 2016 the mobile video game market is estimated to have taken $38 billion in revenues compared to $6 billion for the console market and $33 billion for personal computer gaming.

Major Companies

Sony CE is the most financially successful video game company in the world. Sony has built around the high successful PlayStation console. SCE was founded in Tokyo on November 16 1993. 

Nintendo is an oldest company; they came into known in US as the Nintendo Entertainment System in 1985. After this came the Nintendo 64, the Gameboy all of the highly beloved game consoles, games and character that Nintendo is known for. 

Electronic Art, often abbreviated EA, is also worth mentioning for its age. It is one of the oldest software companies that have remained a successful business. It was originally founded in 1982, and it is best known for its sport representation and in its yearly games like NFL, NBA and FIFA.  

In 1999 BMG games was taken over by Take-Two Interactive and Rockstar game was born. The development company is most well-known for its Grand Theft Auto series. In 2014, Rockstar shipped more than 250 million copies of its games. Rockstar is also responsible for the popular and highly praised Red Dead series. While all of their game has a similar style and feel, they are all pretty unique from the main market of games. 

Potomac Computer Systems was founded by Tim Sweeny in 1991 while he was a student at University of Maryland. Potomac turned into Epic Mega games, an attempt to make this one person studio seem larger. In 2012 the company moved to a new “game as a service” business model that has now become popular and announced a new game called Fortnite. It wasn’t until 2017 the Fortnite was made public. Fortnite’s battle royal mode quickly gained audience. Epic managed to break new ground by convincing Sony to allow cross play with Windows and Xbox and eventually all platforms. 

Video game industry earns more than Movies and Music industry

The video game industry is growing so fast that some believe that it will reach $300 billion by 2025. With billions of dollar profit and over 2.5 billion games around the world. The new trends free- to play online video games such as Fortnite and Apex Legends. Since it is completely free to register and play these games some people think that the gaming industry isn’t making much money of them. The free to play game such as Fortnite still brings in billions of dollars in revenue each year. The video game industry generated worldwide sales of $19.8 billion, $20.8 billion in 1994 and estimated ton $30 billion in 1998. Consider the top blockbuster movie to date Avengers Endgame. When it premiered on April on 16 it raked in over US $858,373,000 during its opening weekend. It even surpassed last year’s Avengers Infinity war which generated US $678,865,428 in gross revenue. These films received so much attention and hype from the public; they failed to outperform the highest grossing entertainment launch in history. Grand Theft Auto V earned US $1 billion in just over three days in 2013 when it was released. 

Written by

Abdul Moeez Mirza

 

Comments 7

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Chi8629
Jul 23
Jul 23

Thank you for sharing .

Hello, Abdul,

Thanks for writing about the video game industry. It was just this week where I learned about Mobile Legends Tournaments. One champion received $25,000 as a winning price.

I learned that there are video game players who left their jobs to play full time. They are pros and they earn more than their previous jobs.

Having read your write-up now made sense to it.

Unfortunately, even in the gaming industry, women feel discriminated. For example, on tournaments, a champion in the female category will only receive a tshirt and $20 compared to the $25,000 for the male tournament.

Do you play games, too?

Vanora.Lee
Jul 24
Jul 24

Thanks for sharing. It enrichs my knowledge in video game industry.

Tamarack Verrall
Jul 24
Jul 24

Hello Abdul,
It was fascinating for me to read this full history of video games, as it is a field I know little about, and obviously a field that has become wildly popular. I remember when there were no computers at all, or games, in the general public. I share Karen's concerns about how women are treated unfairly in the industry, and I also have grave concerns about the violent nature of many of the games, and the way women are either portrayed, or absent. What do you think? Are there ways as a man that you can help this change? This could be an important conversation to explore.

Veronica Ngum Ndi
Jul 25
Jul 25

Dear Abdul
This is so nice.I appreciate your critical analysis on how the video industry have evolve over time.This is so informative for us as women.I like to read more from you
Regards
Veronica Ngum
Cameroon

Millynairi
Jul 26
Jul 26

Hello Abdul,
Unfortunately I know very little about video games. Thanks for sharing.

Hawwah
Aug 05
Aug 05

Dear Abdulmiraz,
Thank you for this expose into the video game industry.
I have kids who are inquisitive and interested in it. But I have read so many disturbing reviews about video games I am not sure whether to allow them access to video games or not.
I don't want them exposed to bad influences.
I will appreciate your advice in this regard.