Gaming’s Gathering Power: Despite All The Challenges

Deniz Kekec

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The gaming industry has experienced a whirlwind of changes over the past four to five years, largely driven by shifting ad tech dynamics and broader geopolitical events.

Where are we now?

Gaming > Hollywood + Music

With global revenues projected to surpass $200 billion in 2024, Gaming has decisively outpaced both the Hollywood & Music industries combined, together generating around $175 billion.

Our industry saw a sharp rise in 2020 and early 2021, driven by the pandemic as people turned to games for connection and entertainment.

However, this growth was followed by a notable decline as the world began reopening, leading to a more competitive and unpredictable landscape. Alongside the effects of the COVID-19 pandemic, political instability has further caused studios and investors to proceed cautiously. The challenges have continued to mount, from Apple’s App Tracking Transparency (ATT) policy to stricter data privacy regulations and legal battles between studios and digital marketplaces.

Evolving or?

Mobile Gaming has come a long way, evolving from Premium titles to Freemium models and Hypercasual experiences.

Now, we’re seeing exciting shifts toward hybrid monetization strategies as players look for more meaningful engagement. However, the hypercasual market is getting a bit crowded with copycat games, leaving many players craving fresh, innovative ideas that break free from repetitive genres like Match-3.

While exciting innovations are happening, here is the downside: It became heavily focused on business metrics like LTV, CPI, and retention rates. While these are important for survival, the relentless chase for profitability can sometimes overshadow the creativity and cultural richness that make gaming special.

The pressure to deliver quickly and generate profit can stifle creativity in the industry. Developers often find themselves racing to churn out games for short-term gains, leaving little room for experimentation or passion projects.

Even though the industry has sensed these hurdles for some time, navigating them remains far from easy. Speaking from November 2024, it’s clear that the landscape is still fraught with difficulties. Over the last few years, I’ve witnessed people losing jobs, while others have voluntarily left the industry, likely exhausted by the uncertainty. As we look ahead, there are hopes that things will stabilize and improve by 2026, but I remain cautiously skeptical about this optimism.

Where do we go from here?

Honestly, not sure… However, my dear friend Ömer & I felt compelled to write this piece for those who share our passion for gaming. Despite the challenges, there is still something powerful about the way games bring people together and inspire them.

Gaming offers a unique blend of creativity, technology, and community, making it unlike any other industry. The joy of building worlds and experiences that connect people globally is both rewarding and endlessly fascinating.

Through my marketability tests over the last few years, I’ve had the opportunity to dive into diverse gaming personas—whether it’s a 15-year-old high school student or a 65+ retiree, there’s usually a game that resonates with everyone. This has reinforced for me that gaming is a unifying tool, capable of fostering community.

Research has shown that video games don’t just bring people together; they can also support mental health. Games can improve attentional control, cognitive flexibility, and information processing. In clinical settings, games are used as tools to break the ice between clients and therapists, helping to build stronger relationships. They have even shown promise in enhancing adolescent mental health, providing an accessible and stigma-free form of support for those who may not have access to traditional mental health resources.

One particularly inspiring initiative is Project Hope, an innovative intervention that uses a game-based learning platform to support refugee children. Data from a field experiment showed significant improvements in language acquisition, coding skills, executive functioning, and overall hopefulness. Similarly, a recent UNHCR Project leveraged video games to engage refugee communities in non-essential but vital activities, offering them much-needed relief and support. Moved by this, I reached out to people involved in the UNHCR project to learn more about their experience and offer any third-party help. These conversations inspired me to establish a GameLab for displaced people in Hamburg, bringing this community together at InnoGames. When I pitched the idea to my supervisors, they were immediately enthusiastic. InnoGames has a strong track record of supporting community initiatives, and I feel fortunate to work for a company that shares this awareness and commitment.

With GameLab, our goal was to help refugees explore their gaming identities while experiencing the cognitive and emotional benefits that gaming can offer. We envisioned the event as a day of connection and discovery, where participants could engage with carefully selected games, meet our team, and gain valuable insights into the gaming industry. Through this initiative, we aimed to create a supportive and enjoyable environment, harnessing the therapeutic potential of games. We believe that gaming can play a significant role in improving mental health and well-being, especially for those navigating the challenges of displacement.

Once we received the green light to proceed, we started developing an agenda and reached out to several accommodation centers in Hamburg (known as Fördern & Wohnen in German). We structured the event carefully, even though a single day wasn’t enough to fully explore the potential of GameLab. The GameLab agenda was structured to facilitate both learning and engagement, offering a mix of informative discussions and hands-on gaming experiences. The morning was dedicated to introduction, company & event presentation, and discussions on the industry or different game products. We aimed to explore how games are made, the diverse types of players (personas), and the positive impact gaming can have on mental health, especially for displaced individuals. After a lunch break, everyone should be engaged in gaming together, trying out a selection of games chosen to suit different play styles and preferences. The goal is to foster a sense of community while allowing participants to apply the insights discussed earlier. On the day of GameLab, things went smoothly. We welcomed four refugees from diverse backgrounds, all with a strong command of English, so communication was seamless. What made the event even more engaging was discovering that most of the participants had been game developers in their home countries. This added an unexpected and exciting dynamic to the discussions, as talking about games became more fun and enriching than I had anticipated. We concluded the day with multiple game sessions and insightful conversations about the gaming industry, leaving us all inspired by the shared passion for gaming.

After taking a few days off to reflect on the event, I found myself asking, “What’s the takeaway from all of this?” It was, without a doubt, a great social event, but I wanted to dig deeper into its significance.

What I realized is that while the gaming industry is increasingly focused on business metrics—something we all have to prioritize given the current climate—this type of community initiative served as an important reminder of why we continue working so hard. There is also a growing demand from different communities to host more of these gaming events, and I believe that even more people can push for similar ideas. Beyond the numbers, gaming has the power to bring people together, inspire creativity, and provide meaningful support to those in need. GameLab was a clear example of how our industry can make a real difference, not just commercially but socially and emotionally as well.