Will the corona crisis revolutionize social gaming?
By Martijn Rozemuller, Managing Director, Head of Europe, VanEck
A brave new world where technology blends with human social interaction has been a common theme throughout 20th and 21st century literature and cinema. Think of Isaac Asimov’s Robot series of novels, or the cult films Blade Runner and Matrix.
Many people say that the world will not be the same after the coronavirus crisis. For sure, there will be a renewed focus on healthcare systems, companies’ supply chains and maybe even taxes. But it’s also likely that the virtual world will gain ground on the physical.
Use of online platforms has been gaining ground for some time, but the crisis has shocked people into a sudden change of habits. Confined to their homes, people are living online as never before – whether using social networks, taking conference calls or playing video games. The genie is out of the bottle and there’s no putting it back.
As discussed in a recent publication, demand for video games and esports is booming. Stepping up to satisfy demand, physical sports or leagues clubs that have had to suspend all events are launching their own esports leagues as an alternative. For example, Formula 1 announced at the end of March that it would launch the F1 Esports Virtual Grand Prix Series, featuring a number of current F1 drivers.
Today’s virus crisis has triggered a change in human behaviors, then video gaming companies seem likely to play a role in providing the means for this to happen. All over the world, people are socializing digitally through video games rather than mixing face to face. At some point coronavirus will fade into the past, but its legacies will last, and one of them is likely to be a far greater acceptance of digital socializing.
Global revenues from video games (USD bn)
Source: Newzoo Global Games Market Report 2016, 2017, 2018 and 2019. Numbers for 2019 -2022 are estimates
Potential scenario for global revenues from video games (USD bn)
Source: Statista, VanEck Analysis.
Martijn Rozemuller joined VanEck in 2018 with the acquisition of think ETF´s. He serves as Head of Europe for VanEck and is responsible for Sales, Marketing, Compliance, Legal, and Human Resources.
Prior to joining VanEck, Mr. Rozemuller founded and served as Managing Director of Think ETF’s. He began his career as a trader in 1995 at the Dutch trading firm Optiver where he was partner. Mr. Rozemuller received a Master’s Degree from University of Twente in Business Administration and Mechanical Engineering.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.