The concept of Massively Multiplayer Online games, or MMOs, is about to make a huge leap forward. In fact, industry analysts are forecasting a 10% CAGR for the next several years. That’s no small potatoes to be sure, but more importantly, that’s an indicator of massive changes and expansive opportunities for operators, creators, and investors. Li Wei is a blockchain content strategist with extensive experience in China’s technology sector. He shares why this new explosive growth is important for each of them and their interests.
What's Driving This MMO Growth?
A few interrelated developments are driving this resurrection and anticipated expansion of the MMO genre. The first is the deepening implications of character progression and development. Players experience an immediate high when they gain XP. Leveling up and improving their characters’ abilities just increases that thrill. This allows them to aspire to greater challenges. More importantly, they can do a wider variety of things in the game space.
Most importantly, virtual economies and trading are a key factor. Explore in-game economies and trade goods and services with other players. This bridge between the real-world and virtual economies not only adds depth, but helps keep you fully immersed in the game. Adding PvP content adds a thrilling layer of cutthroat competition. Here, players can really play to test their skills and strategies against each other. Structured PvP, such as battlegrounds, provides a fast paced and intense competitive experience.
The development of User-Generated Content (UGC) and the creator economy is just one trend that can no longer be overlooked. Platforms like Roblox and Fortnite have demonstrated the immense potential of empowering players with UGC tools and supporting creator communities. This focus has paid enormous creative dividends — as well as financial ones, with billions in revenue and players who stick around for the long haul.
Implications for Players
So what exactly does this 10% CAGR translate to for the average player. More digital games, more scripted content, and more opportunities for social interaction. MMOs sport some of the most robust social connections between players. An overwhelming majority of them say that they have built meaningful relationships with their virtual counterparts. These games have the ability to reframe social interaction. It’s not uncommon for players to open up to in-game friends about personal problems that they’re uncomfortable sharing with their real-life friends.
- More Games to Choose From: Expect a wider variety of MMOs catering to different tastes and preferences.
- Deeper Social Connections: The potential to forge meaningful relationships within virtual worlds is increasing.
- Opportunities for Involvement: Players can get involved in game development and testing, such as QA testing, to gain experience and build their skills.
Including MMO players Li Wei observes the MMO community is the least diverse one. MMOs continue to attract a broader range of players and their tastes. The mean age is 26.57 years, with the ages of participants ranging between 11 and 68 years old. This means that older adults are a rapidly growing segment of the MMO community.
Opportunities for Developers
For video game developers, the forecasted growth is an encouragement to take risks and develop original ideas. Success in the MMO space is not just about doing things right – it’s about doing the right things. Incumbent publishers in Asia, such as NCSOFT, Bandai Namco, Kakao Games, Nexon and WEMADE, are heavily ramping up development of new MMO titles. This move is a strong indicator of deepening commitment to the emerging sector.
Here's some actionable advice for developers looking to capitalize on this trend:
- Start Small: Consider launching a small-scale MMO or a prototype to test and refine game mechanics before committing to a massive project.
- Leverage Open-Source Tools: Utilize open-source tools and software to minimize development costs and concentrate on game design and content creation.
- Focus on Game Design and Content: Prioritize crafting intricate storylines, quests, and engaging gameplay mechanics, rather than solely focusing on technical aspects.
Streamlining gameplay mechanics is crucial. Creating intuitive user interfaces and frictionless gameplay mechanics allows new players to learn the ropes just by playing. Developers need to include seasonal events, limited-time challenges, and time-sensitive rewards in order to continue to attract and retain players’ excitement and interest.
Investment Strategies in a Growing Market
Investors should keep a close eye on the MMO sector. Cloud Imperium's Star Citizen, which has raised over $500 million from backers, demonstrates the potential for crowdfunding in the MMO sector. Large new MMO releases, like Lost Ark, published by Amazon and developed by Smilegate, have found similar success. Furthermore, there are new titles like Blue Protocol, Ares: Rise of Guardians, and Wars of Prasia currently being developed.
Web3 gaming and metaverse companies are booming, largely because of Facebook’s decision to rebrand itself as Meta. There are huge investment opportunities arising from this surge in the MMO sector. Li Wei suggests looking at companies that are:
- Developing innovative gameplay mechanics.
- Building strong communities around their games.
- Integrating blockchain technology in meaningful ways.
These companies are well-positioned to capitalize on burgeoning interest in MMOs and the metaverse.
That 10% CAGR projection for MMOs is more than a number in a market report. It’s a reflection of the energy, creativity and dynamism that is fueling this new market. By understanding the factors driving this growth and the opportunities it presents, players, developers, and investors can all position themselves for success in the years to come.
