How Can Startups Handle the Coronavirus Pandemic
Online entertainment and gaming companies have to face challenges like never before due to the Coronavirus pandemic. Whether it comes to financial or marketing losses, the problems should not be taken at surface value. The economic recession has the potential to turn this sector on its head. Let's check the subject in detail.
Plans of gaming companies
Total revenues for the gaming sector were almost $2 billion, down 2.1% year-on-year. Dota title at dota2 is a popular game that a mobile version of the Warzone addition. While being launched under a free-to-play business concept, Warzone has already attracted more than 60 million users worldwide.
FIFA 20 and Madden NFL 20 excelled for Electronics Art in the sports gaming sector, while Apex Legends was the most downloaded free-to-play title on the PlayStation site in 2019. After the COVID-19 pandemic, the situation is getting worse in terms of financial profits.
These are two gaming companies who managed to benefit from societal lockdown protocols, namely Microsoft with Xbox and its cloud gaming platform Project xCloud. Their gaming products are focused on the home users who receive the maximum joy out of online titles.
Telco data backs up the financials
With more users staying at home, there is a risk for broadband networks. These assets have not been deployed with the existing societal lockdown in mind. Video conferencing, content streaming, and gaming are only some of those assets. Due to the increasing number of private companies and start-ups in the gaming segment, it is hard to gain full visibility into the financial gains.
The future perspectives
The events related to COVID-19 are marked with the high level of speculation. Of course, there are international companies corporations who have profited from the shift to online gaming, but there are multiple start-ups who have become popular thanks to a viral hit. Angry Birds title is just the case like that.
Apart from these blockbuster hits, there are many developers who have profited from online gaming. That way, they made sure that the ecosystem is wide and diverse enough to continue the business operations. Many of these companies belong to the private sector, spurred on by revenues coming through the app economy. Will a recession halt these financial resources? Well, the gaming industry consolidation can be a reality, with multinationals snapping-up cut-price options.