Video game startups have exploded in popularity like never before
Asia Pacific and North America lead the industry in revenue, although Latin America is increasingly following, and is the region currently showing the highest numbers.
What are the outstanding startups and what are the challenges they face on their way to success?
Entertainment is one of the fastest growing industries in recent years, and recent statistics show that video game startups are proliferating like never before. But what are the reasons for this entertainment boom? In this article we will analyze some of the most interesting data that studies show in this regard, in order to properly consider the current situation in the sector and what we should expect in the coming years.
In principle, emerging technology in video games creates new business opportunities. From virtual and augmented reality to artificial intelligence, developments are powering the creation of numerous games and applications and creating possibilities for entrepreneurs globally.
According to reports from Newzoo, Asia Pacific and North America lead the video game industry in revenue. Although they are being followed increasingly closely by Latin America, the region currently showing the highest numbers. However, the latter still faces some challenges that others have already overcome.
Entrepreneurs take advantage of the latest technology
To better understand how the gaming industry is embracing emerging technologies, let's take a look at some examples of startups, which are now experiencing the most important developments.
game board
Gameboard is an American startup that has developed a 16-inch touchscreen device with a custom operating system that it describes as the "ultimate gamepad". This device uses advanced tracking of game pieces and hand movements, providing a unique experience. This is probably the best option for board games if we want to create a more virtual alternative.
Gameboard has been recognized as one of the fastest growing companies and has won a number of awards for its innovation in gaming technology. Additionally, they are backed by investment from TheVentureCity.
Live Games Company
Another case of how technology can drive video game entrepreneurship is The Live Game Company. Of Colombian origin, they use sound technology to create story-based tabletop RPGs. Players can interact with the characters in the game via voice commands, which creates an immersive and exciting experience for players than they are used to before.
Live Game Company has won numerous international awards for its improvement in game technology and has been recognized as one of Colombia's most innovative technology companies in this sector.
Challenges of adopting other emerging technologies
Besides the specific cases of emerging video game companies such as those mentioned here, the region continues to face challenges to adopting emerging technologies in the video game industry, such as a lack of access to services or financing for new companies. It's something that's being worked on, but it's still too late, of course.
In any case, Latin America is emerging as a suitable center for entrepreneurship in the video game industry. Thanks to the innovation and creativity of entrepreneurs. Although they have to show enough ability to implement the latest technology with fewer resources, and this can mean various setbacks - such as exorbitant investments - they somehow manage to survive.
Another challenge is that integration of new technologies can be complex and take longer than expected. It could also require changes to existing infrastructure, which can add to costs and delay implementation while the rest of the world does not sit still but moves on.
conclusions
Consumers can also be reluctant to embrace new technologies, which can limit the number of people who can experience games with the emerging technology. This can be especially true for those projects that have a high price tag or are seen as too complex.
For example, the Oculus Quest 2 headset currently costs about $299 in Latin America. The average basic income varies greatly across the region, but in Colombia the minimum wage is about $7 per day. In other words, the user would need to work for more than a month to be able to get this kind of advanced technology.
Finally, a lack of specialized talent can be a challenge for some video game companies that want to embrace emerging technologies. Implementing emerging technology requires skills to implement and use it, which can limit companies' ability to take advantage of the technology in their products.
According to a study by the Inter-American Development Bank, Latin America is growing in tech talent with strong skills in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things.
The report indicates that the region has the potential to become a major player in the global technology industry. But everything will depend on the momentum enjoyed by the sector and how much investors and the public bet on it.
Do you know other video game startups? What contributions do they make to the industry?
