TOKYO, Jul 11 (News On Japan) - The video game industry is undergoing a major transformation, moving beyond its traditional image as a pastime for children and enthusiasts to become a vast, multifaceted entertainment business. The global gaming market was estimated at 33 trillion yen in 2023, highlighting its explosive growth.
The shift began in 1983 with Nintendo’s launch of the Family Computer, or Famicom, which sold over 60 million units worldwide and sparked nationwide excitement. A notable example was the release of "Dragon Quest III," when long lines formed outside stores, turning game launches into social phenomena.
Subsequent hits like the PlayStation and Switch continued to drive the home console market. However, the proliferation of smartphones ushered in an era where games could be enjoyed across a wide range of devices, untethered from traditional hardware.
Over the past few decades, the business model of gaming has changed significantly. No longer limited to just hardware and software sales, the industry now includes live events, merchandise, and game streaming as central components.
Large-scale eSports tournaments, for instance, now attract over 20,000 attendees, mostly in their 20s and 30s. Professional eSports players command dedicated fanbases, and the popularity of such events has encouraged companies across sectors to get involved.
Matsui Securities, for example, has become a sponsor of eSports teams to build brand awareness and connect with younger generations.
At Tokyo Game Show 2024, exhibitors included brands like Nitori and IKEA, showcasing gaming desks and chairs, reflecting growing demand for gamer-focused furniture.
Game streaming is also expanding rapidly. Amazon-owned platform Twitch allows individuals to broadcast their gameplay and commentary, attracting 105 million monthly users—70% of whom are aged 18 to 34. The platform boasts an ad viewability rate of 90%, far exceeding the 77% average for typical social media, making it highly attractive for advertisers.
As a result, gaming has evolved into comprehensive entertainment that goes far beyond just buying and playing software. Events, distribution, and retail have all become integral to the ecosystem, reflecting the transformation of how games are consumed and enjoyed.
Editor-in-Chief Hirano of the newly launched Nikkei Gaming, which began publication this month, commented on the significance of this shift and the publication’s role in tracking the evolving business landscape.
Source: テレ東BIZ
