How video game companies are making $365 billion in revenue per/year.
The business of video game companies
This week on YouTube Nuggets we cover the business of video game companies and they become Sass products.
The business of video game companies is evolving rapidly. With an increasing number of people playing, broadcasting, and watching esports, the already booming, multi-billion-dollar gaming ecosystem is reaching even greater heights.
1. The global video game market is projected to see more than $365 billion in revenue for 2023, which is up from almost $320 billion in 2022
Some of the top video game companies include CD PROJEKT RED, SQUARE ENIX and TAKE TWO INTERACTIVE
CD Projekt Red is a game development studio founded in 2002. It develops and publishes video games for personal computers and video game consoles. The studio’s flagship titles include The Witcher series of games, Thronebreaker: The Witcher Tales, GWENT: The Witcher Card Game and the futuristic AAA role-playing game — Cyberpunk 2077. The business philosophy of CD Projekt Red rests upon two pillars: uncompromising dedication to quality in the videogame and service development process, and retention of financial and creative independence.
Square Enix Holdings Co., Ltd. is a Japanese multinational holding company, video game production enterprise and entertainment conglomerate. It releases role-playing game franchises, such as Final Fantasy, Dragon Quest, Star Ocean, and Kingdom Hearts, among numerous others. Outside of video game publishing and development, it is also in the business of merchandise, arcade facilities, and manga publication under its Gangan Comics brand.
Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The Company develops and publishes products principally through Rockstar Games, 2K, Private Division, and Zynga.
In terms of market capitalization, Take-Two Interactive has a market cap of $18.9 billion, Square Enix has a market cap of $5.9 billion, and CD Projekt Red has a market cap of $6.6 billion.
Several key takeaways can be learned from these companies:
1. **Dedication to quality**: CD Projekt Red's business philosophy rests upon two pillars: uncompromising dedication to quality in the videogame and service development process, and retention of financial and creative independence.
2. **Diversification**: Square Enix is not only involved in video game publishing and development, but also the business of merchandise, arcade facilities, and manga publication under its Gangan Comics brand.
3. **Strong brand recognition**: Take-Two Interactive Software, Inc. develops and publishes products principally through well-known brands such as Rockstar Games, 2K, Private Division, and Zynga.
4. **Innovation**: All three companies are constantly pushing the boundaries of what is possible in the video game industry and are known for their innovative games and technologies.
These are just a few of the many lessons that can be learned from these successful companies.
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