The Covid-19 pandemic caused gigantic ripples throughout the business world. While most sectors struggled to stay afloat during these uncertain times, there was probably a silver lining for the video game industry. Some elements of the games industry thrived in this situation, while others suffered several setbacks. At Gamecloud Technologies, we are curious about how the gaming industry will cope with these circumstances. This blog will explore how the pandemic affected the video games industry and how the post-pandemic industry will look like.
Changing work culture and impact on business
The most notable change brought upon by the pandemic was a new work culture. According to a survey conducted by Game Developers Conference (GDC) with 2500 participants, 70 percent of the developers have switched to working from home. Remote working has become the new norm. Not only this, but this medical emergency has also had a profound effect on the core business activities and revenue generation of studios.
Thirty-seven percent of survey takers reported little to no change in their revenues. While nearly a third of developers reported a decline in their income during this time. In contrast, nearly the same amount said that they saw an increase in sales. Despite the sales figures going up for some of them, there is no denying that those studios must have faced difficulties.
Challenges faced by developers
The developing community was hit hard by the Covid-19 pandemic, both financially and mentally. Several studios witnessed decreased sales, which led them to cut salaries or retrench some of their workforce. Although 62 percent of survey takers reported no change in their household incomes, nearly 25 percent say that their household income had fallen due to the coronavirus emergency. Moreover, many game makers didn’t adjust too well with a remote working environment and witnessed low productivity levels. Those with families and children were too busy carrying out their parental duties and household chores.
Other issues like isolation, poor communication, and lack of access to critical tools proved to be a hindrance in executing their professional duties. Furthermore, the most pressing issue was unexpected absenteeism and empty studios, leading to delayed or canceled projects. According to GDC’s report, roughly a third of developers saw at least one project being delayed.
Besides, due to the higher number of players during the quarantine, the majority of the game studios have witnessed an extra load on their IT infrastructure. In another study, nearly 84 percent of participating companies said that their IT resources were being overworked.
Future prospects and post-pandemic scenario
Even though the situation looks pretty grim at this moment, eventually, it will pass, and we must prepare for the post-Covid scenario for the gaming industry. Studios are always looking to expand into new markets, and the pandemic has put a halt to that. While venturing into new territories, developers identified some geographical areas as riskier than others from a technical standpoint.
These territories include India, Southeast Asia (including China), North America, and Western Europe. Many game creators are worried about growth, and 30 percent of them believe that medical emergencies like this could hamper their prospects. Changing user preferences and vulnerability to cyberattacks were other issues that came up.
In this environment, external QA partners like Gamecloud Technologies can be of tremendous help to studios. Game testing outsourcing is a practice we’ll see far more in the future. By outsourcing some non-developmental activities to external partners, game companies can unburden themselves and save precious resources.
Conclusion
The video games industry will look a lot different after the pandemic is over. At Gamecloud Technologies, we believe it is our duty to help our clients to adapt and transition smoothly in the new working environment. Despite facing several setbacks, the gaming industry continues to survive and entertain us.
