Games Market Trends to Watch in 2023 by Newzoo

This new year will likely be full of changes, like in 2022. Due to the rising cost of living, the flow of money into video games is less, which results in higher game costs. But we can say that the service-based approach leads the market regarding AA and AAA titles. On the other hand, cloud providers are investing more daily to provide PaaS solutions.

In addition, The Last of Us has more than demonstrated the strength and great potential of an effective transmedia (cross-platform storytelling) strategy. Deadline reports that the lauded show that bridges video games and traditional TV drew 4.7 million viewers in its premiere, making it HBO’s second-biggest debut since 2010, behind House of the Dragon.

Now, read on to learn about the last three significant trends to watch out for this 2023 in the video game market.

Generative AI will simplify game development

Since ChatGPT shocked the world in November 2022, AI systems have been very much on people’s minds. The gaming industry is no stranger to the consequences of rapidly advancing technology.

Generative AI can produce persuasive words, graphics, 3D creations, and even videos. While visual accuracy is not yet up to par, generative AI can help studios drastically reduce the time spent on development.

A staggering amount of artwork and other visual assets are required for game development. In addition, each design element requires a considerable number of variations. By providing libraries of reusable design components, game engines have reduced the need for large volumes of assets to some extent, but generative AI can further accelerate this process. Furthermore, thanks to AI and machine learning technologies, they can alter game creation in a way that is particular to this art form, given how dependent game creators are on interactive virtual elements.

Feedback to developers

AI technology may be the answer that developers of virtual worlds are looking for, where they can create assets with styles adjustable to their specifications. Generative technologies can produce infinite versions of images in a highly iterative fashion at a pace that exceeds the capabilities of any developer or designer.

In addition to holding promise for aesthetics and design, AI technology can help developers populate vast online worlds.

In 2023 and the coming years, we foresee AI-driven advances accelerating change in the gaming industry. While we have only just begun in many ways, what we are witnessing is astounding and represents a revolution in the video game industry.

Virtual reality games will continue to grow

Virtual reality games are expanding and gaining a following, especially now that they are no longer limited to small companies creating games for a small audience of headset owners. This growth is likely to accelerate this year.

Quest 3 and PSVR 2 both headsets feature a multitude of in-house and third-party content. Jim Ryan stated at CES in January that more than 30 games, Including Gran Turismo 7 and Horizon Call of the Mountain, are being created for the PSVR 2 launch window.

With more significant investment in VR content, more users will be attracted. This will lead to greater participation from a wide range of companies and open the door to greater acceptance of VR games soon.

VR gaming remains a niche

This trend has some limitations. VR gaming will remain a niche market, especially given the macroeconomic environment. Since VR technology still has a somewhat restricted content selection, consumers will opt for traditional gaming platforms rather than paying a premium.

On the other hand, Apple is making a high-end VR headset with cutting-edge technologies to compete with gaming companies outside the industry. This device, aimed at business users and hardware enthusiasts, will drive consumer interest in VR and mixed-reality products. In addition, VR gaming platforms may look to Apple’s advancements as a possible direction for the future.

VR game makers will also accelerate research with new and more varied game mechanics to attract more players. One-time purchases of titles and other simple monetization methods may change to more complex hybrid forms that are already commonplace in the video game industry.

Car video games may be closer than you think

We recently learned some exciting news about incorporating gaming into the driving experience, which leads us to believe that this category is not as far away as we thought.

In October 2022, BMW unveiled an intriguing collaboration with AirConsole to offer in-car casual gaming via the cloud. On the other hand, Tesla incorporated Steam into its vehicles in December. Finally, in January, NVIDIA announced that some electric cars from Hyundai, BYD, and Polestar will now support the GeForce NOW cloud gaming service.

All of these changes mark an exciting shift toward automotive gaming.

It would help if you considered the downtime of cars, especially electric ones that need charging. Then, small doses of gaming could fill that largely unoccupied time.

For two reasons, right now seems like the ideal time for this growth. First, while onboard computing power is limited in modern cars, in-car entertainment systems are improving rapidly. Cloud gaming can handle the demanding computational tasks of this cast. Secondly, charging is necessary for electric vehicles, especially before long trips. Therefore users may have enough downtime for one or several Fortnite games.

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