Google Makes Its Play for the Next Generation of Gaming
The global video game industry was valued at over $130 billion in 2018, according to a report from GlobalData, and is projected to grow at a compound annual growth rate of 13% until 2025. This is likely a surprise to most people. What isn't a surprise is that every single person with a smartphone has some kind of game to play on it when they have a few minutes to spare.
This rise of mobile gaming has contributed to the growing sensation of the gaming industry, which includes video game live streams and esports competitions. It's thanks to companies like NVIDIA and Micron Technology producing advanced graphics cards and memory that we are able to enjoy games on a variety of platforms, but the explosion of the video game market has given opportunities for a variety of industries to benefit. The obvious are pure-play companies producing games, like Activision Blizzard and Take-Two Interactive. Less obvious plays include Amazon and Microsoft, which contribute to the streaming industry with cloud infrastructure.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) made a big stab at jumping in when it attempted to purchase game streaming company Twitch, but ultimately didn't follow through. But Alphabet and its Google subsidiary clearly see the potential growth in gaming, bringing to market a catalyst that will change the gaming industry forever.
Source Fool.com
