THE COVID-19 pandemic brought unprecedented changes to virtually every aspect of life, and the gaming industry was no exception. As lockdowns and social distancing measures became the norm, people turned to digital forms of entertainment to fill the void left by restricted physical activities. This shift led to significant impacts on the gaming industry and its community of gamers.
Surge in Gaming Popularity
With more time spent at home, people turned to video games as a primary source of entertainment. Game sales and downloads saw a substantial increase across all platforms. Digital game distribution services like Steam, the PlayStation Store, and the Xbox Marketplace reported record sales and user engagement.
The PC gaming platform Steam broke records for concurrent users multiple times during the pandemic. In December 2020, Steam saw a peak of over 24 million concurrent users, a significant rise compared to previous years. At the same time more users got involved in esports betting, making it even more profitable. The increase in user activity translated into higher game sales and downloads.
Console sales also surged. The release of new generation consoles like the PlayStation 5 and Xbox Series X faced unprecedented demand, leading to frequent stock shortages and high resale prices. Nintendo’s Switch console remained highly popular, with titles like “Animal Crossing: New Horizons” selling over 31 million copies by the end of 2020, making it one of the best-selling games on the platform.
Mobile gaming saw significant growth as well. Casual and accessible games provided quick entertainment, appealing to a broader audience. Titles like “Among Us,” “PUBG Mobile,” and “Genshin Impact” attracted millions of players globally, with “Among Us” becoming a cultural sensation for its simple yet engaging gameplay.
The pandemic underscored the importance of social interaction, which many people found in multiplayer and social games. Games that facilitated virtual gatherings and socialization saw a sharp increase in popularity. The increased engagement with video games during the pandemic led to broader cultural acceptance and recognition of gaming as a mainstream activity. Celebrities and public figures participated in gaming events, and gaming content became more prevalent in mainstream media.
Economic Impact
The gaming industry saw a substantial increase in revenue during the pandemic. The heightened demand for entertainment and the need for social interaction drove up sales across all gaming platforms — PC, console, and mobile.
Large game publishers reported significant revenue growth. For example, Activision Blizzard, the company behind popular titles like “Call of Duty” and “World of Warcraft,” reported a revenue increase from $6.49 billion in 2019 to $8.09 billion in 2020. Similarly, Electronic Arts (EA), known for its sports games and franchises like “The Sims,” saw its revenue rise from $5.54 billion in 2019 to $5.63 billion in 2020, with continued growth into 2021.
Indie game developers also benefited from the surge in gaming. With more people exploring a variety of games during lockdown, many indie titles gained popularity and profitability. Games like “Among Us” by InnerSloth and “Hades” by Supergiant Games became unexpected hits, driving significant revenue for their developers.
The mobile gaming sector experienced rapid growth as well. Sensor Tower reported that global mobile game spending reached $79.6 billion in 2020, up 26% from the previous year. Popular mobile games like “Genshin Impact” and “PUBG Mobile” contributed to this surge in spending.
The financial success of gaming companies during the pandemic was reflected in their market capitalizations. Stock prices of major gaming companies soared, attracting substantial investor interest.
Both Sony and Microsoft saw significant gains. Sony’s PlayStation 5 launch was highly successful, despite supply constraints, and Microsoft’s Xbox Game Pass subscription service grew in popularity. These successes were reflected in their respective stock performances, with both companies experiencing substantial market capitalization growth.
Evolution of Game Development
As lockdowns and social distancing measures took effect, game development studios had to transition to remote work quickly. This shift presented several challenges and opportunities. Game development is a highly collaborative process, often requiring close communication among team members. Remote work disrupted traditional in-person interactions, making it necessary to rely on digital communication tools.
Developers needed access to high-powered computers and specialized software, which were often tied to physical office locations. Ensuring all team members had the necessary equipment at home required logistical adjustments. Working remotely raised concerns about data security, especially for companies handling sensitive intellectual property. Implementing robust security measures for remote work environments became a priority.
Remote work allowed for more flexible work schedules, which helped accommodate developers’ personal needs and time zones. This flexibility often led to increased productivity and job satisfaction. The shift to remote work enabled studios to hire talent from a broader geographic area, no longer limited by proximity to a physical office. This expanded the talent pool and allowed for more diverse and inclusive teams.
The challenges posed by remote work accelerated the adoption of new technologies and tools to facilitate game development. Tools like Slack, Microsoft Teams, and Discord became essential for daily communication and project management. These platforms facilitated real-time collaboration and helped maintain team cohesion.
Cloud-based storage solutions and version control systems like GitHub and Perforce allowed teams to manage and share their work seamlessly. This ensured that everyone had access to the latest builds and assets.
Esports and Online Events
Major in-person esports events, such as the League of Legends World Championship, The International (Dota 2), and the Fortnite World Cup, were either canceled, postponed, or moved to online formats. This disruption affected not only the players and teams but also the venues, sponsors, and fans. Organizers faced logistical challenges in coordinating online events, including ensuring fair play, managing technical issues, and maintaining the excitement and engagement of live audiences.
The shift to online tournaments became a necessity, allowing esports competitions to continue despite restrictions on large gatherings. Online events were organized across various games and platforms, ensuring that players could compete from the safety of their homes. Platforms like Twitch, YouTube Gaming, and Facebook Gaming saw a surge in viewership as fans turned to these platforms to watch live esports events. This increase in online viewership compensated for the loss of in-person audiences.
Online tournaments removed geographical barriers, allowing players from different regions to compete without the need for travel. This inclusivity expanded the pool of participants and increased the diversity of competitors. Amateur and semi-professional players found more opportunities to participate in online events, leading to the discovery of new talent and fostering a more competitive environment.
The increase in online viewership attracted new sponsors and advertisers to esports. Brands recognized the value of reaching a highly engaged and tech-savvy audience through digital platforms. Esports organizations and event organizers explored new revenue streams, including virtual ticket sales, exclusive merchandise, and premium content subscriptions. These strategies helped offset the financial impact of canceled in-person events.
Conclusion
As the world gradually recovers from the pandemic, the gaming industry is poised to continue its growth trajectory, driven by innovation and the enduring appeal of interactive entertainment. For gamers, the experiences and connections formed during this period will remain a testament to the resilience and adaptability of the gaming community.
