The game industry is constantly evolving, and understanding its intricacies requires a deep dive into data and analysis. Joost Van Dreunen, a gaming strategy professor at New York University, has dedicated his career to unraveling the complexities of the game industry through data. In a recent interview, Van Dreunen shared his insights on the current state of the industry and upcoming trends.
One major development in the game industry is the acquisition of Activision Blizzard by Microsoft for a whopping $68.7 billion. While this acquisition may seem like a positive move for the industry, it was followed by a wave of layoffs, with 1,900 people losing their jobs. This is part of a larger trend, as game companies have laid off a total of 10,500 employees in 2023 and another 8,000 so far this year. These layoffs highlight the cyclical nature of the industry and the need for companies to adapt and cut costs.
Another significant development is Apple’s push into spatial computing, which has the potential to transform the gaming experience. Additionally, Disney’s $1.5 billion investment into Epic Games and the European Union’s decision to enable alternative app stores are shaping the landscape of interactive entertainment in 2024.
Van Dreunen is launching a new company called Aldora, which focuses on tracking consumer behavior beyond just playing time and spending. This data-driven approach aims to provide a comprehensive understanding of how players engage with games as a service and transition to games as a platform. By expanding the scope of data analysis, Aldora aims to help game companies and brands make informed decisions and drive innovation in the industry.
In addition to his work with Aldora, Van Dreunen is also working on his second book, which explores the transition from games as a service to games as a platform. He is fascinated by the ways in which games like Roblox and Fortnite have expanded beyond traditional gaming and become platforms for various behaviors, such as watching movies or building things with others. Van Dreunen believes that the ability to play, create, and connect in these virtual worlds is crucial for game companies to recruit and retain users.
The interview with Van Dreunen also touched on the concentration of capital in the game industry. Large investment firms like Blackrock and Vanguard have significant holdings in major game companies, giving them the power to influence the flow of capital and dictate the direction of the industry. This concentration of power has implications for game developers and content creators, who may face challenges as platforms prioritize their own interests.
One of the key takeaways from the interview is the need for the game industry to embrace change and adapt to new technologies and business models. Van Dreunen believes that the industry is at a watershed moment where it needs to collaborate more closely with non-endemics, such as brands and advertisers. By leveraging data and exploring new avenues for revenue generation, game companies can navigate the changing landscape and thrive in an increasingly competitive market.
Overall, Van Dreunen’s insights shed light on the role of data in understanding the game industry and the challenges and opportunities it faces. The industry is constantly evolving, and staying ahead requires a deep understanding of consumer behavior, market trends, and the impact of technological advancements. By harnessing the power of data, game companies can make informed decisions and shape the future of interactive entertainment.