The Future of Gaming: AR/VR, Cloud and Blockchain Gaming

The gaming industry has seen significant global reach, revenues, and audience development expansions. Breakthroughs in technology and connectivity have enriched user experience, while demographics have evolved to include more participants from older generations and women, making the sector increasingly inclusive to all. Valued at $198.4 billion in 2021, the gaming market is projected to grow to $339.95 billion by 2027, a CAGR of 8.94% over 2022-2027. Behind this growth are innovation and development drivers in AR/VR, Cloud and Blockchain Gaming.

The Rise of AR/VR in Gaming

What is AR/VR Gaming?

AR Gaming integrates game visuals and audio with the user's real-time environment, utilising smartphones, tablets, and portable gaming systems without requiring specialised headsets. In contrast, VR gaming provides a fully immersive experience through VR headsets, sensor-equipped gloves, and hand controllers, transporting players into a completely digital world.

The AR and VR gaming market is projected to reach $26 billion by 2026, with significant contributions from platforms like Meta's Quest Store, where a third of its 400 titles have grossed over $1 million. This growth is underpinned by a 36.5% increase in VR spending in 2021, expected to rise to $7.6 billion by 2026. The UAE is at the forefront of this revolution. AR and VR are expected to contribute $4.1 billion to its economy by 2030, highlighted by Dubai's status as home to the world's largest VR and AR theme park.

Recent AR/VR technology integrations have significantly enhanced the gaming experience. Meta's Quest Store's success, with 33 titles surpassing $10 million in gross revenue, exemplifies this trend. More recently, Apple released the Apple Vision Pro, the tech giant’s first spatial computing headset. Coupled with Apple Arcade, the company’s online gaming platform, players can now access new dimensions with 12 unique spatial games using VR technology. With prominent tech companies like Meta and Apple leading the way, the driving forces of AR/VR are limitless.

Source: DMCC Future of Trade Report: Special Gaming Edition

Cloud Gaming enables gameplay through remote servers in data centres. This eliminates downloading games, requiring only a reliable internet connection. Streaming games require a reliable internet connection to transmit gaming information to an app or browser installed on the gamer’s device. Since its introduction in the UAE in 2019 via Etisalat, cloud gaming has been integral to the nation's digital transformation, forecasted to grow from $1 billion to $12 billion between 2020 and 2026.

Cloud Gaming: Not a Competitor but a Revenue Diversifier

Despite robust cloud infrastructures and a large player base, cloud gaming is not a competitor to the traditional console. Cloud gaming has assisted traditional console makers in diversifying revenue streams. This is seen with cloud industry leader Microsoft being a major player in console gaming with Xbox. Current revenue sources in cloud gaming include microtransactions and subscriptions. The growth of cloud gaming hinges on internet speeds, where mature 5G internet infrastructures are expected to boost the cloud gaming sector by nearly one-third from 2021 to 2024, according to the UAE Ministry of Economy.

Source: DMCC Future of Trade Report: Special Gaming Edition

Also known as GameFi, blockchain gaming integrates distributed ledger technology, typically cryptocurrency tokens or NFTs, which players can buy and sell via in-game currencies. This decentralised model of the gaming world empowers players with actual ownership of in-game assets through cryptocurrencies and NFTs. This model has fostered a robust sector within the decentralised app (dapp) industry, with blockchain games comprising nearly 50% of on-chain activities and a 60% increase in unique active wallets.

Blockchain gaming is transforming the industry by allowing players to own and trade in-game assets through blockchain technology. This innovation enables players to monetise their achievements and drives almost 50% of on-chain activities, highlighting the sector’s vibrancy. Despite market fluctuations, a 60% increase in unique active wallets shows growing interest and engagement in blockchain gaming.

Blockchain Gaming's Core Challenges

DMCC plays a crucial role in shaping Dubai's gaming industry's future through its Gaming Centre, offering members access to cutting-edge accelerator programmes and essential partnerships with Brinc, Astrolabs, and Level Up. Additionally, ecosystem members gain access to the DMCC Gaming Centre, a state-of-the-art development facility located in the heart of JLT. 

The integration of AR/VR, Cloud, and Blockchain technologies is redefining the foundation of how we engage with digital worlds. From the immersive depths of AR/VR, which offer unparalleled gaming experiences, to the expansive reach of Cloud gaming, which breaks down hardware barriers, and the revolutionary ownership models introduced by Blockchain, each technology contributes to a more inclusive, dynamic, and economically vibrant gaming ecosystem.

Moving forward, it's clear that these innovations are building blocks for a new era in gaming that promises greater access, engagement, and sustainability. DMCC, with its forward-thinking Gaming Ecosystem and the state-of-the-art Gaming Centre, is at the forefront of this transformation, not just in Dubai but globally, offering a blueprint for how technology, community, and innovation can converge to create a thriving industry. As we enter this digital renaissance, the possibilities for AR/VR, Cloud, and Blockchain gaming are endless. This new era promises an exciting chapter for gamers, developers, and the global gaming community.