Electronic games: profit opportunities for young people or addiction?

  • Time:Apr 19
  • Written : smartwearsonline
  • Category:Article

The same scene is repeated in many homes; Parents asking their children to turn off their video game consoles because they take up too much of their time, or negotiating specific rules about how long and when to play, what types of games and who to play with online.

This scene is the smallest link in a rapidly growing global industry of electronic games (whether video or mobile games), worth more than $300 billion, according to a report published by the American company Accenture last April.

Market research firm Nielsen estimated the video game industry's share of the industry at about $140 billion in 2020, achieving annual growth of 12 percent.

Ghazi Beydoun, business development officer at Gamers Hub, lived through all the stages of the development of the gaming industry, starting with the aforementioned scene with his father, to his current work in the field of organizing and commenting on gaming competitions.

Ghazi began his career working in sales, and traveled to Dubai to work in the IT field for a while, until he got the opportunity to work at Gamers Hub “This was probably not the biggest opportunity for me then, and it was a professional risk, but it turned out to be the best for me and for my future career that want it".

Skip topics that may interest you and continue reading topics that may interest you

Topics that may interest you at the end

But Ghazi's passion for video games predates this period, as he used to visit internet cafes and play with his friends or in local competitions in his home country of Lebanon. "Young people were getting together and organizing a local counter-strike competition."

Counter-Strike is one of the most powerful electronic games in the world, and one of the first games that local video game tournaments started, in which the winner would travel to compete in international competitions, which awarded prizes worth between 20-30 thousand dollars.

Arab market

Skip the podcast and keep reading My Teen Podcast (Morahakaty)

Teenage taboos, presented by Karima Kouh and prepared by Mais Baqy.

Episodes

podcast end

The big shift in electronic games competitions globally came in 2012, when Valve (the developer of the Dota game) raised the value of prizes in its competitions to one million dollars. Ghazi believes that this stage brought about a major shift in the world of the games industry, as these awards motivated many to devote themselves to these games at a time when no one had thought before of becoming a "professional player".

The Arab world was not part of this transformation, according to Ghazi, as Arab competitions continued as individual efforts of players and teams motivated only by their enthusiasm for the games. However, this enthusiasm and the increase in the number of players and teams in competitions was the nucleus for the market to open more to this industry.

In 2017, Saad Khan launched Gamers Hub in the UAE, “with the aim of developing esports competitions in the Middle East with international standards, expanding business opportunities for players and developers and creating an environment that brings together gamers in the region.”

Khan says that the interest in local competitions began within the Emirates, but the company later expanded partnerships with international game developers to organize regional competitions. "The first companies that noticed the Arab market were Riot Games, which participated in organizing a regional competition that included the UAE, Saudi Arabia and Egypt."

These competitions opened the door to new opportunities in the Arab market. “Now we see the emergence of many young players, and the formation of many teams to compete in competitions. Major companies have also realized these opportunities and are organizing competitions specific to the region, in which the values ​​and numbers of prizes are increased.”

Several companies have already started releasing versions of games in Arabic with Arabic content and translating their sites into Arabic, and some have even opened offices in the region.

"Next Petroleum"

The size of this industry in the Arab world is growing rapidly, even though it is an emerging market, as it achieved a growth of ten percent between 2017 and 2019, from $693 million to $773 million. The value of this industry in the region is expected to reach $6 billion next year.

The largest regional market for this industry is now located in the Gulf, where the value of the electronic games industry exceeds 820 million dollars. The largest share in this market is for the UAE and Saudi Arabia, which have started sponsoring teams for electronic games.

Estimates indicate that Saudi Arabia alone's share of the gaming industry on its various platforms may exceed one billion dollars, if the Kingdom ranks 19th in the world as the largest market for games.

الألعاب الإلكترونية: فرص ربح للشباب أم إدمان؟

The UAE is also now working to establish a free zone for e-sports, in addition to its virtual free zone, which can include one hundred thousand companies, all as part of a general trend in the country to support the digital economy and e-commerce.

According to Accenture's report, $200 billion of the global gaming industry's value (whether via mobile, computer or other gaming platforms) comes directly from the game's hardware and software itself and its advertising, and another $100 billion from gaming-related activities such as sales of accessories and parts, industry Electronic content of games.

Likewise in the regional context, the toy industry is currently attracting other complementary activities. Khan says his company's activities and competitions have attracted partnerships with non-game brands, including sportswear or furniture companies, as well as activities in advertising, public relations and e-commerce.

Khan added, "There are now educational services targeting students interested in the world of gaming, offering industry-specific courses, whether professional gamers or those interested in other aspects of the industry."

"A new generation of Arab digital content makers interested in the world of games has also emerged. Local companies involved in developing Arab electronic games have also emerged, although the greatest dominance is now for major international companies."

Ghazi believes that Arab game developers are not yet ready to compete with major companies, "but the industry community is starting to form now, and it will develop with time."

Ghazi monitored the impact of the growth of the gaming industry in other sectors, especially with the closure measures related to Corona, "For example, fast food restaurants have become offering meals for game competitions, and many have turned to the content industry because it makes profits perhaps more than playing itself. Games have now replaced the traditional entertainment industry. The content of the games has become the television for the new generations, and the gaming industry is the next oil in the region."

"Electronic Games Addiction"

Experts expect the Corona pandemic to cause a boom in the electronic games industry in the region, and it is expected that the average player in the UAE will spend on the game up to $ 115. Saudi Arabia also organized a charitable competition to collect donations to confront Corona, with prizes amounting to 10 million dollars. This is in addition to the increase in sales of electronic devices and virtual reality devices complementing games.

With millions of Arab youth interested in gaming, the industry remains confronted with traditional concerns about mental and social health, especially among adolescents.

The World Health Organization classifies addiction to electronic games as a type of mental disorder. But Khan believes that it - like any sport - needs balance and moderation.

He says, “We always support moderation in playing, safety and cyber awareness, and awareness of the advantages and risks of playing. Ultimately, the player needs physical and mental fitness to be able to think about the game and compete in making the plans and analysis that they need.”

Ghazi sees in electronic games social advantages, contrary to the common belief that it causes isolation, as it opens the way for communication and making friends with other players in the world.

"My closest friends are the ones I got to know in the gaming world, and if my father had left me before, I would have gotten to what I wanted faster."

What do you think

How to benefit from the growth of the gaming industry in the Arab world?

How are other business sectors affected by the gaming industry?

How do electronic games affect Arab youth?

Have families' attitudes toward electronic games changed?

How can balance and avoid mental health concerns in families?

Share your experiences if you are interested in the field of games.

We will discuss these and other topics with you in the Wednesday, September 29th episode of Talk Point.

The BBC Extra program also discusses the experiences of players and specialists in electronic games in a special podcast series entitled "Extra Levels", prepared and presented by Mohamed Matar. Episodes will be published next Friday, and you can listen to them at: https://www.bbc.com/arabic/podcasts/p09w8yvk

Lines of communication with a talking point that open half an hour before the program on the number 00442038752989.

If you want to do it by phone, you can send the phone number via email to nuqtat.hewar@bbc.co.uk

You can also send phone numbers to our Facebook page through a private message

You can also give your opinion on the dialogues published on the same page, whose address is: https://www.facebook.com/hewarbbc

Or via Twitter on the hashtag @nuqtqt_hewar

You can also watch episodes of the program through this link on YouTube