Investment grows in the gaming sector amidst stiff competition 

Games investment is performing well. The reports by Digi Capital claim that from January to September 2018, the total Investment made in the sector was $3.8 billion, which was 50 per cent higher than the full-year record of 2017. 

Market analytics by Digi Capital reveal the games deals exceeded $25 billion in the first three quarters of 2018, which indicated the top of the market as it happened in 2014 when the shares of gaming companies plunged immediately to the lowest levels.  

Since 2010, the cycle of such deals has swung from boom to bust almost twice in the last ten years. The developers are seriously investing in the mobile and console / PC game sectors. 

Tencent made the highest investment last year in the Chinese market, where the games IPO fell by 90 per cent to $1.1 billion from $17.1 billion.  

Snapchat said the mobile gaming industry was $77 billion in 2017. It was difficult for players to install each game on their machines, and they had to search for others to play with; hence, Investment grows in the gaming sector amidst stiff competition, 

Games investment is performing well, where the reports by Digi Capital claim in the months. Will be introduced, which will engage the player in virtual competition.  

Growth and stiff competition in the sector

The video game industry grew with the introduction of new products and technology where competitive events are increasing.  

Greenberg states the trend will continue to grow with the increasing engagement of young players as video games are cheaper than cable TVs and watching cinemas in theatres.  

The gaming cartoonish looks and the pop culture elements have attracted the young and teens. The sector's revenue was over $43 billion in 2018, up 18 per cent from 2017. 

It was more than the projected total global box office collection – per the Entertainment Software Association and The NPD Group data. 

The indicators claim for the global box office, the revenue published at the end of 2018, and the ticket sales at the box office hit $41.7 billion, per the comScore data by Deadline Hollywood. 

The figure is more than the number for the streaming services, estimated to be around $28.8 billion, per the Multichannel News report.

Free games are the biggest challenge.  

As the two top video gaming companies reported quarterly earnings, the shares of EA dropped 13 per cent as the company cited intense competition in the space, causing revenue miss for the third quarter of 2019. 

Similarly, Tate Tow Interactive, which reported earnings in the last quarter, fell 14 per cent in June's first week. Many gaming firms feel threatened by free-to-play games, which are widely popular and have created heightened competition.   

Such options are a great source of entertainment for the younger generation, raising concerns when Netflix CEO Reed Hastings said Fortnite was more of a threat than TimeWarner. 

When YouTube was down for a few minutes in October 2019, many new entries tried to gain entertainment with the low barrier to entry.