Insights From the Intersection of Entertainment and Gaming
When games like “Fortnite” and “Among Us” seemingly explode from obscurity and become household names in a matter of months, it can be difficult to predict outcomes in the video game space.
That’s why Variety gathered several leaders in the space together for its Gaming and Entertainment Breakfast last week alongside presenter Pixel United.
Across three discussions, several key insights emerged:
Live services are propelling mobile gaming — and more.
Pixel, a subsidiary under Australian gambling entity Aristocrat, specializes in mobile games targeting the ”midcore” segment — i.e., games that can be easily learned but specialize in specific gameplay elements, followed by more casual games, where gameplay is much simpler and accessible to all ages and skill levels, and then casino-driven games that leverage slot-machine content.
All of these games are free to play, meaning Pixel derives its revenue from voluntary in-game purchases, which are widely referred to as microtransactions throughout the industry and make up the predominant revenue model for the sector.
In his one-on-one with Variety co-editor-in-chief Cynthia Littleton, Pixel United CEO Mike Lang set the stage for the state of gaming and how prominent of a role Pixel United gets to play.
“We sit in the mobile games business, which is $100 billion dollars,” said Lang. “The way to think about it is the entire video game business is about $200 billion dollars.”