In the last decade, the gaming industry has experienced rapid growth, driven by rising demand, emerging technologies such as VR and mobile gaming, changes in working conditions, and shifts in consumer behavior due to the COVID-19 pandemic.
A recent EY study
suggests that Gen Z has shown more engagement in the gaming industry than ever recorded: 74% of Gen Z participants stated that they had purchased digital gaming items for their avatars, such as accessories, weapons, or skins. Increased usage of mobile phones among new generations also boosts the gaming economy tremendously, with more and more people accessing games and entertainment from their smartphones and tablets. With the surge in investments and demand, e-games are gaining popularity among the youth, and e-athletes are signing lucrative endorsement deals and contracts, earning millions of dollars annually, just like traditional sports athletes.
The popularity of gaming has expanded to include older generations, too. Due to the pandemic, many young adults and grown-ups had to remain home and work remotely. These significant changes to their work conditions and social lives prompted individuals to try playing video or mobile games to reduce stress, maintain their mental health, connect with others safely, and combat boredom during prolonged lockdowns.
According to PWC Global Entertainment and Media Outlook 2023-2027
, Total gaming revenue is now expected to rise from US$227 billion in 2023 to US$312 billion in 2027, reflecting a 7.9% CAGR. With confidence in the gaming industry rising, advertising revenue is expected to nearly double between 2022 and 2027 and will reach US$100 billion in 2025.
PwC analysts predict that the growth in gaming revenues will continue, mainly because of increased investment in in-app advertising. In 2017, video games accounted for only 6.1% of the entertainment and media industry’s global spending. The PwC report forecasts that this figure will rise to 10.9% by 2026, reflecting the rising popularity of gaming as it becomes more mainstream.
PwC report further states that the gaming market is projected to experience its most rapid expansion in Turkey, with an average annual growth rate of 24.1% from 2021 to 2026. This will be followed by Pakistan, with an anticipated growth of 21.9%, and India with a growth rate of 18.3%.
Along with all this growth and excitement in the gaming industry, there is also a new sheriff in town: Artificial Intelligence. AI is revolutionizing the way we live and conduct business, and gaming is no exception. But in what ways can AI impact today’s gaming world? What possibilities or ramifications can emerge from the rise of AI tools?
In this article, we will take a deeper dive into the capabilities of Artificial Intelligence and how its capabilities can redefine the gaming sector as we know it.
1) Content Creation
Content creation comes with a spectrum of challenges in the gaming industry. It can take years and millions of dollars of investments to design the characters, maps, skills, garments, music, and other content for a game. Storylines and character affiliations can be incredibly complex for some games, considering that gaming companies generally produce sequels to increase user engagement and create revenue streams over the long haul. Fortunately, AI tools can help. With the ability to automate and accelerate content creation, AI can streamline the process, allowing for scalable growth and cost savings.
AI also makes it possible to fabricate complex storylines that are consistent and customizable, providing a unique game experience for players. By commanding the AI, gamers can quickly progress in the game by typing, prompting the AI to generate limitless content for their in-game characters to interact with, making the game even more immersive.
2) Game Testing
Playtesting is a crucial part of game development, where developers test the beta version of games to find bugs, inconsistencies, and problems before the release. This process usually takes a considerable amount of time and effort, and it is susceptible to human error.
Automating game testing using AI can eliminate human error, making it a fast, effective, and cost-efficient way to identify and resolve coding bugs and issues. With the powerful AI tools available, developers can complete playtesting quickly and focus on enhancing critical aspects of the game, resulting in a more enjoyable overall experience.
3) Immersive Gaming Experience
Probably the most exciting feature of AI in gaming is the enhancements that it provides for an immersive gaming experience. Until now, players had limited interactions with non-player characters (NPCs) in the game, where NPC responses and actions were predetermined. With AI integrations, gamers can unlock unlimited possibilities in the game. AI chatbots can generate personalized responses depending on the input provided by gamers, meaning they can have genuine conversations with side characters.
AI can also remember previous conversations, actions, feuds, and friendships made throughout the game based on players’ choices, enhancing the overall gaming experience. Imagine this: You are playing an open map game where you have the option of helping an NPC or not. By helping a character, later on, that character can help you back because you offered help previously. Or you can kill a character, and other NPCs that are friends of the character you killed can seek revenge or become your arch-nemesis. The possibilities are endless, but one thing is certain: AI can provide a more realistic and personalized experience for gamers.
4) High Resolution
AI is already doing a tremendous job enhancing the quality of images and videos, and now, the same techniques are also being applied to video games. AI systems are elevating the resolution to provide sharper visuals and make necessary adjustments based on hardware, network, and user preferences. With face recognition capabilities, AI allows gamers to transfer their physical attributes into the game and eliminates game developers’ need to use real actors for generating facial mimics, gestures, and movements.
Also, with Machine Learning, AI can quickly generate these attributes that are almost inseparable from reality, creating a very realistic experience for gamers. The polar opposite is also possible: With the recent AR integrations, AI can embed virtual designs into real life, creating a visually enhanced environment. It can also manipulate camera angles during scenes, generate high-quality cinematics, apply filters, and perform other visual enhancements that transform games into a true visual feast.
5) Fast Loading Times
AI possesses several features that can improve loading times and reduce latency, which is crucial for enhancing the gaming experience. One of them is predictive loading: AI can preload some maps and resources in the game based on the player’s previous actions, making a smoother transition possible between scenes or milestones in the game. Additionally, AI can optimize resource quality to match the gamer’s hardware specifications, further reducing latency and loading times.
By accurately predicting gamer behavior, AI can optimize networks and eliminate unwanted loading times. AI-generated videos, hints, and mini-games enable the creation of dynamic loading screens where players can get useful information, avoid getting bored, and enjoy additional content that elevates entertainment. AI can break down assets into smaller bits and load them simultaneously, efficiently using multi-core processors and decreasing bottlenecks during loading.
6) Improved Analytics
There are many benefits to using AI for data management and analysis, especially when it comes to the vast amount of data collected from gamers. Using AI-powered data analysis, players can receive instant feedback, helpful hints, and personalized recommendations for in-app purchases based on their behavior and preferences. This can significantly improve the overall player experience.
Enhanced analytics help understand the social interactions between players in the game, which can be leveraged to improve the social aspects of the platform. AI can also collect and analyze player data to detect any form of cheating, making it much easier to ban fraudulent accounts and create a fair platform for all users.
Today’s gaming industry faces many challenges, which include fierce competition, rising development costs, a constantly changing business environment, shifting gamer preferences, and emerging new technologies. These challenges require efficient and effective solutions to remain competitive and reach organizational milestones.
As Kartaca, we’ve assembled an unprecedented level of hands-on talent under one roof to create perfect solutions for our customers. Our team of 30+ software, network, and data engineers makes precise touches to our customer’s pain points and offers lifelong solutions. Our team is trained on Google Cloud products, concepts, use cases, etc. Their technical skills to solve real-world IT challenges are validated regularly through certifications.
Kartaca provides you with the AI tools and other technologies you need to leverage your competitive advantage and consultancies to help you make the right choices in your gaming ecosystem. If you would like to know more about how Kartaca can add value to your gaming business, please check this page
and contact us
Kartaca is a Premier Partner for Google Cloud in the Sell and Service Engagement Models with “Cloud Migration” and “Data Analytics” specializations.