23 November 2024, Sat |
7:18 AM
Video games are now the first choice of entertainment for people ages 13 to 17—ranking above social media, TV, music or any other form of media—according to a new study by Bain & Company. These young gamers are currently spending more time and money in the metaverse than older gamers, and they expect to increase the amount of time they spend there in the future.
“There has been a lot of buzz, and plenty of confusion, among the business community on what the metaverse is and how it will shift commerce and life into the digital realm,” said Andre James, Global Head of Bain & Company’s Media & Entertainment Practice. “Meanwhile, young gamers have been paving the future of the metaverse. They have adopted to metaverse-style games, often preferring to socialize with friends in games more than in person. They are increasingly comfortable with virtual reality, so even those that don’t currently play in the metaverse are likely to do so in the future.”
“The preferences and demands of gamers are changing, especially as the thin line between the digital and real worlds recedes. The metaverse has attracted many young gamers who are looking for an immersive experience, which allows them to socialize and become active creators in the game. In fact, half of young gamers prefer to spend time virtually with their friends in games over meeting in-person,” said Samer Bohsali, Partner at Bain & Company Middle East.
“The importance of this virtual space has not just gained interest from young gamers, but also from governments of cosmopolitan countries. Therefore, cities like Dubai have recently announced its metaverse strategy and its prediction to add $4 billion to its economy and 42,000 virtual jobs by 2030.”
The adoption of “free-to-play” games and the rise of new payment models, such as monthly subscriptions to game libraries, has resulted in higher average revenue per user. As video games become the foundation for other paid entertainment experiences, this trend is likely to accelerate. However, metaverse businesses will have to cater to the preferences of various demographics. For example, 56% of younger gamers said they were willing to pay to unlock features that improve their game performance, whereas many older players were not. According to Bain’s research, younger gamers are more likely to play online games to compete with friends, family, and strangers than adult gamers, who tend to play for fun and are more likely to play alone.
The growing interest in the metaverse is consistent with the preferences of young gamers in and out of gaming. Approximately half of younger gamers said they would rather attend school events in the metaverse than in person, and the other half said they would rather play with their friends online than in person. Social interactions in game environments lay the groundwork for other online activities such as concerts, sporting events, and other aspects of life such as work and commerce. This growing demand for community experiences will most likely serve as a catalyst for a larger metaverse.
Bain’s research indicates that although there are some differences between younger gamer motivations and preferences across geographies, similarities are growing leading to more opportunity for global success. In order to maximize potential, developers and publishers will need to continue to listen to preferences from young gamers. This will include building fun and immersive experiences that are social, multiplatform and customizable. Long-term player engagement will be dominated by games that can scale and have a world and community that exists beyond the initial video game.
The frenzied M&A activity that characterized the first half of 2022 in the gaming industry could be just the beginning. Other media industries’ experiences suggest that more consolidation is likely.
Furthermore, game developers compete with other tech companies for top coding talent, but according to Bain’s salary research, game companies pay less than competitors. Gaming companies will need to adapt their talent strategies in order to attract and retain the top-tier metaverse content that younger gamers crave. This will be reflected in traditional above-market compensation and benefits, as well as opportunities to work at companies that are more virtual, less hierarchical, leaner, and more agile.
