Analyzing the Impacts of Social Media on the Gaming Industry

This report provides a comprehensive analysis of the impact of social media on the gaming industry. It begins with an introduction outlining the increasing internet access and its influence on various industries, particularly the gaming sector. The report highlights the growing popularity of video games among young people and the flourishing gaming market. It then delves into the rationale behind the study, emphasizing the evolution of gaming from single-player to multiplayer online games, and the role of mobile games and social networks in expanding the player base. The problem statement identifies challenges such as declining revenues and marketing issues. The research aims to analyze the impact of social media on the gaming industry, identify issues, and recommend strategies for improvement. The literature review explores the emergence of gaming, the economics of the industry, the impact of social media, and online game addiction. Data findings and analysis, along with conclusions and recommendations, are also included to provide a complete overview of the topic.

Running head: THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
The impacts of social media on the gaming industry
Name of the Student
Name of the University

2
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Table of Contents
Chapter 1: Introduction....................................................................................................................3
1.1 Background.......................................................................................................................3
1.2 Rationale...........................................................................................................................4
1.3 Problem Statement............................................................................................................6
1.4 Aim, Objectives and Research Questions..............................................................................7
1.5 Research Structure............................................................................................................8
Chapter 2: Literature Review...........................................................................................................9
2.1 Emergence of gaming............................................................................................................9
2.2 Economics of the Gaming Industry.....................................................................................12
2.3 Impact of social media on gaming industry.........................................................................19
2.4 Online game addiction among adolescents..........................................................................24
Chapter 3: Data Findings and Analysis.........................................................................................27
3.1 Quantitative Analysis...........................................................................................................27
Chapter 4: Conclusion and Recommendation...............................................................................44
4.1 Conclusion...........................................................................................................................44
4.2 Recommendation.................................................................................................................46
References......................................................................................................................................48

3
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Chapter 1: Introduction
1.1 Background
Internet access has been increasing rapidly in market in 21st century. The increase in the
addiction of use of internet has been creating issues among young generation all over the world.
Internet has been able to create a boom in various industries including gaming industries
(Greenfield, 2014). Video games have become popular over the time in the digital age.
Maximum number of young child and teenagers have been playing video games on their
computers, mobiles and play stations. Gaming industry has been flourishing high in the market in
recent years. Increase in research literature on this topic has shown that video games effect not
trivial and have significant effects on health of children. Some of these effects have been well
researched and identified bad impact of violent games on aggression. Recent researches have
revealed number of positive and negative consequences of video game play. In his research
report for RW Baird, the researcher Colin Sebastian forecasted a 10% annual growth for the
overall gaming industry worldwide, reaching revenues of $80 billion in 2014 (Greitemeyer &
Mügge, 2014).
According to Andreassen et al. (2016), both the computer gaming market and social games
have been continuing in recent years with several console games. The focus of social networks
that have been linking lot of individuals all over the world. The growing number of members
over social media including Facebook where more than 500 million active users are present
(Pallesen 2016). Therefore, social media has been providing various opportunities to the gaming
industry.

4
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
The idea of video games have been initiated for decades and people have been enjoying it.
The original idea had been conceived in 1951 by a radio/television engineer, working for an
electronics company named Loral. There were two major markets for video gaming industry.
This market get peaked in 1982 by generating $8billion in quarters. There were various games
developed by third party for home consoles produced by Magnavox and Atari (Fox & Tang,
2014). The hardware manufacturers have been controlling development of games in the market.
The digitalization of games has opened up a whole new world of full endless possibilities. The
law of physical world has been changed, replaced and altered with new experiences in the video
games. Therefore, people have been enjoying games a lot in the market.
1.2 Rationale
Video games have been became an essential part of global entertainment and media over past
30 years. Games have developed form single player to multiplayer online role playing games
with various other gamers all over the world. Gaming has been main domain for young men and
boys and industry has focused on these target audience (Mazurek & Wenstrup, 2013). Mobile
games and social networks have helped in adding players with including women, children,
parents and even senior citizens who have been enjoying playing quizzes, puzzle games and
educational games. Game development studios have been giving away their applications free-to-
play in hope the players buy virtual goods in game.

5
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Figure 1: Characteristics of video gaming then and now
(Source: Granic, Lobel & Engels, 2014)
Video games have come down a long way for reflecting state of the art in consumer
electronics of the era. There has been great change form tapes and cassettes to store games to
modern digital games. Social media has helped in enhancing gaming industry in the market.
Most of the mobile games are popular among individuals in the market.

6
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Figure 2: Category of mobile apps used in past 30 days
(Source: Granic, Lobel & Engels, 2014)
However, there have been decrease in the revenues of gaming industry in recent years. The
market of gaming industry have been facing challenges of less marketing and not reaching up to
maximum number of people. Therefore, this research has focused on analyzing impact of social
media on gaming industry.
1.3 Problem Statement
Computer games have descended far for reflecting best in class in customer gadgets of the
time. There has been incredible change structure tapes and tapes to store amusements to current
advanced recreations. Web based life has helped in improving gaming industry in the market.
The greater part of the versatile recreations are prominent among people in the market (Anderson
& Jiang, 2018). Nonetheless, there have been decline in the incomes of gaming industry as of
late. The market of gaming industry have been confronting difficulties of less advertising and not

7
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
coming to up to most extreme number of individuals. Along these lines, this examination has
concentrated on investigating effect of web based life on the gaming business.
1.4 Aim, Objectives and Research Questions
The aim of research is focused on analyzing impact of social media on gaming industry.
Following are objectives of research:
 To analyze current state of gaming industry
 To identify issues in gaming industry
 To analyze impact of social media on gaming industry
 To recommend strategies for improving impact of social media in gaming industry
Research Questions are as follows:
 What is the current state of gaming industry?
 What issues are faced in the gaming industry?
 How social media has impacted gaming industry?
 How to improve impact of social media in gaming industry?

8
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
1.5 Research Structure
Figure 3: Research Structure
(Source: Created by Author)
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Data findings and Analysis
Chapter 5: Conclusion and Recommendation

9
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Chapter 2: Literature Review
2.1 Emergence of gaming
Video games are popular mode of entertainment in modern world. However, these mode
of entertainment had been evolved from many years ago. In recent history, various landmarks
have been marked as development and growth of serious games in the world (Adachi &
Willoughby, 2013). The young generations and teenagers have been affected by these games.
The increase in research related to video games and social media has helped in providing
development of video game companies. The emergence of video games have now shifted to
traditional video games to online video games. Various games have now focused on
Smartphones applicable video games that helps in connecting with target customers properly
(Egenfeldt-Nielsen, Smith & Tosca, 2013). This used to be played by around 50000 people for
six months. Gaming consoles have become popular in commercial centers and chain restaurants.
In late 1980s, computer consoles had been started to get connected with their devices with other
players. The real revolution in gaming initiated with the use of LAN connections and the internet
connectivity. Both of these have affected the gaming industry in a positive way. The size of
global video game market will accumulate USD 90.1 billion in 2020 from USD 78.6 billion in
2017 (Saleem, Anderson & Gentile, 2012). The concept of online gaming has come after the
emergence of the internet in the market. The evolvement of mobile video games have been
started with the emergence of smartphones in the market. There have been various mobile
games including Snake has been one of the popular video games in the mobile phones. Games
including Tetris and Snake were the first generation of mobile games. Computer games have
been turned into a basic piece of worldwide amusement and media over recent years.
Amusements have created structure single player to multiplayer online pretending recreations

10
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
with different gamers everywhere throughout the world (Singer & Singer, 2012). Gaming has
been principle space for young fellows and young men and industry has concentrated on these
intended interest group. Portable recreations and informal communities have helped in including
players with including ladies, kids, guardians and even senior natives who have been getting a
charge out of playing tests, baffle amusements and instructive diversions. Game improvement
studios have been giving endlessly their applications allowed to-play in expectation the players
purchase virtual merchandise in game.
Most of the games were played over computer. After release of smartphones in 2007,
there has been drastic change in the video gaming industry (Chorney, 2013). The first smart
phones have been released with lot of features that have been providing platforms for mobile
video games. Popular mobile platforms are Android, ios and Windows Phone. The number of
ios, apps on Apple App Store has increased from 500 to 1.5 million from 2008 to 2015
(Marchand & Hennig-Thurau, 2013). Games category has been the most dominating in the
search history of App Store. Digital games have been limited to consoles and computer that are
widely accessible on smartphones and tablets. In US, average game player age is 35 years old
(Przybylski et al., 2012).

11
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Figure 4: Game demographics
(Source: Giedd, 2012)
According to above figure, only 27 % of gamers were under years old. As per statistics of
Entertainment Software Association (ESA), gaming has been mainstream activity that is enjoyed
by both women and men. Children used to get smartphones and tablets from young age.
Therefore, they have been playing video games from young age. IT has resulted in minimizing
average age of game players from 35 years old (Giedd, 2012).
Mobile broadband has been increasing and affordable in the market. The below figure describes
about the increase in demand of mobile broadband in the global market.
Figure 5: Mobile broadband penetration by region
(Source: Giedd, 2012)

12
THE IMPACTS OF SOCIAL MEDIA ON THE GAMING INDUSTRY
Many countries have been controlling and restricting content available on the internet
(Yang, Asaad & Dwivedi 2017). For example, China has been known for implementing internet
censorship.
2.2 Economics of the Gaming Industry
The business of video games has been gaining profit in the entertainment industry. Games might
help in generating extraordinary turnover in limited days. The casual gaming industry has been
enjoying high revenue compared to console games. The revenue for hit games have been around
90% linked to normal margins of around 40 % for usual console game (Salter & Blodgett, 2012).
Due to huge revenue potential, competition has been huge for the industry. There are on average
10000 games uploaded over iTunes App Store each month (Terlutter & Capella, 2013).
Development of technology and consumer habits have been continuously changing with time.
The instability on the market leads to both successful and unsuccessful games in the market.
During the release of Pokemon Go in 2016, it became a huge success in the market. The virtual
economies of mobile games has been increased with time. According to Paavilainen et al.,
(2013), various virtual items and goods are sold inside video games which has been increasing
on daily basis. The most popular games have been made free-to-play (Gainsbury, Hing,
Delfabbro & King, 2014). However, there have been various online shops available in the game
from where users can buy virtual items for enhancing gameplay experiences. Web access has
been expanding quickly in the market in 21st century (Wakefield, 2016). The expansion in the
compulsion of utilization of the web has been making issues among youthful age everywhere
throughout the world. Web has had the option to make a blast in different ventures including
gaming businesses. Computer games have turned out to be prominent over the time in the
computerized age. Most extreme number of youthful kid and young people have been playing