How are you taking your video gaming business to the next level?

By

John Harrison

EY Global Media & Entertainment Sector Leader

Transformative leader with a passion for media and entertainment. Identifying the opportunities afforded by convergence and disruption. Executing strategies to succeed in a fast moving market.

1 minute read 25 Jul 2019

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The video game industry has enjoyed over a decade of high growth. But as an era of new challenges looms, companies expect the next five years to be more challenging than the last.

Is winter coming? Is the video game industry becoming mature? Is it entering a darker period of lower growth, hyper-competition, and a fierce shakeout of players? What must a game company do to survive?

EY has conducted an in-depth, global survey of over 200 senior executives from the video game industry. Our research explores key challenges such as soaring production costs, mounting competition, customer churn, higher cyber-risk, and the prospect of tougher government regulation. As almost half of companies step-up their investment in 5G, we also explore the impact of technologies and related business models – streaming, virtual reality, blockchain and others.

A cornerstone of the EY research is to articulate how video game companies and the industry at large can respond. What is the role of technology and is it a panacea to solve the industry’s challenges? How should business models be redefined to protect the enterprise and drive growth?

This report, which will be available in September, is a comprehensive study of the industry, plus related summaries on the opportunities and impact of eSports, blockchain and cyber-security on the industry. Special reports will also cover the video games industry in China, Japan and South Korea, highlighting local differences such as the popularity of VR in Asia.

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Summary

In the last 10 years, the video game industry has been booming. But after more than a decade of exceptional growth, video game companies may have to adjust to a new era — one of slowing growth, rising risk, escalating costs and new, disruptive business models.

About this article

By

John Harrison

EY Global Media & Entertainment Sector Leader

Transformative leader with a passion for media and entertainment. Identifying the opportunities afforded by convergence and disruption. Executing strategies to succeed in a fast moving market.