Web3 and Metaverse to Impact the Future of Gaming in Asia
The Asia market research firm Niko Partners released a report today titled The Metaverse and Beyond: Future Trends of Gaming in Asia. As the leading region for video games, Asia leads the way in implementation and adoption of new technology. The report covers important trends that are changing the way people play games: extended reality, virtual influencers, web 3, cloud gaming and the metaverse.
Key takeaways from the 83-pages long report include:
- Metaverse in gaming has shifted the concept from games as a service to games as a platform. In Asia, the popularity of social gaming during the pandemic has accelerated this trend.
- The building blocks of the Metaverse include existing and new technologies that will be discussed in this report. Developing games with metaverse elements will be the most profitable in the short term.
- Web 3 is shaping how games are created, connected, published and monetized. However, most Web 3 games have only scratched the surface of emerging monetization models such as play-to-earn (P2E). Regulation of cryptocurrencies and NFTs is also affecting how Web 3 applies to gaming.
- Much hype around Web 3 gaming, but the technology still faces challenges, including addressing the sustainability of models such as Play to Earn.
- With improved network infrastructure and an increase in the installed base of 5G mobile phones, cloud gaming has a lot of room for growth in Asia. Cloud gaming requires a stable internet connection, uses a lot of data, and may experience higher input lag when gaming in areas with poor infrastructure. Asian governments are working with telcos to build and upgrade 5G infrastructure.
- Research shows that the addressable market for cloud gaming services in Asia will reach 500 million by 2025, with subscription services being the most popular. Cloud gaming innovation through cloud native gaming, MILE, cloud gaming ads and trials will drive additional growth.
- Extended Reality (XR) technology is still in its infancy in Asia, with Augmented Reality (AR) for gaming being the most advanced, followed by Virtual Reality and Mixed Reality.
- Augmented reality is starting to go mainstream in Asia through mobile devices and games like Pokemon Go. Recently there has been a growing interest in VR across the region. A Niko survey found that more than 40% of respondents in Japan, South Korea, Singapore and Chinese Taipei are interested in purchasing a VR device.
- Virtual influencers are prevalent in Asia, they are used as idols, streamers, brand ambassadors, entertainers and more. In the gaming world, Japan is the leader in virtual influencers.
- Virtual influencers are gaining popularity in Asia and there is an increasing use of virtual human technology and artificial intelligence to create fully digital celebrities. Although generally marketed in a risk-free manner, companies running virtual influencers still need to play a significant role in managing brand identity in order to truly connect with fans.
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Source: igaming
