The latest report from Newzoo offers fascinating insights into the transformative potential of gaming, particularly at a crossroads which is near and dear to our hearts - User Generated Content (UGC) and Artificial Intelligence (AI). We have been pretty excited about new platforms like Epic’s UEFN (Unreal Editor for Fortnite), Build-A-Rocket-Boy’s Everywhere and others. Of course we can’t forget Roblox, who has been pioneering the creator platform space for over 17 years!
We believe this union of UGC and AI will pour gas on the fire of games and game content creation, and it will further enable one of our core theses since 2018 - creators and developers are moving to the front of the line. Even AAA developers are experimenting (@Pete Hawley we saw what you did there with Bank Heist!) Creator platforms promise a streamlined gaming development process, while they also stir debate around IP and copyright laws and the human-versus-AI drumbeat we have been witnessing among 11,000 writers over four months in Hollywood (note: hearing promising news on that.) Other highlights in the Newzoo report -
Regional - Middle East & North Africa (MENA) shines as the beacon of mobile gaming revenue growth
Mobile gaming growth stagnated as key markets dealt with macroeconomic shifts and new app store policies, as key markets dealt with macroeconomic shifts and new app store policies
Console is the largest revenue growth segment, up 7.4% YoY, due to the catch up effect of fewer supply chain delays, along with the launch of several long awaited iconic titles, (e.g., Final Fantasy XVI and The Legend of Zelda: Tears of the Kingdom)
PC gaming continues to leverage its classic franchises, e.g., Counter-Strike
Cloud gaming, though in its infancy, displays promise with its AI and latency enhancement endeavors
Transmedia (content that travels) In the evolving landscape of gaming, the blossoming realm of transmedia, which encompasses games, movies, and collectibles, stands out. The transition from game to movie not only boosts cinematic viewership but also rekindles the game's engagement. As we move forward, the harmony of UGC, AI, and multi-platform experiences heralds an exciting era for gamers and developers alike. 🎮🤖🌍