Entrepreneurship in The Game Industry
Entrepreneurship in the Game Industry
Entrepreneurship requires one to possess innovative ideas that are in most cases, hitherto unheard of, and converting them into activities and products that are relevant to human needs. The gaming industry, and particularly the online gaming sector is one field that has been booming due to increased entrepreneurial activities. Game developers from different parts of the world are continuously coming up with various types of games that guarantee gamers an overwhelmingly impressive experience. While the internet has contributed greatly to the sector’s growth, several other factors have equally played a significant role in enhancing its growth. The present paper focuses on reviewing relevant literature on this field with the intention of identifying the key factors that inform growth, and the gaps that can be filled to better user experience.
In a study that sought to determine the key factors and business models that have led to fast growth in the game industry, Osathanunkul (2015) established that the adoption of modern business models, and particularly the move to internet based games has contributed immensely to the fast growth witnessed in the sector. The study established that the use of marketing and supply methods that are accessible to customers has been central to success of the industry. These findings are congruent with the results of the study conducted by Kepenek (2018). The latter sought to investigate the key elements of entrepreneurial mindset that has contributed to the development of the gaming industry in Turkey. Kepenek noted that the move to internet based games has made accessibility easy and convenient, therefore contributing to the sectors growth.
Lee (2016) also delved into analyzing the growth and economic impact of the gaming industry. Lee’s study focused on the Taiwanese and Las Vegas gaming sectors. That study established that the sector has contributed significantly to the economies of the respective regions. In particular, the game industry has led to the growth of other support industries especially the technology sector. Lee (2016) also noted that the presence of a generation of gamers that have had access to games from an early age has contributed greatly to the increase in entrepreneurial activity in the gaming sector.
Lee’s findings are similar to the outcome of the study conducted by Nazamuddin (2016). The latter sought to investigate the impact of the creative industries in the Indonesian economy. Nazamuddin noted that the promotion of the creative sector, and particularly modern gaming has contributed immensely towards the growth of the economy. The study also established that an internet and technology savvy generation that draws satisfaction from gaming has fueled entrepreneurship activity in the industry. However, while Lee’s and Nazamuddings studies have highlighted the economic impact, and the factors contributing to the growth of the gaming sector, the authors failed to outline the challenges, as well as the interventions that can be put to sustain the sectors growth.
The study by Niracharapa (2014) focused on accessing the level of competitiveness in the Thai animation industry. In particular, the study observed that competition in the online gaming sector has been informed by the rising demand especially among the technology savvy generation. Niracharapa avers that entrepreneurs in the sector are leveraging on technology to come up with impressive games that can enable them to capture a large market share. These findings are consistent with the findings of Calcagno & Walker (2016) whose study established that technology and the internet has been instrumental in fuelling entrepreneurial activity in the US gaming sector.
Generally, the gaming industry is growing at an unprecedented pace, thanks to the emergence of technology and the internet. The rising demand among the modern generation of game lovers has been instrumental in fueling the industry’s growth and development. As demonstrated by the above literature review, various factors among them competition, and rising demand are key to the sector’s growth. However, the studies have failed to highlight the role of government regulation, and skill training and development in the increase in entrepreneurial activity in the sector. Therefore, future research should focus on filling this gap.
References
Calcagno, P. T., & Walker, D. M. (2016). A review of regulatory theory and the US casino industry. Journal of Gambling Business & Economics, 10(1).
Kepenek, E. B. (2018). Entrepreneurial Mindset in Video Gaming Sector: Evidence from Turkey. Ankara Üniversitesi SBF Dergisi, 73(2), 641-664.
Lee, J. L. (2016). Taiwan MICE development—from the benefits of the combination in MICE and gaming industry of Las Vegas experience. Journal of Tourism and Hospitality Management, 4(1), 47-61.
Nazamuddin, N. (2016). Promoting Creative Industries to Accelerate Indonesian Economic Growth. In Conference: International Conference on Multidisciplinary Research (ICMR), At Hasanuddin University, South Sulawesi, Indonesia (Vol. 1).
Niracharapa, T. (2014). Competitiveness of animation industry: The case of Thailand. World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 8(7), 2257-2262.
Osathanunkul, C. (2015). A classification of business models in video game industry. International Journal of Management Cases, 17(1), 35-44.
