How Gaming is Changing the Media Landscape

TL;DR

Gaming has overtaken the media it once looked up to: the industry has 2.4 billion players and generates $148 billion in annual revenue, making it bigger than music, bigger than the box office, and larger than the two combined. Former EA and current Unity CEO John Riccitiello explains how the shift from 2D to 3D, offline to online, and non-social to social drove that growth, and how the same real-time 3D technology is now reshaping film and other industries. Read on for what changed and why Unity sits at the center of it.

Transcript

at Bass there's only a couple hundred million people in the world that will touch a console in a given generation but mobile is well north of two billion and so you know you can reach more users and when you combine those audiences you get the people that pay the most to participate together with the largest possible audience so I want to start by ... Read More

Key Insights

• 🎼 The gaming industry has surpassed the music and film industries in size, generating $148 billion in annual revenue.
• 👾 Technological advancements have driven the industry's growth, enabling 3D games, online connectivity, and social interactions.
• 👾 Unity simplifies game development by providing underlying technology and an editor for content creation, accelerating the production process.
• 😵 Cross-platform and multi-platform gaming allows games to reach a larger audience, combining the capabilities of different platforms.
• 💁 eSports has emerged as a popular form of entertainment, attracting huge audiences and celebrity gamers.
• 🗾 The gaming industry is expanding globally, with significant contributions from China, Korea, Japan, and the Western markets.
• 👻 Real-time 3D technology will revolutionize consumer experiences, allowing users to immerse themselves in virtual worlds.

Questions & Answers

Q: What has driven the gaming industry's rapid growth?

According to Riccitiello, the biggest factor is the scaling of the industry driven by technology. Available compute grew many millions of fold and networks improved, so games went from 2D to 3D, from non-interactive to interactive, and from non-social to social. Combining the players who pay the most to participate with the largest possible audience expanded the market dramatically.

Q: How big is the gaming industry compared to music and film?

The industry has 2.4 billion players and generates $148 billion in annual revenue. It is bigger than music and bigger than the box office, and now larger than the combination of the two. Riccitiello notes the real player count is even higher, since 2.4 billion excludes much of China, putting it easily north of 3 billion, more than the number of TV watchers or music listeners.

Q: How does Unity simplify game development?

Unity provides an underlying technology base that handles rendering pixels, animation, sound processing, lighting, basic UI/UX, and physics, so developers don't have to write that code themselves and can focus on content. It also replaced hand-coding with an editor, used much like an Excel spreadsheet, and then composites the code for over 30 platforms, from Oculus and HoloLens to Android, iOS, Xbox, PC, and Mac.

Q: Why is mobile so important to gaming's reach?

Only a couple hundred million people worldwide will touch a console in a given generation, while mobile reaches well north of two billion. Reaching more users on mobile, and combining that audience with the console and PC players who pay the most to participate, gives games both the largest possible audience and strong monetization.

Q: How is game technology affecting industries beyond gaming?

When you press a button in a game, you create a frame never seen before in a sixtieth of a second, whereas producing a frame in a traditional tool from Adobe, Autodesk, or Pixar's RenderMan could take an hour, a day, or a week. Riccitiello says this real-time performance is becoming the new standard for how films are made and is being adopted across architecture, engineering, manufacturing, and other industries.

Q: Who is John Riccitiello and why is his perspective relevant?

John Riccitiello has had a front-row seat in the games industry for over two decades, first as CEO of EA and now as CEO of Unity, a company that sits at the center of much of the games ecosystem. That vantage point lets him explain both how the industry scaled and how its technology is spreading to other fields.

Q: How has gaming changed since the 1990s?

Going back to 1997, all games were 2D because CPUs and GPUs couldn't power 3D, online play wasn't possible since you couldn't connect to another live player, and you were largely strapped to a device under your TV or a large desktop PC. Rising compute and better networks removed those limits, turning gaming interactive, online, and social.

Summary

In this video, John Riccitiello, CEO of Unity, discusses the many changes that have driven the games industry forward. He talks about the scaling of the industry driven by technology, the shift from physical to digital gaming, the rise of multiplayer and social experiences, the emergence of eSports, the importance of international markets, and the future of cloud gaming. Riccitiello also explains what Unity is and how it has revolutionized game development, allowing developers to focus on content creation rather than code writing.

Questions & Answers

Q: What are the most impactful changes that have driven the games industry forward?

One of the most impactful changes is the scaling of the industry driven by technology. In the past, games were limited by the technology available, but now there are more players in the world than there are TV watchers or music listeners. Additionally, games have become more interactive, social, and 3D, thanks to advancements in technology.

Q: How has Unity revolutionized game development?

Unity has changed the game for developers by providing an underlying technology base that allows for easy and instant creation of interactive experiences. Developers can focus on content creation rather than writing code, thanks to Unity's editor tools. Unity also composites the code for various platforms, reducing time, cost, and effort for developers.

Q: How has the games industry shifted from physical to digital gaming?

In the past, games were distributed via physical media such as CDs, DVDs, and Blu-ray discs. However, with the rise of digital gaming, physical media is becoming less important. Consumers can now download games directly from platforms like Steam or the Epic Store. This shift allows for more innovation and content creation without the constraints of physical media.

Q: How has the rise of multiplayer and social experiences affected the games industry?

Multiplayer and social experiences have become integral parts of the games industry. Players now have the opportunity to play with and against other live players, which provides a more compelling and dynamic experience. Human opponents are more interesting than AI, and social interactions add another layer of immersion to games.

Q: What is the significance of eSports in the games industry?

eSports, which involves competitive gaming between professional players, has grown into a massive industry. People now watch others play games on platforms like YouTube and Twitch. eSports has become a social and cultural phenomenon, with massive audiences and celebrity gamers. It is an important aspect of the games industry and is expected to continue growing.

Q: How has the international market influenced the games industry?

The games industry is truly global, with significant contributions from different regions. China, Korea, and Japan are major players in the gaming market, with some of the world's largest gaming companies originating from these countries. Additionally, Western Europe and the United States also contribute to the industry. The international market has expanded the addressable market for games and has brought innovation from different regions.

Q: How do cloud gaming and streaming technology impact the games industry?

Cloud gaming allows players to play games without the need for a physical console. Instead, they can use a controller and play games on various screens and devices. However, gaming is different from streaming movies or music due to the need for low latency and real-time interaction. The future of gaming will involve a combination of technologies, including streaming, edge computing, and local applications, depending on the type of content and performance requirements.

Q: Will the significant investment in games by companies like Epic and Valve continue?

The gaming industry is experiencing a significant investment from various companies as they aim to build their direct-to-consumer relationships. Just like in the music and film industries, companies like Netflix, Amazon, and Disney have heavily invested in content creation and distribution. While the future of the industry is uncertain, there is no doubt that there is immense value in building a direct relationship with consumers, and the competition among companies will continue.

Q: How does Unity work outside of games?

Unity has expanded beyond games and is being used in various industries. In the automotive and architecture sectors, Unity provides high-fidelity tools for simulation and visualization purposes. It has also found applications in industries like film, television, and entertainment, allowing for the creation of immersive and interactive experiences. Unity's technology is adaptable and can be applied to different sectors beyond games.

Q: How has Unity evolved in terms of its usage?

Unity was originally adopted by indie developers due to its simplicity and ease of use. Over time, Unity has grown to become the go-to engine for game development, with over half of all games and two-thirds of all AR/VR content built using Unity. It has expanded its capabilities, attracted larger studios, and penetrated various industries beyond games. The investment in technology and engineering has made Unity a dominant player in the market.

Takeaways

The games industry has experienced significant changes driven by technology, scaling the industry and reaching a larger audience than traditional media. Unity, a game development platform, has played a crucial role in revolutionizing game development by providing tools and technology that make content creation easier. The shift from physical to digital gaming has unlocked new possibilities, such as multiplayer and social experiences, and the rise of eSports has brought a new form of competitive gaming to the forefront. The international market, particularly in China, Korea, and Japan, has greatly influenced the industry. Cloud gaming and streaming technology are expected to shape the future of gaming, but there will be a combination of technologies used depending on the content and performance requirements. Unity has also expanded beyond games and is being utilized in various industries, such as automotive, architecture, and entertainment. The industry as a whole is experiencing significant investment as companies vie for a direct-to-consumer relationship.

Summary & Key Takeaways

• The gaming industry has 2.4 billion players globally and generates $148 billion in annual revenue, surpassing the music and film industries in size.

• Technological advancements have transformed the industry from 2D to 3D, from non-interactive to interactive, and from non-social to social, attracting a larger audience.

• Unity, a leading company in the gaming ecosystem, provides technology that simplifies game development and enables games to be created and deployed on multiple platforms.